FIVE REASONS WHY NOW IS A GOOD TIME TO SELL

 

  1. Current prices for agricultural land remain at an all-time high.

  2. Volatility in financial markets is creating a desire for hard assets. 

  3. Interest rates now rising from the historic lows. 

  4. Lower commodity prices and higher equipment and input costs are leading to farmers needing to sell.

  5. Estate issues with illiquid assets.

The question many landowners often ask is, “Why do I want to sell my land?” After all, there has been so much instability in the financial markets and landowners don't want to pay the hefty taxes. Those issues are very real issues that our national/world economy faces today, but there are also some very compelling reasons why a landowner should consider selling land.

Agricultural land value is at an all-time high. Even during the recession of the last few years farmland values have continued to increase to all-time high levels. The value for agricultural land has never been greater. Will this continue?

Demand for agricultural land has been very strong through the “great recession” as people sought to invest in hard assets. The national and world economy has strengthened and appeared to restore investor’s confidence in financial markets, until recent volatility. How long will demand continue?

As a response to the “great recession,” interest rates have been at historically low levels. With the national and world economy showing signs of progress forecasters foresee interest rates are now rising accordingly.

One of the most daunting obstacles farmers face today is the combination of falling commodity prices and rising equipment/input costs. This puts many farmers in need of relieving some of their debt load by selling land. Many forecasters see a reverse in the old farming philosophy of owning 80% and leasing 20% due to these higher costs and anticipate a reversal of this formula for the future.

So…there are some compelling reason to consider selling land.

Estate issues often separate and divide loved ones for generations. There is wisdom in simplifying what heirs will face when the next generation takes the lead.

Grass