Farmland Values

The number of sales happening has certainly slowed down in the last couple years, but for farmland, the values really haven't. The professional realtors at North Central Realty and myself have always worked hard to get good values for both sides of the equation, and 2010 has been no exception despite the recession.

Obviously land values vary greatly based on location and demand, and we work with a wide variety of landowners not just in Minnesota, but in Iowa, South Dakota, and other midwestern states as well. We keep track of our sales, and post some of them on our North Central Realty website. If sales in 2010 are any indication, farmland values are still going up.

In 2009, we had at least 2 farmland sales at more than $5,000 per acre - one in Renville County and another in Sibley County. We had several other properties sell for more than $4,500 per acre, including farms in Renville, McLeod, and Mower Counties in Minnesota, and Grant County, South Dakota. Just under half of the sales at North Central Realty were at $4,500 or above per acre in 2009.

So far in 2010, all of our sales have been over $5,000 per acre. This again includes farm property in Renville County, which was bought by a group of 2 farmers, as well as farms in Mitchell and Sac Counties in Iowa. If trends keep up, perhaps half or more than half of the North Central Realty farm sales in 2010 will go for over $5,000 an acre!

Please contact me to learn about our real estate services. I would be happy to help you sell your prime farmland for the best possible price!

Thanks,

Noah Hultgren

The FarmlandMan

http://www.farmlandman.com/

Good reasons to get your farmland appraised

With interest rates so low and farmland values so high, now seems like a smart time to have your farmland appraised by a real estate expert like me, the Farmland Man.

Cash rental rates have increased so fast over the last decade, it may be hard for you to know how fast the value of your land has gone up in comparison. Our appraisals are most useful for real estate financing, estate planning, settlements, or determining listing and sale prices.

I offer prompt, quality appraisals at an affordable price. All my appraisals comply with the Uniform Standards of Professional Appraisal Practices (USPAP), the most widely recognized set of standards in the real estate industry. I also follow the Uniform Agricultural Appraisal Report format that is widely recognized and accepted within the agricultural finance community.

I am a specialist in farm and rural real estate appraising, including:

• Rural residences


• Bare land


• Recreational land


• Grain handling facilities


• Other farm operations (dairy, hog, farrowing, nursery & finishing units)

If you are interested in selling your land, but you need to know the market value, please contact me the FarmlandMan, at 320-894-7528 or noah@farmlandman.com. I will provide quality help for a reasonable price.

Happy 4th of July!

I hope you all had a safe and happy 4th of July! I always enjoy the 4th with my family and friends, and I hope you were able to as well.

But the 4th also gets me thinking about our government, and taxes. Your house is one of the best tax-cutting assets, starting with deductions for all or part of your mortgage interest, any points you paid to get the mortgage, and your property tax payments can all cut your annual tax bill.

But perhaps the best tax-saving opportunity comes when you sell your house. Believe it or not, you may qualify to exclude all or part of any gain from the sale of your main home from your income. According to the IRS, to claim the exclusion, you must meet the following ownership and use tests:

* You must have owned the home for at least two years
* You must have lived in the home as your main home for at least two years

From there, if you have a gain from the sale of your main home you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

As a professional real estate agent, I can help you navigate this process and save taxes! What a great way to celebrate the 4th!

Happy Independence Day,
Noah Hultgren
TheFarmlandMan.com