Farmland Transaction Considerations
October 29, 2021
Every year after harvest, farmers have time to assess the year’s results, look at their current situations, and plan their next moves. For some, winter is the time they decide to make big changes. Numerous indicators point to a higher-than-normal surge in farmland transactions in the coming months. The average age of farmers continues to rise, and with that comes increasing retirements due to age, health issues, or a desire to reduce the stress inherent with farming. With crop failures in many areas, in some cases coinciding with the evaporation of good off-farm jobs, there are also likely to be financial issues that necessitate the sale of land. Word amongst our business contacts active in the marketplace indicates that while banks and the taxation authorities have been patient during the pandemic, they are unlikely to remain so for much longer which would apply additional pressure to folks already under financial strain.
The good news - farmland values continue to be healthy. Even with challenging growing conditions in some areas over the last several years, land prices have continued to rise or at least stay more or less stable in most areas of the prairies.
People selling farmland are often justifiably worried they will not be paid the fair value of their land. We recommend seeking outside expertise from others who are active in farmland transactional matters whether that consists of consulting with a qualified lawyer, realtor, or appraiser in order to obtain peace of mind that a fair market value is received as part of any sale. At Serecon, we have provided valuations and realty services to hundreds of lawyers and advisors over the years who are agents for landowners throughout western Canada. Moreover, we continue with projects daily for lawyers and landowners needing professional appraisals from our consultants who focus on agricultural and rural properties of all types. When hundreds of thousands or millions of dollars are at stake, our clients see the value we provide to assist with decision-making by way of objective appraisals, realty services, and consultation on factors specific to the given property or assets.
To find out more, please reach us at 780-448-7440 // 403-216-2100 or email us here.