A Farm land sale today creates opportunities for both the
buyer and the seller. Offers the buyer the ability to
diversify his/her portfolio while the seller can take advantage of tax exchange
laws to prevent capital gain taxes. Furthermore, it provides the
seller with an opportunity to reinvest in other properties or fund for retirement.
Farm land sales in many parts of the country are rising as the baby boomer
generation ages and the average age of the farm increases. Ranches are
also increasing, but ranches seem to attract different buyers. Farm land
attracts the serious investor looking for modest returns, while ranches attracts both the investor looking for a modest return and the recreational
buyer looking for an opportunity to enjoy the land. Ranches on the
market today typically have lower property taxes because of their per acre value
and have seen sharp increases in rental rates over the past three years because
of strong cattle prices.
Agricultural land throughout the United States is available
to most investors. However, some states have corporate farming laws and
investors are encouraged to understand these laws before investing. Farm land and
ranch land are good investments for the long-term investor who wants a steady,
strong staple in his investment portfolio.
Has
increased greatly in recent years. The profile of land owners is changing,
with many new investors buying land.
Midwest farm land is attractive because of its relatively long growing season
and close proximity to markets. It is generally regarded as a
good investment, particularly in today’s economic climate with low interest
rates and a strong commodities market.
While farm land in North Dakota and Minnesota may have lower proforma revenues
than other Midwest land, the land itself is generally less expensive to
purchase and is likely to have lower property taxes.
If you are looking land today, it is wise to engage a professional land manager if you do not have experience of managing this type of property. A land manager can substantially increase the returns on your farm land and ranch investment, and they may even help to increase the value of your land.
Please contact our office to learn more about these services and how we can help you make the most of your farm land investments.