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Tips for preparing to sell farmland

Tips for preparing to sell farmland

Researching farmland sales in the area may be beneficial

By Diego Flammini
Staff Writer
Farms.com

Producers should consider multiple factors when deciding to put farmland up for sale and should turn to experts for advice.

Sellers should consult their accountants early in the process, said Peter Maloff, broker of RE/MAX Southwestern in Coleman, Alta.

“Sellers should have a good meeting with their accountants and go over everything very thoroughly because there could be capital gain and tax issues depending on the circumstances of the sale,” he told Farms.com. “For example, if someone sells a few parcels of land, they are still GST applicable and it’s the seller’s responsibility to address the GST implications.

“If there’s a homestead on the farm, the seller could sell the land to someone and the home to someone else.”

Producers should be prepared to spend money on property maintenance before a sale.

Like when selling a home, investing in repairs or renovations can help farmland owners see bigger returns on the sale of their farms, Maloff said.

“It’s worthwhile to put extra time to make sure fences are good and barns are in good shape,” he said. “Simple things can add considerable value to the property.”

Researching farmland sales in the area may be beneficial as well.

Having a real estate professional complete a competitive market analysis can give sellers important insights.

A market analysis is different than an appraisal, Maloff said.

“The document will show where the property is going to be advertised, how much commission is going to be charged and maybe three or four comparables to make sure the property isn’t over or underpriced,” he said.

“Someone who is licensed by the Appraisal Institute of Canada does an appraisal.”

Farmers could have to disclose production practices in the sale process.

Many financial institutions representing buyers will send questionnaires asking for specific pieces of environmental information, Maloff said.

“The questionnaire could ask questions like if the farmer has used any pesticides or herbicides and which ones,” he said. “If it’s arable land, you could have to disclose what your crop rotation is and if pasture land is overgrazed. The questionnaire could ask if there are any buried tanks on the property or if there have been any oil leaks.”

Sellers may also want to take the time to ensure adherence to municipal laws and regulations.

Having a land survey done can ensure the necessary information is up to date, Maloff said.

A land survey “can be expensive, but it’s always best if the seller is proactive and provides (the buyer) with the survey,” he said. “If you have a drift fence and someone thinks it’s a property line but it actually isn’t, it could create complications and potentially an upset buyer.”


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US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops

Video: US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops


A dry August and a “flash drought” in the ECB (Eastern Corn Belt) the driest top 10 to 15 years in 150 to 160 years (Ohio the driest in 133 years) plus disease is taking a bite out of the 2025 U.S. corn and soybean crops.
It's going to be an early harvest. This could be the start of the 89-year drought cycle that may have been delayed until 2026 as La Nina maybe returning.
The USDA September crop report is all about record corn ears and record soybean counts but the October USDA crop report will be about pod and ear weights.
Stats Canada reported higher forecasts for the 2025 Canadian Prairies all wheat and canola crops vs. last year based on satellite imagery but are they overestimating production?
The 2025 Great ON Yield Tour and Quebec crop tours are projecting corn and soybean crops below the 10-year average.
China's Vice Commerce Ministry Li Chenggang visits Washington this week as we continue to connect the dots is a positive sign towards a China/U.S. trade deal. But will U.S. farmers have a winter without China as they buy more soybeans from Uruguay/Argentina? U.S. Northern Plain soybean farmers are seeing red with flat prices at $8.97/bu!
U.S. corn exports on record pace up 99% vs. last year.
Fund short covering continues in corn futures bottom is in!