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What happens after the auction?

What happens after the auction?

What happens after the auction? Top 50 Questions about Farmland Hey, it's the Iowa land guy. And here's the top 50 questions that I get asked about farmland. So what happens after the auction? So once the auctions complete, uh, uh, we say sold and we have a price determined. So there's a couple of things that happen. One, of course, we, the auction company will, uh, make sure that. All the documents are executed. We'd like to sit down with you, the seller and the buyer, uh, at the live auction event, and we will complete the purchase agreement paperwork right there. Uh, at Whitaker Marketing Group, we also have a closing plan that has names, phone numbers, addresses, attorneys, banks you're working with, uh, all good, uh, knowledge to have and, uh, documentation before we leave so that we can. Um, so that's the main thing that we do after the auction as the auction company, uh, we remove signs from the property. We'll mark it sold on the websites. Um, oftentimes appraisers will call us after the auction and ask what it might have sold for. Um, if any neighbor farmers call and ask, this was a public auction. So unless otherwise, uh, indicated by the seller, we normally give out that information of what that farm sold for. Um, that is really the start of all the paperwork part of the process. And so, In Whitaker Marketing Group, we have a team of people, and that will go to our closing department. Our closing department then starts communicating with everyone, from the attorney, to the seller, to the buyer, to the title company, the abstracting company, the county for taxes and records, the state for transfer tax, and all those parties involved are in the loop for that closing transaction. So, a lot of communication happens. It gets kind of quiet between the brokerage and the uh, seller until about a week before closing and all that time we're checking all the boxes that are on the list and making sure that uh, all the documents are right on your behalf as the seller representative. And that's pretty much what happens after the auction. David Whitaker | Iowa Land Guy Read More

What do I have to pay for taxes?

What do I have to pay for taxes? Top 50 Questions about Farmland Hey, it's the Iowa land guy. And here's the top 50 questions that I get asked about farmland. So when I'm selling my farm, what do I have to pay for taxes? I want to talk about three different types of taxes. You're going to have to pay. Let's go with the first one that most people think of property tax. Okay. It's due in September. It's due in March. Realize that in Iowa property taxes are paid a year in the rear. So if we're paying this year, we're actually paying for last year's taxes. in this calendar year. So when we sell a property, we have to bring those property taxes up to date. So we forward them for the whole year that we've had it, but then we also prorate taxes to the closing date. So how we do this is we divide the whole year um, by 365 days, okay, and take the your tax amount divided by 365. We get a per day tax amount. We take that and we push it forward Only the days that you own the farm, okay? So if you sell the farm, when we say we prorate taxes to the day of closing, what we mean is you're only going to pay when you own the farm, and as soon as they buy it, they're going to start paying that day. So that's property tax, number one. Number two is revenue stamps or transfer tax. We cover this in a different video, but transfer tax is a tax by the state of Iowa to help make revenue anytime a property changes hands. Uh, arguably on most farms it's under 1, 000, but the more your farm's worth, the more you'll pay in tax. It's 1. 60 per 1, 000. The third tax that you got to think about paying is capital gains tax. There's another video on this one as well. So check out our other videos, but capital gains tax in short is any amount. Your basis is what you bought the farm for or inherited it for. And your relinquished price is what you sold it for. You pay on the gain in between and so there's different fees associated with the gain in between whether it's a federal tax, a net investment tax, or it's a state capital gain tax. Um, make sure you talk with your CPA on this one, but there's three different taxes you got to think about when selling your farm. David Whitaker | Iowa Land Guy Read More

Do you cash the check right away?

Do you cash the check right away?

Do you cash the check right away? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get. Ask about farmland. So once I give you an earnest money check, do you cash it right away? The rule for the Iowa Real Estate Commission is we have five days to get that in the trust account. So typically, after the auction, you'll probably call your banker as a buyer and you will say, Hey, I just bought this farm. We also call the bank, are the funds good? Make sure that everybody's in communication and we move forward with that transaction. Now typically we try and get that to the attorney as soon as we possibly can, and then they, probably take two days before they put it into their trust account and execute on cashing that check. David Whitaker | Iowa Land GuyRead More

How important is farmability?

How important is farmability?

How important is farmability? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get. Ask about farmland. How important is farm ability? So what do I mean by that? How easy is it for the farmer to go in efficiently plant corn and harvest corn or beans or whatever their commodity is on your farm? This is huge. This is one of the main reasons that, uh, brings up the price of a farm. So, uh, there's a CSR score that we've talked about in previous videos. However, farm ability is a, uh, bigger indicator than a lot of people think. So if it is square, flat, and black, it's kinda like tall, dark, and handsome. That is what people want. They want easy farm ability. And as we get planters that are bigger and harvest equipment that's bigger, we would love to be able to come in. Take a wide swath, drop down and have straight rows for a long way where we can plant square. The more topography we have. A little bit harder. It is. The more, um, point rose. So what I mean by point rose is, uh, angles or divisions in the property. Well, the more we have to stop, the more we have to turn around, um, on that farm. If your farm has trees through the middle of a waterway, that is not accessible without going out to the main road and going back. Well, that makes it less farmable. So it takes me longer to get the same job done. So how important is farm ability? Big time. David Whitaker | Iowa Land GuyRead More

Do you need an Attorney?

Do you need an Attorney? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get. Ask about farmland. Do we need to utilize an attorney? So at Whitaker Marketing Group, all of our closings are held in-house, but we utilize an attorney for all of our closings. Uh, arguably with farmland. We have, uh, in encumbrances, uh, meaning money, you owe enc encroachments, meaning the neighbor farmers' fence, or a building, or a cattle building, something of that nature. And there is a chain of title. So who owned it? Who inherited it? Um, did it go to a trust? Did the bank get paid off, et cetera, et cetera, et cetera. There's a lot of moving parts when it comes to, do we use an attorney, yes or no? We found that using the attorneys, um, and ones that we recommend on the front end have helped the process go more smoothly and save you dollars in the long run. They help, uh, prep the deed, the declaration of value, the groundwater hazard statement. Uh, we record the documents for you, so it's a two part closing process. Our team locally at Whitaker Marketing Group follows the entire transaction and works with the attorneys on the parts that the attorney needs to work on, works with the lenders on the part that the lender needs to work on. So do you need an attorney? We recommend yes. Yes, you do. David Whitaker | Iowa Land Guy Read More

Do we have Investors?

Do we have Investors?

Do we have investors? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get. Ask about farmland. Do you have investors? We sure do. There's all different types of investors that we like to call on every farmland transaction from institutional investors to crowdsource funding investors, to the individual investors that are just looking in a certain county to build their portfolio. But wholeheartedly, yes. Uh, investors work really good to help push the bid, um, to the top, uh, price. Now realize, Investors work on margins, less emotion. Uh, when an investor is the buyer, so the neighbor, farmer or the local farmer, he might always wanted that farm or she might always wanted that farm. Um, investors are less emotional based and more by the numbers, so there is a number, and when they stop, they stop hard. That being said, it's great to have them there for the competitive bidding aspect at an auction, um, to help, uh, push the bid to the top dollar that somebody is willing to give. David Whitaker | Iowa Land Guy Read More

How long does an auction take?

How long does an auction take? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get. Ask about farmland. How long does an auction take? Uh, every auction's different, depends on how many tracks you have of land, uh, or parcels that we split it up into to sell the farm. Um, the average is probably about a half an hour per track. However, um, the style of auction will depend on how long that auction takes as well. There's multiple types of auctions from live outcry auctions to simulcast or a hybrid video. Uh, live auction. There's phone bid auctions. There is countdown. Timed online auctions. There is, uh, multi parcel auctions. There's high bidders choice auctions, so lots of different ways. There's also sealed bid auctions. Lots of different ways to sell at auction. They all take different time. The average auction probably takes about one hour. One hour total. Um, it probably takes just as long to read the terms and conditions before the auction, uh, to make sure that everybody knows how we're selling it, when we're selling it, um, and all the terms for that auction as it does to actually say sold and determine the high price. David Whitaker | Iowa Land Guy Read More

Will the Land Market Remain Strong

Will the Land Market Remain Strong

Reaching the Peak Experts say farmland values are likely headed for a plateau but plenty of wildcards are still in play. By Cassidy Walter Headlines of record sales and surging land values last year gave voice to the excitement in the market as land prices climbed. As 2023 marches on, the experts say some of that excitement may be waning and to expect strong, but flatter prices going forward. “We'll probably see some high reports of really high-quality farms that are well-located…and we might see some lower-quality farms start to back up a little bit in prices as we head toward the end of the year,” says Tim Koch, executive vice president of business development for Farm Credit Services of America. “But as a whole, I would anticipate that we’ll see a flattening of prices throughout the remainder of the year.” Jackson Takach, chief economist at Farmer Mac, put it this way: “You’re still seeing positive gains in land values, quarter over quarter, but at a much-reduced rate, compared to ’21 or ’22, when they were in the double digits of annual and quarterly growth. Today we’re in the 1% to 2% to 3% range.” Loans on the Rise Data available at the time of this writing echoes Koch’s and Takach’s analysis. Farmers National Co.’s latest Regional Land Value Report looked at farmland sales data for high-quality farmland across 18 states. All saw the average sales price per acre increase between June 2021 and June 2022 and from June 2022 to June 2023. However, the rate of growth between 2021 and 2022 was higher for most states than in the past year. Iowa saw the largest difference between 2022’s increase and 2023’s increase. High-quality farmland averaged $11,900 an acre in 2021 and jumped to $15,000 in 2022. The average increased by only $400 from 2022 to 2023. For some other states the difference was much smaller. The Arkansas average increased $400 per acre between 2021 and 2022 and $300 from 2022 to 2023. Average value increases for Kansas and Oklahoma were equal from 2021 to 2022 and 2022 to 2023. Texas was the only state analyzed that saw a larger increase between 2022 and 2023 than from 2021 to 2022. “These operators have enjoyed a period of high liquidity over the past five years but are now moving into a period of increasing debt service and borrowing,” says Paul Schadegg, senior vice president of real estate operations for Farmers National Co. “This will most likely result in less available cash reserve to deploy for capital expenditures and land purchases. “Looking ahead to the second half of 2023, we anticipate strong competition for high-quality land offered for sale,” he adds. “The overall U.S. agriculture economy is healthy, with Midwestern banks reporting increased operational lending but strong loan performance and projections for a profitable 2023 growing season. Our pipeline for scheduled fall sales is beginning to fill at a typical pace with buyers and sellers of farmland requesting information on upcoming sales.” Holding Steady The Realtors Land Institute Iowa Chapter released its biannual Land Trends and Values Survey in late March. The survey found that on average farmland values in Iowa improved by 0.8% from September 2022 to March 2023. In contrast, between March 2022 and September 2022, values increased 2.8% on average. From September 2021 to March 2022 values increased 14.1%. March 2021 to September 2021 saw an 18.8% jump. David Whitaker, president of Realtors Land Institute Iowa Chapter, says when looking at the numbers from the past several surveys, a good way to describe the most recent one is “steady.” He also expects steadiness over the next six months. “I think there’s enough money out there that we will hold steady,” he says. “I think farmland is the asset that everybody wants and wants to keep and is willing to pay for.” Variables and Volatility While there appears to be agreement that the market is staying strong but cooling down, there is a nonnegotiable caveat that several variables could send land values in an unexpected direction. ● Commodity Prices Experts say there is a strong connection between commodity prices and farm revenue and farmland values. Higher prices equate to farmers having more cash on hand and more interest in investing in their operations. With lower prices, expect the inverse. “It's just like getting a raise at your job,” says Whitaker. “If you get a raise, you feel like you have jingle in your pocket. Guess what? You want to spend money. Let’s go on vacation. Let’s buy more stuff, new tractors, farmland, etc.” Last year peak corn prices were approaching $8.50 a bushel and soybeans neared $18 a bushel. Since then prices have slowly declined, yet the market remains volatile and vulnerable to supply scares. When the June 30 USDA Acreage report pegged 2023 soybean acres 4 billion below the March estimate, November 2023 soybeans closed more than 75¢ higher than they started the day. After Russia ended its participation in the Black Sea Grain Initiative on July 17, September 2023 Chicago wheat climbed nearly 75¢ in the days that followed. December corn gained nearly 50¢. So far, 2023 price spikes are a far cry from 2022 highs, but corn and soybeans remain elevated in comparison to most of the last decade. “There’s still a lot of profits that can be inked in ’23, and combined with healthy land values and solid working capital positions, that is going to give farmers options in ’24, even though the farm economy is starting to contract,” Takach says. Takach also says lower commodity prices may lead to more farm sales, which puts negative pressure on land prices. “If we have a good crop and if commodity prices continue to soften…’24 could be the year we see more supply of farmland come onto the marketplace, and then that would create a downward pressure on prices,” he says. “At the same time, you’d probably see a little bit less demand for the asset class because lower commodity prices, lower farm income, lower revenue generated by the asset, combined with a higher interest rate environment, create downward pressure on asset values.” ● Inflation Steve Bruere, president of Peoples Co., says rising inflation will drive land values up and it is too soon to tell if this current period of high inflation is truly over. “It’s not a foregone conclusion in my mind that land values have peaked,” says Bruere. “I think that the contrarian view would be that inflation is more persistent than anybody thinks, and you could have another leg up on the land market.” However, as of this writing, the Consumer Price Index has declined every month since June 2022 and was at 3% in July, just one percentage point off the U.S. Federal Reserve’s stated goal. ● Interest Rates Higher interest rates are starting to loom larger for farmers as cash reserves start to run low, says Schadegg. “With that, any purchases that are going to be made are going to be leveraged,” he says. “When they're leveraged, which the Midwestern banks are telling us they’re seeing an increase in loan activity, then we go back to the profitability question…. If you’re leveraging the land, you’ve just added an expense of interest…that is definitely going to be an obstacle for any individual or group that is purchasing land moving forward.” Outside Investors Despite all the talk of investors buying farmland, non-farmer investors have little impact on farmland prices. Todd Kuethe, Schrader endowed chair in farmland economics at Purdue University, says investors tend to set a price floor as they are looking for deals while farmers are deciding the ceiling. “As you see farms lose liquidity, or if they’re concerned about rising input costs, or they’re excited to reinvest in machinery instead of into their land, that’s what really drives the dynamics of the prices more so than the outside investors,” he says. Farmers National Co. notes in its latest report on land values that farm operators account for nearly 80% of the company’s sales. In It for the Long Haul In the big picture, farmland remains a good investment, says Koch. “We talk about real estate values when they’re going up a lot,” he says. “We talk about real estate values when they’re going down. If you look at the overall trend in real estate values and you take out some of the peaks and the valleys, ag real estate has a really good track record of a consistent return.” Whitaker says farmland is a unique asset because a farm typically changes hands only once every 60 years. Meaning the right buyer may jump at the opportunity to purchase the right land regardless of market forces. “It’s not going to be for sale again until you die, so if you’re interested, you better fire,” he says. Read More

How much does a farmland broker charge?

How much does a farmland broker charge? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. How much does a farmland broker charge to sell your farm? Man, that's a loaded question. And, uh, there's all different types of services that go into that charge or the fees that are attached as a professional fee. Uh, oftentimes I've seen farm sell anywhere from 0.5% all the way up to a flat fee, but all the way up to, uh, 15%, uh, depending on the farm, depending on the conditions. The marketing budget, the amount of advertising, the promotion, et cetera, et cetera. Some brokers include other fees, like the closing fees, like, um, updating the abstract or the title company fees. Some people even pay your taxes or back taxes on the property. And, um, that's all inclusive in the price. Some folks pay the marketing budget, some pay for the facility, some pay for advertising as a separate budget. And then, uh, the closing fees as a separate budget. So, Oftentimes we charge somewhere between 1% and 10% depending on the value of the farm. Let's pretend you have a 20 million farm. Probably gonna charge you less than if you have a $200,000 farm. Uh, it's the same amount of work that goes into each transaction, uh, a smaller deal or not. We wanna make sure that every client gets the same amount of service and marketing, uh, to promote their farm to the largest audience yielding you the most successful outcome. David Whitaker | Iowa Land Guy Read More

How soon can we close?

How soon can we close?

How soon can we close? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. A question our closing department often gets asked is, how soon can we close on the transaction after an auction or a purchase agreement has been signed? Generally, I tell them about 45 days to close, depending on whether it's a cash transaction or if we are working with lenders and other closing attorneys that have other. Things in line, so it just depends on the transaction, but generally about 45 days. David Whitaker | Iowa Land Guy Read More

Who do we write a check to?

Who do we write a check to? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. So we've executed a purchase agreement. Who the heck do we write the check to? So it's gonna say in the purchase agreement, who and where the earnest funds are going. Typically, at our farmland auctions, we're 10% of whatever the gross price is, and that will be your earnest payment. So, million dollars, I need a hundred thousand dollars down. So again, who do we write the check to? Uh, we write the check to whoever the seller's attorney is, or the seller designates as the attorney. If the seller doesn't have an attorney, uh, we typically use our in-house attorney at Whitaker Marketing Group. However, uh, if it's working with a trust or a, uh, trustee or a receivership, arguably they already have an attorney and we work with their attorney on the selling side. So where does the check get written to the seller's attorney of choice? And it gets held in their trust account. David Whitaker | Iowa Land Guy Read More

What are the time limits for 1031 tax exchange?

What are the time limits for 1031 tax exchange?

What are the time limits for 1031 tax exchange? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. What are the time limits for a 10 31 tax deferred exchange? Lot of numbers you need to know here. First off, when is a sold price? So what is the sale date? Is it when the auctioneer says sold? No, it's not. It's when you actually change the funds, exchange the funds, or CH or funds change hands rather. Um, that is the closing date. So that is the date that they put as the sell date or the sold date. Now from there, you have 45 days forward to recognize or identify a new property. After that, once you recognize that property, there's a couple rules to how you can identify, but once you get that done, you have 180 days to close on it. So what does that mean? I have 180 days to, again, exchange the money. I gotta take the money from the property that I sold and exchange it into the property that I'm buying. In the, in the interim, what happens in the middle? It actually gets put with a qualified intermediary and it, it goes in a separate trust account. That's an LLC made for your transaction, your 10 31 tax deferred exchange. So hopefully that helps with some timelines. You got 45 days and 180. David Whitaker | Iowa Land Guy Read More

What is a 156 form?

What is a 156 form?

What is a 156 form? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. So what is this 1 56 form? 1 56 form is a form that's kind of like a pedigree for your farm. It gives me the total acres, the crop acres. It tells me what the PLC yield is, um, what pro, what, uh, government programs you're involved in. Art County or PLC or, or if there's D C P to it. It tells me if there's wetland designations. It also tells me how the FSA shows, um, the tillable acres. There's oftentimes a map with your 1 56. So again, it's kind of a resume or a pedigree, uh, for your farmland. David Whitaker | Iowa Land Guy Read More

How and when do you serve lease termination?

How and when do you serve lease termination?

How and when do you serve lease termination? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. How and when do you serve lease termination. So you own a farm, you inherited a farm, and there's a renter, a farmer that maybe grandpa or grandma had on the farm and, and we really don't know 'em, but, um, we're deciding to sell it. So how do we serve termination and is there a deadline or when is it due? Great questions. Okay, so things you need to know. Yes, you can serve termination. First off, you can sell a farm with a current lease in place, but it's good business to, uh, uh, maybe try and, uh, serve termination on the farm. So September 1st is the day you need to remember in Iowa. So lease termination is due. So if you're thinking about it, September 1st, you need to give that farmer notice. Otherwise, they're gonna assume that it's the same program as last year, and that they're still renting it for the next year. Now that's when the terminations due. They're still gonna rent the farm or probably, or arguably, their lease is still in place until March. Most farms are leased out from March to March, so they're gonna keep possession until March, but that lease termination has to be to them by September. Okay. Now with that being said, how do we do it? Well, there's online forms that you can use to serve a lease termination. You can get with an attorney and pay them to serve lease termination. Of course, if you're thinking about selling your farm, talk to us, the farmland broker. We have copies of lease termination, and we will assist you in that process. Maybe you don't want to be the bad guy or the bear of bad news. We can also, uh, fill that, uh, void for you and talk with the farmer and let them know what your plans, uh, are for the future and help you execute that document. So call, if you're thinking about executing that lease termination. David Whitaker | Iowa Land Guy Read More

When do I get paid?

When do I get paid?

When do I get paid? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. So when do we get paid? We get paid, uh, normally the day that we close on the transaction. So, uh, the money's gonna get transferred from the buyers to the, uh, closing, uh, office. That closing office will then distribute funds to, uh, the seller or sellers. If there's multiple parties, um, that can happen. If it's a wire transfer, the day of closing. If it is a check afterwards, it might take two or three days to get that check in the mail. But, That's when you get paid. You get paid at closing, and closing is typically on a farmland transaction around an average of 45 days after the auction or after the sale of the property. David Whitaker | Iowa Land Guy Read More

Where do I find the abstract?

Where do I find the abstract?

Where do I find the abstract? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. Where do I find the abstract my parents had? There's a couple places this might be. So first of all, an abstract is that big thick document in Iowa that says the chain of title for E ever and ever. Amen. It's when the US government gave the ground to somebody and then they, they willed it to somebody and some bank owed money on it, and then they split it and then it went to two different parties and who owns it and where all the way to when you own it. That being said, That document is often kept in a safety deposit box. Sometimes family keep it at home in the file cabinet. Um, sometimes the bank, if they had a loan against it or lean against it, um, they keep it in their vault at the bank. So a couple different places to check, but arguably safety deposit box is the number one answer. David Whitaker | Iowa Land Guy Read More

What time do I need to be there?

What time do I need to be there?

What time do I need to be there? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. One question that almost every seller asks when we're having a live simulcast or hybrid auction is, Hey, what time do I need to be there? Um, most of the time at Farmland Auctions, it's a funny thing. Everybody shows up 10 minutes before the sale, they all rush in the door, or they're all sitting in their pickup trucks or vehicles outside the sale. But for some reason, nobody wants to come inside. So I tell most of my sellers, if you wanna show up 15 minutes before, that would be great. We can have a conversation. Of course, we've had all those, uh, uh, conversations prior to showing up at the auction, and now we're just waiting. I don't want you to get. Too nervous if you're showing up 30 minutes before and no one's walking in the door. Arguably, most of them, uh, by history are gonna walk in in the last 10 minutes of, uh, right before the sale. And so we don't need you much before that. But we, as the, uh, marketing and auction company show up about two hours prior to the sale. Um, test the internet connection, test the video connection. Make sure that all the box are checked, um, on our checklist before an auction process. David Whitaker | Iowa Land Guy Read More

When does the buyer get possession?

When does the buyer get possession?

When does the buyer get possession? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. When does the buyer get possession? The buyer gets possession when the money changes hands most often than not. Uh, the real date of possession is whatever's written on the purchase agreement. When the deal is executed. Now realize if there's a lease in place, uh, that even though the possession might take place, that you own the farmland. There might be a lease in place where there's an operator that is going to be operating on that farmland until the lease is expired. Oftentimes in Iowa, that is March. But back to the question, when do I get possession of the property? When can I go walk my property Normally, whenever the money changes hands David Whitaker | Iowa Land Guy Read More

What is a 1031 tax exchange?

What is a 1031 tax exchange?

What is a 1031 tax exchange? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. What is a 1031 tax-deferred exchange? So where did the number 10 31 come from? It's Irs code 1031. There's also 1033 and some other numbers that you'll need to know, but the big one is 10 31. Now, this is not a tax avoidance tool. It's tax-deferred deferred exchange, so like kind property exchange. You're gonna sell one farm and you're gonna buy a replacement farm. There's lots of rules that go into a 1031 exchange. Some big rules or numbers you need to know is 45 days. Okay? 45 days. From what? From when you sold. The old farm. Okay. When you sell your farm and now you want to reinvest, you have 45 days. And when is the sale day? Let me back up just a second. The sale day is not, when we say sold at the auction, the sale day for tax purposes for a 10 31 is when the money changes hands when you close on that farm. From that point, you have 45 days forward to recognize a new farm. What does recognize mean? Recognize means I have, uh, identified a couple of farms. There's some identification rules. We'll look in deeper, but I've identified new farms that would make a good replacement property. We've checked it with our qualified intermediary. They know that, yep, this is a good, uh, this is a good farm to identify for replacement. Now you have 180 days to close on that new farm from when the relinquish property was sold. So 180 day window to recognize the farm. Execute the contract and take the money that you made from selling your one farm and put it in to buying your next farm. That's a 10 31 tax-deferred exchange. What did you defer though? Here's what you deferred. Let's pretend you bought a farm at a thousand dollars an acre and now it's worth $10,000 an acre. There's a $9,000 gap there in the middle. That's your gain. $9,000 per acre, you're gonna pay. 20, uh, about 25%. It varies person to person. I'm not a tax accountant, but here's what you need to know. 15% federally is the current rule for, uh, IRS code. So you're gonna pay 15% on any of that gain. Now a lot of people forget about net investment tax. That's 3.8% more that helps to go, uh, pay for the Affordable Care Act. Okay, so now we're at 18.3%, but then you also have your state of Iowa tax. State of Iowa tax ranges around that 8% range. But there are some rules, um, that you can avoid the state of Iowa tax if you materially participate in the farm operation. So the whole thing that you need to know about 10 31 is can I avoid taxes for a short period of time? So let's reword that. Can I defer taxes for a short period of time? If I sell a piece of property and buy a like-kind piece of property? Yes, you can. There's a lot of rules to it and you have to be thinking about it before you start the process of selling your farm. So we'd love to talk with you more about it. Um, we work with, uh, I p e 10 31 Exchange. Um, they are the experts in the industry. We can hook you up. We have the right people to do it. We do 'em every day. David Whitaker | Iowa Land Guy Read More

What is a Transfer Tax?

What is a Transfer Tax?

What is a Transfer Tax? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. What the heck is Transfer Tax? Transfer tax or revenue stamps is something that the state of Iowa charges. When you transfer your land from one person to another person, how much does it cost? It's a dollar 60 per thousand dollars that your farm sells for. So if you sell for a thousand dollars, It's a buck 60. If you sell for 1,000,006, well do the math. Divide it by a thousand and multiply times one 60. That's what transfer tax is. The state of Iowa helps their revenue by getting a transfer tax or revenue stamps. David Whitaker | Iowa Land GuyRead More

 Sell Farmland with Ease and Confidence through Iowalandguy.com

Sell Farmland with Ease and Confidence through Iowalandguy.com

Sell Farmland with Ease and Confidence through Iowalandguy.com If you're considering selling your farmland, you know that finding the right buyer and navigating the intricacies of the selling process can be challenging. But fret not! Iowalandguy.com is here to help you sell your valuable agricultural land with ease and confidence. With our expertise in the Iowa farmland market and a commitment to exceptional service, we'll guide you through every step, ensuring a smooth and successful transaction. Why Choose Iowalandguy.com for Selling Your Farmland? At Iowalandguy.com, we understand that selling farmland is a significant decision that requires careful attention and expert guidance. Here's how we can assist you throughout the selling process: Extensive Reach and Exposure: When it comes to selling your farmland, reaching the right audience is crucial. With Iowalandguy.com, your property will gain extensive exposure to potential buyers. Our website showcases a diverse range of agricultural listings, attracting buyers actively searching for farmland opportunities. Your property will receive the attention it deserves, increasing the chances of finding a suitable buyer quickly. Professional Marketing Strategies: We know that showcasing the unique features and potential of your farmland is essential to attracting buyers. Our team of marketing experts at Iowalandguy.com will create a compelling listing that highlights the strengths of your property. Through captivating descriptions, high-quality imagery, and detailed information, we'll present your farmland in the best possible light, captivating the interest of prospective buyers. Knowledgeable Guidance: Selling farmland involves various considerations, from determining the right price to understanding legal and regulatory requirements. With Iowalandguy.com, you'll receive the benefit of our experienced team's knowledge and expertise. We'll provide you with accurate market insights, guide you through the valuation process, and help you set a competitive yet fair price for your farmland. Our goal is to empower you with the information you need to make informed decisions that align with your selling objectives. Personalized Support: At Iowalandguy.com, we prioritize your needs and goals throughout the selling journey. We take the time to understand your unique circumstances, allowing us to provide personalized support tailored to your requirements. Our friendly team is always ready to address your concerns, answer your questions, and offer guidance at every stage of the selling process. With our support, you can feel confident and assured that your farmland sale is in capable hands. Selling your farmland doesn't have to be a daunting task. With Iowalandguy.com by your side, you'll have access to a platform that connects you with the right buyers and provides expert guidance throughout the selling process. Trust in our extensive reach, professional marketing strategies, knowledgeable guidance, and personalized support to ensure a successful sale. Visit Iowalandguy.com today and embark on your journey to selling your farmland with ease and confidence.Read More

How Land REALTORS® Can Leverage Chat GPT for Their Benefit

How Land REALTORS® Can Leverage Chat GPT for Their Benefit

How Land REALTORS® Can Leverage Chat GPT for Their Benefit The world of real estate is constantly evolving, and with advancements in technology, real estate professionals are increasingly looking for innovative ways to streamline their processes and gain a competitive edge. One such technology that has gained traction in recent years is Chat GPT (Generative Pre-trained Transformer), a language model developed by OpenAI. Chat GPT is a powerful tool that can be used by land REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® to enhance their marketing efforts, improve customer interactions, and save time and resources. So, how can land REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® leverage Chat GPT for their benefit? Let's take a closer look at some of the ways Chat GPT can be used in the real estate industry. AI-written Property Descriptions One of the most time-consuming tasks for REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® is creating property descriptions. Chat GPT can significantly reduce the time and effort required to generate property descriptions by automatically generating high-quality, AI-written content. REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® can input basic property details, such as location, size, features, and price range, into Chat GPT, and it can generate a detailed property description in a matter of minutes. For example, consider the following AI-written property description for a vacant land property: "Welcome to your dream piece of land! Located in the serene countryside of [location], this spacious [size] acre property offers endless possibilities. With its prime location, this land is perfect for building your dream home, starting a hobby farm, or creating your own private oasis. The property features [list of features], providing ample opportunities for outdoor recreation and relaxation. Don't miss this rare opportunity to own a piece of paradise in [location]. Contact us today for more information!" This AI-written property description provides a compelling and engaging overview of the vacant land property, highlighting its location, size, features, and potential uses. It can serve as a starting point for REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® to further customize the description based on their clients' needs and preferences, saving time and effort in the process. Enhanced Customer Interactions Chat GPT can also be used to enhance customer interactions and provide personalized experiences. REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® can integrate Chat GPT into their websites or social media platforms to engage with potential buyers and sellers in real-time. Chat GPT can answer frequently asked questions, provide property information, schedule property tours, and even assist with negotiations. It can also collect data from customers, such as their preferences and budget, to provide tailored recommendations and improve the overall customer experience. For example, a potential buyer visiting a realtor's website can use the Chat GPT feature to ask questions about a property, such as "What are the nearby amenities?" or "What is the zoning for this property?" Chat GPT can provide accurate and relevant responses, helping the buyer make an informed decision. This level of personalized interaction can enhance customer satisfaction and increase the likelihood of converting leads into clients. Time and Resource Savings Another significant benefit of using Chat GPT in the real estate industry is the time and resource savings it can offer. As mentioned earlier, creating property descriptions can be time-consuming, and REALTORS® often need to generate multiple descriptions for different properties. By utilizing Chat GPT, REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® can automate the content creation process, allowing them to focus on other important aspects of their business, such as building relationships with clients, negotiating deals, and closing sales. Additionally, Chat GPT can help REALTORS® streamline their lead generation efforts. By engaging with potential buyers and sellers in real-time, Chat GPT can collect valuable data, such as contact information and property preferences, which can be used for targeted marketing campaigns. This can save REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® time and effort in manually collecting and managing leads, and help them identify high-potential leads for further follow-up. This article was contributed by David Whitaker, ALC of Whitaker Marketing Group. It's 100% written by Chat GPT. REALTORS<span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">® <span calibri",sans-serif"="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font: inherit; vertical-align: baseline;">replaces Chat GPT's original text "Realtors" for branding purposes.Read More

Unlock the Power of Online Marketing for Your Farmland with Whitaker Marketing Group

Unlock the Power of Online Marketing for Your Farmland with Whitaker Marketing Group

Unlock the Power of Online Marketing for Your Farmland with Whitaker Marketing Group In today's digital age, the internet has become a powerful tool for connecting buyers and sellers in every industry. The world of farmland sales is no exception, and it's crucial to leverage the vast potential of online marketing to reach potential buyers effectively. Whitaker Marketing Group is your trusted partner in maximizing your farmland's exposure and ensuring a successful sale. With our robust digital footprint and expertise in online marketing strategies, we can help you connect with interested buyers who are actively searching the web. Harnessing the Power of Digital Footprint when Hiring a Farmland Broker: When it comes to marketing your farmland, having a strong digital presence is essential. Whitaker Marketing Group understands the importance of an extensive digital footprint and employs a variety of strategies to showcase your property to the widest audience possible. Our team will create a visually stunning and informative website dedicated to promoting your farmland, complete with high-quality images, detailed descriptions, and other relevant information. We ensure that your property stands out from the competition, capturing the attention of potential buyers. Search Engine Optimization (SEO) and Indexing specific to Iowa Farmland for sale: To ensure that your property gets maximum exposure, we employ search engine optimization techniques that make it more likely for your farmland listing to appear at the top of search engine results. Our experts analyze industry trends, conduct keyword research, and incorporate those keywords strategically into the content. By optimizing your online listing, we improve your chances of attracting qualified leads who are actively searching for farmland to purchase. Indexing with Google and Bing: At Whitaker Marketing Group , we understand the importance of ensuring your farmland listing is indexed by search engines like Google and Bing. We utilize the latest webmaster tools and techniques to ensure that your listing is discoverable by search engines, maximizing its visibility to potential buyers. By implementing effective indexing strategies, we increase the likelihood of interested parties finding your listing quickly and easily. Targeting Buyers on the Web when selling your family farm: Gone are the days of relying solely on local classified ads or print publications to attract potential buyers. Nowadays, buyers actively search the web for properties, and Whitaker Marketing Group specializes in reaching these individuals. We leverage various digital marketing channels, including social media platforms, online classifieds, and industry-specific websites, to target buyers who are specifically interested in farmland. By utilizing these channels, we expand the reach of your listing, attracting a diverse range of potential buyers from across the globe. In today's digital landscape, online marketing is the key to unlocking the full potential of your farmland sale. Whitaker Marketing Group understands the importance of a robust digital footprint and employs advanced strategies to ensure your property gets the attention it deserves. With our expertise in search engine optimization, effective indexing, and targeted online advertising, we can connect you with interested buyers actively searching the web for farmland. Trust Whitaker Marketing Group to take your farmland marketing to new heights and achieve a successful sale. Contact us today to discuss how we can help you sell your farmland efficiently and effectively.Read More

Attention all investors and Farmers who want to grow!

Attention all investors and Farmers who want to grow!

Attention all investors and Farmers who want to grow! MARCH 2023 IOWA FARMLAND VALUE | IOWA LAND GUY The land market in Iowa is standing strong and presents an exciting opportunity for profit. In March, a large number of acres hit the market, and while auctions have slowed in April, I predict that more acres will be available after planting season. As I've mentioned before, the markets are driven by emotion, and with the current strong sentiment among farmers, we're seeing strong prices that you don't want to miss out on. Despite concerns from some young farmers about high land prices, the truth is that a significant portion of farmers have already paid off their land, updated their equipment, and are looking to expand their operations. Additionally, we've seen an increase in net farm income, along with government support through PPP and MFP payments. And let's not forget about the jump in commodity prices and historically low interest rates! All these factors combined indicate that the agricultural sector is poised for growth, and the land market is a great place to invest. I'm bullish on the land market in Iowa. It's a resilient market that's full of opportunities for savvy investors/farmers like you. Don't miss out on this chance to make a profit! Iowa Results: Results from the 38 Auctions (3,346 acres) this last year have the average for the state at $11,899/acre, high quality ground at $13,882/ acre, and medium quality ground averaging $9,928/ acre. Low quality ground has remained steady at an average of $6,878/ acre Our Mission; Is to be your “Trusted Advisors”, Our obligation; is to market your farmland to the largest audience yielding you the most successful outcome! David & Ann Whitaker | Iowa Land Guy When you think of Farmland Think of US! Iowa Land Values by CSR Score: Green= 75-100CSR Tan=50-75CSR Orange= less than 50CSR Farmland in Iowa by Acres Sold Farmland Values in Iowa across the stateRead More

What is my farmland worth?

What is my farmland worth?

What is your farm worth? Top 50 Questions about Farmland Hey, it's the Iowa Land guy, and here's the top 50 questions that I get asked about farmland. What is your farm worth? Wow, what a loaded question. There are so many things that go into a farmland valuation, from shape topography to slope soil type, neighbors are a big one, but, in Iowa, we base a lot off of CSR score. So again, 1978, you'll find out in one of our other videos. That, uh, Iowa State came up with a CSR score and it's basically a scoring system. Worst of first, how good is your farm's productivity? So the better the CSR score, oftentimes the better the price of your farmland. In Iowa, there are websites out there that might tell you, uh, here's a generic value of what we think your farm is worth. But, it's a generic calculated value of an algorithm. I'm gonna tell you, don't trust it. It's like a Zestimate on Zillow. It's not necessarily a hundred percent accurate. You want to get with a trusted farmland professional and get a set of eyes on the farm because no two farms are created equal. Good example. I sold a farm once, and then I sold another one five miles away and they brought a $4,000 difference. How important is how the farm lays the farm ability? How easy is it to farm and who are the neighbors? Um, and what is the current market? Uh, give another example. The market has changed about 37% over the last year and a half. Wow. That's a big change, a lot of online calculators can't keep up with that. Even some of the surveys that come out can't keep up with the current market conditions. You want to hire a trusted professional to get you a number on what your farmer's worth. I want to also add, uh, of course, you can go to our website@iowalandguide.com and we offer a, what is my farm worth, uh, valuation, where we'll give you a little insight to what it looks like and what you know, how good your farm is. We like to put those together in a chance to earn your business. David Whitaker | Iowa Land GuyRead More