What is the best time of year to sell?

What is the Best Time of Year to Sell?

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 is the best time to sell my farm? I get asked this question all the time. Well, should we do it after we serve lease termination in September? Well, maybe that's a good time. Um, do we sell it in the summer? I mean, there's crops in the ground.

Maybe they're not out yet. Should we wait till after harvest? Uh, should we sell it, uh, in the new year for tax reasons? There's lots of ideas to this. So all of the old boys that I learned from always used to say. Full bins sell farms. So what do I mean by bins? If you don't know, uh, a grain bin. So where do the farmers keep their grain?

Full bins sell farms. Their commodity or their crop is a bin of corn or beans, soybeans in Iowa. If that's the case, that means do they have jingle in their pocket? Do they feel like it was a good year? So full bins sell farms. So a lot of the argument has been, do we sell them at the end of the year or after harvest?

Yep, that's a good time to sell. Well, what about, uh, if we need the money sooner than that? Can we sell or are we leaving money on the table? The difference in farmland versus any other asset is this. Let's say that they're bidding on a combine. They're like, man, I really don't have the money right now. I really want to buy that combine, but I just don't think it's the right time.

Um, they can find another combine. Two weeks later, eight weeks later, four months later, two years later. How many times do they have the opportunity to buy your farm? Not very many. Most farms don't ever change hands except once a generation. So, the difference is if they want to buy your farm and you decide to have it on February 10th or July 5th or October 26th.

They need to buy your farm when you're selling the farm. So when is the right time to sell your farm? It's when you're ready to sell your farm. Every farmer slash seller or any seller rather has a different motivation of why they want to sell the farm. Maybe there's time limits to a 1031 tax deferred exchange.

Maybe there's tax implications for the end of the year that they need to sell. Maybe we want to sell it because somebody just passed away and we want to finish their estate. So, when is the right time to sell your farm? When you are ready to sell the farm is the best time. Now, I'm going to argue That maybe into January, February, March, April is a really good time to sell your farm because all the farmers are working on getting their contracts for, um, seed.

And how much seed do they need to put in the ground? They'd like to know if they're going to farm your farm this year or not. So, good time to sell, maybe after harvest. Uh, after they've done their taxes or working on their taxes, a January, February, March era, and they know, they've talked with their, uh, accountant, and they know where their budget sits.

Now, we have really educated buyers that know where their budget sits, that are motivated to farm more land. I think that's a great time. to sell your farm. So, I'm a fan of a January, February, March auction. But, any time of year is a good time of year to sell your farm. Now, what does the data say? The data tells me that November is actually the largest month, or the most volume of farmland moves in November.

Why is that? Was it because full bins sell farm? Or, is it just cause and effect? When do we serve lease termination? We serve lease termination in September. So, if the family decided to sell in September, serve lease termination, probably talked with an auction or a real estate firm, they started doing marketing, when do we sell it?

Probably November. I don't know if it's cause and effect or is it just because, um, that's when the most farms move historically. But, by the data, that's when the most farms are sold. Now, there is such a thing as supply and demand. Supply and demand. Do we want to sell our farm when there's a threat?

Thousand other acres on the market in the same county? Well, maybe, maybe not. Is our farm better than the other farm? Maybe. Maybe not. Things to think about. Lots of reasons. We make a decision when we're talking with you about when the best time to sell your farm is. But I'm gonna go back to when the time is right for you, the seller.

That's the best time to sell your farm.

 Hey, it's the Iowa land guy. And here's the top 50 questions that I get asked about farmland. When is the best time to sell my farm? I get asked this question all the time. Well, should we do it after we serve lease termination in September? Well, maybe that's a good time. Um, do we sell it in the summer? I mean, there's crops in the ground.

Maybe they're not out yet. Should we wait till after harvest? Uh, should we sell it, uh, in the new year for tax reasons? There's lots of ideas to this. So all of the old boys that I learned from always used to say. Full bins sell farms. So what do I mean by bins? If you don't know, a grain bin. So where do the farmers keep their grain?

Full bins sell farms. Their commodity or their crop is a bin of corn or beans, soybeans in Iowa. If that's the case, that means do they have jingle in their pocket? Do they feel like it was a good year? So full bins sell farms. So a lot of the argument has been, do we sell them at the end of the year or after harvest?

Yep, that's a good time to sell. Well, what about, uh, if we need the money sooner than that? Can we sell or are we leaving money on the table? The difference in farmland versus any other asset is this. Let's say that they're bidding on a combine. They're like, man, I really don't have the money right now. I really want to buy that combine, but I just don't think it's the right time.

Um, they can find another combine. Two weeks later, eight weeks later, four months later, two years later. How many times do they have the opportunity to buy your farm? Not very many. Most farms don't ever change hands except once a generation. So, the difference is if they want to buy your farm and you decide to have it on February 10th or July 5th or October 26th.

They need to buy your farm when you're selling the farm. So when is the right time to sell your farm? It's when you're ready to sell your farm. Every farmer slash seller or any seller rather has a different motivation of why they want to sell the farm. Maybe there's time limits to a 1031 tax deferred exchange.

Maybe there's tax implications for the end of the year that they need to sell. Maybe we want to sell it because somebody just passed away and we want to finish their estate. So, when is the right time to sell your farm? When you are ready to sell the farm is the best time. Now, I'm going to argue That maybe into January, February, March, April is a really good time to sell your farm because all the farmers are working on getting their contracts for, um, seed.

And how much seed do they need to put in the ground? They'd like to know if they're going to farm your farm this year or not. So, good time to sell, maybe after harvest. Uh, after they've done their taxes or working on their taxes, a January, February, March era, and they know, they've talked with their, uh, accountant, and they know where their budget sits.

Now, we have really educated buyers that know where their budget sits, that are motivated to farm more land. I think that's a great time. to sell your farm. So, I'm a fan of a January, February, March auction. But, any time of year is a good time of year to sell your farm. Now, what does the data say? The data tells me that November is actually the largest month, or the most volume of farmland moves in November.

Why is that? Was it because full bins sell farm? Or, is it just cause and effect? When do we serve lease termination? We serve lease termination in September. So, if the family decided to sell in September, serve lease termination, probably talked with an auction or a real estate firm, they started doing marketing, when do we sell it?

Probably November. I don't know if it's cause and effect or is it just because, um, that's when the most farms move historically. But, by the data, that's when the most farms are sold. Now, there is such a thing as supply and demand. Supply and demand. Do we want to sell our farm when there's a threat?

Thousand other acres on the market in the same county? Well, maybe, maybe not. Is our farm better than the other farm? Maybe. Maybe not. Things to think about. Lots of reasons. We make a decision when we're talking with you about when the best time to sell your farm is. But I'm gonna go back to when the time is right for you, the seller.

That's the best time to sell your farm.

David Whitaker | Iowa Land Guy