NOW THAT YOU KNOW WHAT YOUR FARM IS WORTH — WHAT’S NEXT?

KEEPING THE FARM:

Lease— Who is your tenant going to be? Is the current arrangement written or verbal? How long has the current arrangement been in place? Is the lease at current market price? Is there any language as to time of lease? (How it ends, does it address double cropping, if pasture,does it address time in, time out and how many cows and calves?) Is there language to keep your farm’s soil in good condition? Leases need to be revisited and re-written every year.

Other Income— Does the farm have any other attributes that could bring in additionalincome for you and your family? Additional leases for recreational use can add value to yourfarm-they can also create liability.

Improvements— Is there water availability to develop for irrigation? Is there surface water that can be developed for ponds or a watershed lake? Water development always creates value.

Title— Are there other siblings involved? Are the interests divided or undivided? Undivided interests are very common and can create a whole host of problems. How will you take ownership: individually, or as an LLC or partnership?

Management of the Farm— Do you have the knowledge and the time to look after your farm,or will you need someone to look after your investment if you live out of town or out of state?These are just a few of the many situations we have helped clients and customers with.

SELLING THE FARM: Your tenant or family member wants to buy the farm; accurate valuation is the first step. Results is engaged to either negotiate on behalf of the owner, prepare contracts and close the deal, or in some instances the buyer and seller have worked out their own terms, but need help with contract preparation, title work, closing, and exercising 1031 exchanges.What are your plans for the sale proceeds? If the basis is stepped up, you should not have capital gains to pay. If you inherited the farm a while back, and your basis is lower than the market price today, an educated decision would need to be made as to whether to pay the capital gains or exercise an exchange.What are your options if you want to sell on the open market? There is no one size fits all forfarms! Experienced brokers can evaluate what would be best for the geographic location of your farm.

1031 Exchange— Results has helped exchange thousands of acres, both forward and reverse.