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Tips for Buying and Selling Farmland

Purchasing and selling farmland is always easier said than done. Sticking to a budget can seem impossible when more agricultural land is needed for more income and to help decrease expenses. With yields increasing year after year, fertile farmlands soon pay for themselves with positive returns on investments. However, in our current farm economy many farmers ask how it can be feasible to purchase or sell their land.

On this page, you will find some lessons and ideas on finding farms for sale or rent, buying land, selling farmland, and investing in land.

Farms for Sale

Whether a family member has returned home to help run the family farm, or your own family is growing, purchasing land creates the ability to maintain and run larger family farms. These top 10 things you need to know about farmland give you the basis on understanding the current market of productive land for sale.

If you’re looking to purchase or sell land, farmland auctions are one of the best ways to find, buy, and sell within the Midwest. Maintaining a positive return on investment (ROI) is crucial to driving bidders to farmland auctions. With a positive ROI, farmland sales across the Midwest have remained strong the past few years.

Cheap Land for Sale

Is there no such thing as cheap land for sale? Of course not! But it doesn't come easy. Finding bargains requires searching for farmland in places you haven’t looked before, researching alternative crops, and looking at land in the next state over. Comparing tillable acres is also an important aspect to review. Learn more tricks to find some of America’s best farmland bargains and some of cheapest places to buy a farm.

Farmland Market

What may have felt like a repeat of the 1980’s farmland crisis is finally over.

For the first time since 2014, this article shows how farmland prices are on the rise in the Midwest. For example, the average value of U.S. farm real estate doubled from $1,483 per acre in 2000 to a record $3,060 in 2015, according to the USDA.

Many farmers are asking how agricultural land prices can be so significantly high when commodity prices don’t reflect the land prices. From making multigenerational investments to farmers using dollar cost averaging, farmers need to remember that money is made in the margins. See how farmers are affording high land prices.

Farms for Rent

Buying farmland may not always be the option or the right choice. Leasing may be the next best choice. When finding farmland for lease and determining a contract, it’s important to reach a fair agreement for both sides of the deal to make it work successfully.  One of the most important things is to get everything in writing as many land deals are made with a handshake. Having the contract and responsibilities down on paper helps confirm and break any issues before they arise. To find more tips, these five big misconceptions about farmland leasing can save you some damage before signing off on the deal.

When it comes to leasing, it depends on the landowner’s request of the arrangement, whether that be cash rent, flexible rent, crop sharing, and more. One of the most well used and simplest rental arrangements is cash rent. However, it’s not always simple to compute due to rates and custom needs from tenants and landlords. These seven ways to compute cash rent used throughout the country will be helpful in computing rent accurately.

Selling Farmland

Sometimes to balance out expenses, selling farmland may be the easiest way out. As emotional as selling land can be, you aren’t alone. Although land auctions are a great way to maximize exposure of the land for sale, putting yourself in the limelight isn’t always the best message to send. Knowing your options and what investors want can make or break a successful sale for the best price. See this article for tips on how to sell your farmland.

Investing in Farmland

One of the best returns on investments comes from productive farmland acres. With recently low commodity prices, why aren’t agricultural land prices matching this? See why isn’t land cheaper in this article to find out and when land prices will make sense soon.

American farmers and investors aren’t the only ones buying farmland. For example, in 2013, a Chinese company purchased U.S. pork producers Smithfield Foods for a record $4.7 billion while also purchasing over 146,000 acres. The controversial deal raised concerns of foreign purchases of farmland. See in this article how foreign investment in land is on the rise.

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