Have you been spotting a number of land auction signs popping up in Southern Indiana lately?
William Wilson Auction Realty is contracted to represent more than 1,500 at public auctions before the end of the year with hundreds of other acres that are near contract.
What is driving the flurry of land sales? Generational transfer. The fact is, almost every farm is transferred each generation. Many of our clients are ones we have worked with for years, appraising and advising them on their land holdings. Some farms are sold/transferred on paper, while others are sold on the open market.
Many view now as the perfect opportunity to exit their farmland investments, to settle their family estates and transition into other investments that make more sense to their individual portfolio. Why now? Of course, some gain the benefit of a stepped up basis in value upon the death of one generation, so they avoid a capital gain and the tax that follows.
Other families aren’t so lucky, as they become forced to sell the farm to care for an aging parent.
And yet, still others just simply cannot agree about owning the farm together and so they resort to selling it to buy out other family members.
The Purdue Agricultural Economics Farmland Values Study, which we participate in each year, will show that values remain stable across all of Indiana in all land categories.
Of course, location, productivity and other characteristics ultimately determines the value of each farm tract. But the fact is, farmland investment is still viewed very favorably by a buyer base that remains strong.
We predict that values will remain stable in the upcoming year. But we also predict that you will continue to see more land on the market.
As a second generation business who has represented tens of thousands of acres over our 35-year history, we have the benefit of knowing exact details about farms across the region. We can also analyze each tract more closely now with specialized software and mapping tools we employ.
Call our office via 812.682.4000 and ask for Andrew or Aaron to inquire about your farm today.