In this article we have a look at the options that are available to you and how to go about selling your farm.
Different types of sales
When looking to sell your farm you will need to decide which is the right choice for you. Will you sell the land and the assets separately, or sell it as a working farm?
Farms most likely run as very complex businesses where the equipment and land are all integral to its running. Therefore, selling your farm with the assets included will be preferable to someone looking to buy the farm as a business.
There might be some equipment on the farm that is not used, however, that you could sell separately in order to increase the profit that you make- as long as the equipment is not used for the running of the farm.
On the other hand, you can sell the assets and land separately. In this situation, it might be possible to get a higher profit. You will need to have your assets and land carefully evaluated in order to get a valuation of them.
Alternatives to selling
Farming is a physically intense vocation. You may be looking to move on but not want to give up your farm entirely. In this case, there may be a family member that you can hand over to.
Handing over to a family member will not, however, be smooth sailing. And, although every situation is different, it is a good idea to have agreements in writing and to consult professionals in the process.
Increase the value before you sell
No matter what kind of sale you go for, there are a few things that you can do to increase its value.
One of the easiest ways to do this will be to improve its appearance. These can usually be quite minor things that will make a difference to the first impression that a buyer has when they see your land.
For example, you can:
- Remove any junk that has collected over the years.
- Clear away unnecessary overgrown plants and weeds.
- Add and fix fences.
- Fill in potholes and plant grass in areas that it has eroded.
Selling your farm
You will need to have all your paperwork in order for any potential buyers with five years of cropping records and as least three years of yields records. You should have your soil tested so that you can present these results to potential buyers as well as details of any improvements you have made recently.
It can be useful to get the help of professionals to guide you through the sale. Find people that you trust that have the right kind of experience.
The process of selling your farm will take a long time from beginning to end. Try not to lose steam and keep your eye on the end goal. For more information, click here.
Bruce Hakutizwi is the U.S. and international accounts manager for BusinessesForSale.com, the world’s largest online marketplace for buying and selling small and medium size businesses. Bruce has over seven years’ experience working within the U.S. business transfer marketplace connecting buyers and sellers.