We Sell Farm & Ranch Real Estate...Differently

LAND NEWS > Fall 2018 • Issue 23

Newsletter Fall 2018

 

Marc Reck

AN UPDATE ON LAND VALUES
LAND VALUES • COMMODITY PRICES • INTEREST RATES COMPARISON
YEARS 2000 - 2018


This past year has been an active one. Since the last newsletter, we have closed on 101 transactions, conducted 18 live and online only auctions, and continued to sell properties by private treaty. Of the 101 transactions, 48% were estates, 21% were to reduce debt, and 31% due to divorce settlement, dissolution, or retirement. Of the buyers, 71% were operators from within a 20 mile radius of the property and 29% were from outside the area. Fifteen of the sales included trades or 1031 tax deferred exchanges with either the seller exchanging out of or the buyer exchanging into the property.

Land values remain relatively stable and will vary from sale to sale. Values vary as a result of: 1) Commodity prices, production expenses, interest rates and cash flow; and 2) Condition, quality, reputation and location of the property. What is important for the investor is rate of return. What is important for the operator is: 1) Added expense of production; 2) How will the property fit into my operation; and 3) Being cautious not to place themselves into a financial situation that may jeopardize their operation. In my opinion: 1) Land values will likely remain stable; 2) With interest rates slowly increasing, reports of record crop production, drought conditions worldwide, and pending export, trade and tariff talks, commodity prices are very fluid and creating uncertainty with land values; 3) Even if we see positive commodity prices this fall and winter, we will need to see confidence of sustainability of these prices and cash flow before values will trend upward.

If you are a Nebraska landowner and considering selling, please note the enclosed article regarding the September 1 deadline for notice to terminate farm leases in Nebraska.

In closing, if you are considering selling or buying farm and ranch real estate, we welcome the opportunity to visit with you. What differentiates Reck Agri Realty & Auction is our: 1) Experience and staff to handle any transaction; 2) Aggressive marketing and advertising of your property; 3) Buyer and client database to draw from; 4) Experience with 1031 tax deferred exchanges and 5) We provide a CHOICE, whether to sell by private treaty, live auction, or online only auction to maximize value and/or to solve your situation.

To assist us in better understanding the needs of our clientele, we have included a survey to be filled out and returned. We appreciate you taking a few minutes to complete this survey. We will give away 3 - $100 Visa gift cards on September 17, 2018, drawing from a pool of completed surveys returned to us. You can either complete the survey online - just look for a link on our site (www.reckagri.com) or return the enclosed postage paid survey by mail.

 

 

LAND NEWS - FALL 2018

In This Issue...
Grateful Reflections
Update on Land Values

Survey - Cash Prizes
Notice to Terminate Farm Lease
Considering Selling?

See Past Land News Publications