Halderman Real Estate works with landowners across the Midwest discussing farmland sales, land values and farm management.  One question we sometimes receive is “what is the best way to sell a part of the farm?”  Maybe you want to shift your capital from some farmland to other potential uses in the farm operation, or maybe to send a child to college or maybe to buy a property with another use/location. Regardless of the reason Halderman can help you meet your goals.

The first step is determining what portion of your farm property to sell.  Of course, how many dollars you need for the alternative use is the key point.  Then matching that dollar amount to a portion of the farm that fits is the challenge.  Do you want to sell of some wooded land, recreational land, maybe a farm that sits 5-10 miles away, or maybe it is some land you might sell on a sale-leaseback agreement where you retain farming rights.  All of these factors need consideration and then Halderman can help you devise a strategy to sell the portion off that enhances the value of the remainder or at least keeps it steady.  For example, don’t sell all of your road frontage for housing and leave a landlocked field behind the new homes.

The second step is to clear up any barriers to a sale.  Do you need to talk to your lender about selling a portion of their collateral?  This could be a 1–2-week process.  Maybe if you are selling residential lots you need to seek plan commission approval, sceptic permits, etc. to sell off the lots to your greatest advantage.  Seeking county approval could take 1-2 months.  Identifying title issues up front allows us to work with you to resolve them the way a buyer might prefer.

Once you know what you want to sell and that you can legally sell it, the third step is the method of sale.  Maybe selling a farm 10 miles away is the simplest answer and a public land auction will work well to maximize your price and move quickly.  Maybe you prefer the sale-leaseback and that becomes a private transaction where we search out just the right buyer for you and your operation.  Maybe you are offering some building sites in a wooded or more recreational portion of the farm and taking your time makes sense to maximize your lot sales price.  This equates to a private sales transaction.  Again, Halderman will guide its sellers through this analysis and decision-making process.

The condition of the property is important in any sale.  Do you need to paint buildings, clean up a fencerow, remove some brush, clean up the farm yard, fix the irrigation pump, etc.?  Any of these will take time and could take 1-2 months.   As you can see, it requires some preparation and planning to execute the sale of a portion of the farm.  Doing it right is important and will maximize your sales price opportunity.  You purchased this farmland with valuable, limited resources, don’t sell it short by not allowing enough time before you “must” do something.

If you are considering a farm sale or selling a portion of your farmland, Halderman Real Estate Services has answers to your questions. Over the past 40+ years, Halderman helped thousands of farm sellers achieve their goals and maximize the value of their farmland asset. Contact us at Halderman.com or 800.424.2324 for more information.  Halderman Can Help!