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Farmland Sales Expected to be Especially Brisk
USAgNet - 10/19/2021

The amount of farmland being sold increased since the first of the year and charged ahead during the pre-harvest time frame recently. The increased selling will continue through the fall land sales season and most likely into early winter according to the amount of auction activity on the books at Farmers National Company.

The current increase in land sales is quite definite coming off a slower period in the land market the past few years.

The boost in selling interest by landowners has been largely driven by the strong up move in land prices the past twelve months. A normal amount of land is sold into the open market each year by estates and recent inheritors who decide to sell the newly owned asset instead of keeping it. This happens most often with larger family groups who conclude that it is easier to settle the estate with cash instead of land.

Sales of land by inheritors is fairly consistent year to year.

Currently, we are seeing several other reasons bringing a few more landowners to the conclusion that now is the time to sell. The higher prices are the main reason some are selling now. Others landowners have decided that the best succession plan for their future estate is to liquidate the land asset and have cash for the next generation to divide. Other sellers are landowners who want to trade into better quality land or a tract closer to home and they will normally utilize the 1031 Tax-Deferred Exchange to do that. For a portion of landowners, the decision to sell in 2021 was prompted by the uncertainty in tax policy being discussed.


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