Yes, the month you sell farmland can matter, but there is no single best month to sell a farm.
Good farmland can sell successfully throughout the year. What matters more is choosing a sale date that fits the farm, the agricultural calendar, current market conditions, and the needs of potential buyers.
For Iowa farmland, timing can become especially important when buyers are thinking about planting, harvest, possession, leases, and financing.
What Is the Best Month to Sell Farmland?
There is not one month that is automatically better than every other month.
Instead, the best time to sell farmland usually depends on:
- Whether the farm is rented
- When possession is available
- Whether there is a growing crop
- The type and quality of the land
- Current farmland demand
- Interest rates and financing
- Commodity prices
- Local land sales
- The seller’s timeline
- The amount of time available to market the property
A strong farm with the right marketing strategy can attract competitive buyers in January, June, October, or nearly any other time of year.
However, each season has advantages and disadvantages.
Is Winter a Good Time to Sell Farmland?
Winter can be a good time to market farmland.
After harvest is complete, many farmers have a better idea of how their operation performed during the previous year. They may also be planning for the upcoming crop season and considering opportunities to add acres.
Selling during the winter can also provide clarity regarding possession for the next crop year.
For example, a buyer purchasing an Iowa farm during the winter may have an opportunity to take possession and farm the property that spring, depending on any existing lease.
That can make a property more attractive to an operator who wants to expand.
Is Spring a Good Time to Sell Farmland?
Farmland can certainly sell during the spring, but sellers need to think carefully about possession and the upcoming crop.
By spring, many farmers have already made decisions about seed, fertilizer, cash rent, and the acres they plan to operate.
If a farm is already leased for the year, that does not mean it cannot be sold. However, buyers need to clearly understand the lease terms, rental income, possession date, and who has rights to the growing crop.
Investment buyers may actually like having a tenant and rental agreement already in place.
Owner-operators, on the other hand, may prefer a farm they can operate themselves.
Can I Sell Farmland During the Growing Season?
Yes.
A farm does not have to be vacant or between crop years to be sold.
Farmland is regularly marketed while corn and soybeans are growing. In fact, a good-looking crop can help showcase the productivity and management of the property.
The important part is clearly explaining the terms of the sale.
Potential buyers should understand:
- Who owns the growing crop
- Who receives the cash rent
- When possession transfers
- Whether a farm lease is in place
- When the current lease expires
- Any reimbursement or expense arrangements
Clear terms help buyers understand exactly what they are purchasing.
Is Fall a Good Time to Sell Farmland?
Fall is often an active time for farmland sales.
Harvest puts agriculture at the front of many farmers’ minds. Producers are seeing crop yields, evaluating their operations, and beginning to make plans for the next year.
A fall sale may also allow a transaction to be completed before the following planting season.
However, harvest can make scheduling more difficult for some potential buyers. Farmers may be spending long days in the field and have limited time to attend an auction or evaluate a property.
That does not necessarily mean you should avoid selling during harvest. It simply means your marketing strategy and sale schedule should take the local farming calendar into consideration.
Does Selling Before Planting Make Farmland More Valuable?
Not automatically.
However, possession can influence buyer interest.
A farm that is available for the upcoming crop year may appeal to an owner-operator who wants to farm the ground immediately.
If the property is already rented for another year, the buyer may need to wait before farming it personally.
That does not necessarily make the farm less valuable. An investor may see an existing lease as an advantage because the property already has income in place.
The key is knowing who your likely buyers are.
Does Harvest Affect When I Should Sell?
It can.
Harvest provides additional information about the farm and the agricultural economy. Farmers are also making financial and operational decisions for the next crop year.
At the same time, harvest is one of the busiest periods for farmers.
If your likely buyer is a neighboring farmer, scheduling an auction during the busiest part of harvest may require additional consideration.
This is where understanding the local market becomes important. Harvest can be ahead of schedule one year and behind the next.
A sale strategy should account for what is actually happening in the area rather than relying only on a specific date on the calendar.
Does the Month I Sell Affect Farmland Taxes?
The timing of a farmland sale can have tax consequences.
For example, selling in December versus January generally places the transaction in a different tax year. That may affect when the gain from the sale is recognized for federal and state income tax purposes.
Other strategies, such as a 1031 exchange, installment sale, or estate planning decisions, can also make timing important.
These issues can become complicated quickly.
Before choosing a sale or closing date based on taxes, talk with your CPA, attorney, or qualified tax advisor. Your real estate professional can coordinate the transaction around the strategy recommended by your tax and legal professionals.
Should I Wait for Farmland Prices to Go Up?
Trying to perfectly time the farmland market can be difficult.
Land values are influenced by many factors, including:
- Interest rates
- Commodity prices
- Farm profitability
- Investor demand
- Availability of farmland
- Local competition
- Soil quality
- Location
- Agricultural policy
- The overall economy
Waiting six months does not guarantee your farm will be worth more.
Likewise, selling immediately does not necessarily mean you are leaving money on the table.
Instead of focusing only on what month it is, look at the current market for your specific farm.
How Far Ahead Should I Plan a Farmland Sale?
If possible, start the conversation before you actually need to sell.
Having additional time gives you and your farmland professional an opportunity to review the property, collect information, discuss the sale method, prepare marketing materials, and select a sale date.
Important information may include:
- FSA records
- CSR2 information
- Farm leases
- Tile maps
- Surveys
- Property taxes
- Easements
- Conservation information
- Yield history
- Legal descriptions
- Improvements
- Rental information
Preparing early can also give you time to talk with your attorney and tax professional before making final decisions.
What Matters More Than the Month You Sell?
The way your farmland is presented to the market can matter more than the month it is sold.
A successful farmland sale requires getting the property in front of the right buyers and giving those buyers the information they need to make a decision.
That may include neighboring farmers, local producers, investors, previous bidders, absentee landowners, and other qualified farmland buyers.
The method of sale matters too.
Depending on the property and seller’s goals, options may include:
- Live auction
- Simulcast auction
- Online auction
- Sealed bid
- Traditional listing
- Private sale
The right strategy should be based on the individual property rather than simply choosing a month because farmland traditionally sells during that time of year.
Frequently Asked Questions
What is the best month to sell farmland in Iowa?
There is no single best month. The ideal timing depends on the farm, lease, possession, crop cycle, market conditions, and likely buyers.
Can I sell farmland while it is rented?
Yes. Farmland can be sold with an existing lease. Buyers should be informed of the lease terms, rental income, and possession date.
Can I sell farmland with crops in the field?
Yes. Farmland can be sold during the growing season. The purchase agreement should clearly explain ownership of the crop, possession, rental income, and other applicable terms.
Is it better to sell farmland before planting or after harvest?
Either can work. A sale before planting may appeal to an owner-operator seeking possession for the upcoming crop year, while a sale after harvest may fit naturally with farmers making plans for the following season.
Should I wait until next year to sell my farm?
That depends on your goals and the current market. Waiting does not guarantee a higher sale price. Before deciding, compare today’s market with your financial, family, tax, and ownership goals.
So, Does It Matter What Month I Sell Farmland?
Yes, but the month alone should not determine when you sell.
The better question is: When will my farm be best positioned to attract the right buyers and create competition?
For one farm, that could be immediately after harvest. For another, it could be during the winter before the next crop season. Another property may have characteristics that make the time of year much less important.
At Whitaker Marketing Group, we help farmland owners evaluate their property, the current land market, buyer demand, and the different methods available for selling farmland. From there, we can build a marketing and sale strategy around the property and the seller’s goals.
If you’re considering selling farmland in Iowa or across the Midwest, you don’t have to wait for a particular month to start planning. Understanding your options early can help you decide when the time is right.
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