“Farmland as a good long term investment is hard to beat,” said local Farmers National Company real estate broker Bill Gaughan. “But there are those times when selling the farm is the best option for a farm operator or investor.”
“Selling farmland is more challenging now due to low commodity prices, bumper crops for 2014, 2015 and 2016, and rising interest rates. Selling a farm in the current market can be done successfully, but it takes smart planning both before the sale, and wise management of the proceeds afterwards,” said Gaughan.
To help shed some light on both issues Farmers National Company, the world’s largest farm management and farm real estate company is sponsoring a complimentary seminar on October 5th to help landowners understand their potential alternatives and strategies, both for selling the farm and managing the assets from the sale.
“Receiving top value for farmland is now more challenging than it was just a few years ago. Gaughan says that “Back then all you had to do was put up a sign and a good farm would sell quickly. Now it takes some intensive pre-sale preparation, and creativity in marketing the farm.”
These are things that Farmers National Company is expert at having been in the agricultural services business since 1929 and having been through many farmland price cycles. That is one reason Farmers National Company is reporting record sales in a time that most companies are struggling to sell farms.
Farmers National Company reports that real estate sales volume is up 21% during the first half of its fiscal year compared to last year and up 38% from a year earlier with an increase in both individual sales transactions and acres sold.
The acres sold by the company are on the increase as well, increasing 10% from last year and 27% compared to two years ago. Transaction volume has also been on the increase, up 47% over the last two years!
Equally important to selling the farm is deciding how to manage the proceeds. From a financial point of view the most often voiced concern is what will I do with the money if I do sell? Currently capital gains taxes, including federal, state, and other federal taxes may for some sellers, be in the 30% plus category.
The most effective type of post-sale investments are dependent on the both the financial goals and the situation of each investor.
To address the issue of managing post sale assets Farmers National Company at this complimentary seminar will be featuring independent financial professionals who are not affiliated with Farmers National Company. These advisors have years of experience with managing the assets resulting from the sale of a farm.
Some traditional strategies have included using a 1031 tax free exchange to acquire nonfarm real estate thus deferring Capital Gains taxes. In some cases landowners may consider selling the land on a contract basis thus reducing their capital gains taxes.
Other times other optional investment vehicles can be used. These and other issues along with a question and answer session will be featured at the seminar.
The seminar will be held in Overland Park Kansas on October 5th from 2 to 3:30 in the afternoon and repeated in the evening from 7 to 8:30. Seating is limited, so even though the seminar is free, attendees are asked to register.
For location information and to register, visit www.KCLandSeminar.com, call Farmers National Company at 913-837-4665, or email WGaughan@FarmersNational.com. On the web you can visit www.FarmersNational.com/KC.
Farmers National Company is uniquely suited to assist any landowner considering selling their farm. Farmers National Company is the largest non-franchise land real estate company in the United States. As a result, you get the full value of the entire company, not just that of a local franchisee.
With over 200 agents across the country Farmers National has an unmatched amount of expertise and assets to help a land owner realize the full value of the farm when it sells.
Farmers National Company, an employee-owned company, is the nation’s leading agricultural landowner services company. Farmers National Company has sold more than 3,800 farms and more than $2.44 billion of real estate during the last five years. The company manages more than 5,000 farms and ranches in 28 states comprising more than 2 million acres.
Additional services provided by the company include auctions, appraisals, insurance, consultation, oil and gas management, lake management, a national hunting lease program, forest resource management, and FNC Ag Stock. For more information on the company and the services provided, visit the Farmers National Company website at www.FarmersNational.com
What: Seminar on Successfully managing the sale of a farm
Price: No Charge
When: October 5th at 2PM and 7 PM
Where: Overland Park Kansas
More info: Visit www.KCLandSeminar.com or call 913-837-4665