Selling farm

[jhwis]

Yes sir. I will still do 60 acres of hay on some ground I been renting for years

It's a great tractor.

 

[Pete-IN]

May I suggest Schrader Auction Company of Columbia City Indiana 800-451-2709. They sell farm land all over the USA with great results for the seller. I do know some of the employees, but I have no idea of what they charge. They sell about 90% of the farm ground in IN, OH, and MI. They get to the Dakotas and Colorado, and many other states. As full disclosure, I have no financial interest in the company. Just trying to be helpful.

 

[teddy52food]

Check Al Wessel at Sauk Center. I think it is Mid American auction service.

 

[DRussell]

Yes sir. I will still do 60 acres of hay on some ground I been renting for years

I don't understand why you are renting when ground you own, partially own at least, is available to you.

 

[flying belgian]

I don't understand why you are renting when ground you own, partially own at least, is available to you.

The ground we own is very productive corn and soybean farmland and we get above average rent. The ground I rent is poor quality irregular small pieces and can only be used as hay ground and I pay much below average rent.

 

[730 virgil]

ask around your area you might be surprise who would be interested on your farm local banker might be a big help.
be aware of capital gains tax. when i sold I took in the shorts I could have got more money but why more money to Big Government

 

[BarnyardEngineering]

Sad to hear.

I hope another small farmer buys it and your family does well on the sale.

Those are mutually exclusive concepts. A small farmer isn't going to get it unless you give it away, and if you give it away the family is not going to do well on the sale.

It just doesn't pencil out. Don't know where this is or what land is going for but the value of the property could be anywhere from $1,000,000 to $4,000,000. There is very little you can grow on 250 acres that will make the payments on that kind of money. Only BTOs have the credit and cashflow to absorb that kind of expense. You'd have to be some sort of wacky retired independent multi-millionaire to be a small farmer with land prices like this.

I would like to buy my parents' farm and be a "small farmer" but my two siblings want their shares of the fair market value sooner rather than later. The farm is about 230 acres (about 100 tillable) and I think $300,000 each would make them happy. You tell me how I'm supposed to make monthly payments on $600,000 off of a 230 acre farm. You tell me what bank would loan a 50 year old fat guy $600,000 based on my income and the "earning potential" of the farm. I've already talked to my financial advisor and she's told me that no bank would take that on.

There just doesn't seem to be a solution other than to sell to the highest bidder and walk away.

 

[db4600]

Well that's going to be tough because I'm 1 mile from the city limits of North Mankato and we want to get as much $$ as we can.

I always considered you east of Nicollet.

 

[Bruce from Can.]

Another way to sell farm tea estate that is becoming very popular these days is to sell by sealed tender. Your Lawyer sets up a contract with purchase terms to your liking, and offers the real estate to public tender for a fixed period of time. If no one reach’s your minimum bid price, property doesn’t sell. Odds are it will be one of your close neighbours that will end up buying the property, regardless of the method of sale. And you will need a Lawyer working for you during the sale process anyway. The advantage is you don’t pay commission to an auction company or realtor. The market will determine the price, set a realistic reserve price and watch the neighbors bid

 

[moresmoke]

Another way to sell farm tea estate that is becoming very popular these days is to sell by sealed tender. Your Lawyer sets up a contract with purchase terms to your liking, and offers the real estate to public tender for a fixed period of time. If no one reach’s your minimum bid price, property doesn’t sell. Odds are it will be one of your close neighbours that will end up buying the property, regardless of the method of sale. And you will need a Lawyer working for you during the sale process anyway. The advantage is you don’t pay commission to an auction company or realtor. The market will determine the price, set a realistic reserve price and watch the neighbors bid

I’m a bit further west than the OP. It’s not uncommon here for an agent to collect sealed bids, then the top 3-5 advance to open bidding in private.

 

[Mark-Mi]

I’m a bit further west than the OP. It’s not uncommon here for an agent to collect sealed bids, then the top 3-5 advance to open bidding in private.

Been doing it that way here for as long as I can remember. One attorney did most of em. He is retired and now his son and daughter both attorneys have taken over.

 

[flying belgian]

I always considered you east of Nicollet.

Nope. Rubbing fence lines with city of north Mankato

 

[Goose]

Is there any chance to sell it privately?

In 2012, my late sister and I decided to sell most of our family farm. We each owned an undivided half, and for our own estate planning the simplest was to simply sell it and split the money. I approached a neighbor's wife one evening, and the next afternoon he stopped in with a loan agent from a farm credit association. We sold it on the spot and got our price with no haggling.

 

[stevieb49829]

I didn't mean it to sound sad. My youngest sister is 63, my oldest sister is 77. There are 6 of us. We all agree it is time to cash in on the wonderful inheritance we received from our parents. Since I'm the only one with a recent farming background they asked me to figure out how to get the most $$ That's why I'm reaching out to the experience of this group.

Do you have a way of figuring out a reasonable price? Other acreage selling nearby, etc? Is your renter interested? Other farms nearby? If you can't ascertain a price, I'd either hire an appraisal done, or at least a market analysis by a Realtor. I've got a pretty good idea where you are up on that side of the valley, and I'd agree - its going to a developer, whether you like it or not. steve

 

[chcase]

My Siblings and I have decided to sell our 250 acres of farmland by online auction. It is in Nicollet County Mn.
Any suggestions on which auction service to use?

Hopefully your renter is interested and able to buy it. The lawyer deal that Bruce stated has come alot more popular and less hassle. Around here we have a auction service (fourth generation) that can sell just about anything
Mainly on line as they have a very large following. Talk to your tax person

 

[stevieb49829]

Also besides their rate, what are some questions I should be asking?

An appraisal will do two things: get you started, and help satisfy the questions from your siblings.

 

[504]

Here it is divided in tracts and some will be farmed and some will have houses built on them and if it has some brush on it then it will be hunting ground. Big Iron/ Sullivan Auctions sells land all across the country.

 

[ss55]

Hopefully your renter is interested and able to buy it. The lawyer deal that Bruce stated has come alot more popular and less hassle. Around here we have a auction service (fourth generation) that can sell just about anything
Mainly on line as they have a very large following. Talk to your tax person

We seem to forget that without cities there would be almost no market for any farm products, just a farmers market in the local village, if that.

 

[Hoenes]

Here it is divided in tracts and some will be farmed and some will have houses built on them and if it has some brush on it then it will be hunting ground. Big Iron/ Sullivan Auctions sells land all across the country.

Yes. We used Sullivan when my Uncles farm sold. Divided it into 3 smaller tracts. It was written into the pre sales agreement, that the executors of the estate (my 2 cousins) had the right to reject any low ball bid. That didn't happen. Sullivan brothers did a great job. They're out of Hamilton, Ill, but as stated earlier, they sell all over the US.