With Spring planting well underway in Iowa and the midwest the 2008 growing season officially on. It may only be the beginning of the planting season but if you plan to sell your farmland this year its time to begin preparing for your sale.
Here in the midwest farmland sales are popular in the fall through winter but sales to occur at other times as well. Auctions are the most popular method of selling farmland and in the past 5 years land prices have doubled. There have been some surprises along the way. At a recent auction I was told by a person in attendance that the farm would sell for no more than $3500 per acre. In fact the seller had nearly sold the land for close to that price before contacting us earlier this year. When the bidding was complete the farm sold for $4900 per acre. Those are surprises that sellers love. There have been many other examples in the past few years. With land values climbing nearly 22% the last September to September period I suspect we'll see positive gains again this year in farmland values at auction.
Thinking of selling?
If you are considering selling farmland this year there has probably never been a better time. With land values up sharply and grain markets reaching all time highs land is in demand.
The sooner you contact us about your land auction the more time we will have to prepare and advise you. Certain timelines will apply if you have tenants leasing the property and you'll want to take a look at the lease you have in place if you have a written lease. Generally you must notify your tenant of termination of the year to year lease before September 1, in which case they will relinquish possession of the land on the following March 1. If this notification is not executed before the notification deadline you'll likely have to allow the tenant one more year of farming the land. This does not mean you can not sell the land, however the buyer will only have landlords possession of the land for the first growing season. Now if the farm is being purchased by an investor many times they are glad to have a tenant already on the land and may continue the lease or negotiate a new lease with the tenant.
Absentee landowner?
Are you an absentee landowner or settling an estate? When distance is an issue we want you to contact us and let us handle it for you. We understand the complexity of trying to do things from a distance and are able to handle everything on our end. In today's world of faxes, email and overnight mail we are able to complete and entire transaction with ever requiring you to travel to the area.
Date of Sale
Timing a land auction is an important consideration and with this years crop going in late, its going to be harvested late as well. Timing your land auction at the height of harvest is likely to result in less than idea attendance at your sale. Additionally there are other timing considerations that are important which are often determined by the area the sale will be held. Visit our Iowa Farmland Auctions site to get more information on booking your own sale. Get your auction booked early to ensure great placement on the calendar and a highly attended sale.
