When is the best time to sell your farm land?
The answer to this question is complex and ever-changing, but the short answer is “Right Now”!
When selling any business you want to do so when the business is most profitable and/or when the market conditions are in the favour of the Seller.
I was snowmobiling this weekend and I ran into one of my Dad’s friends at a warm-up shack. He said he is semi-retired and that his son is starting to take over the farm. He then said that 2022 was his most profitable year in his life!! I said you must have been more profitable in the “hay day” of the 1970’s and he said that actually last year was the best year he has seen in almost 50 years of farming! That is a powerful statement! Fortunately he has someone to take over his farm but for those of you that don’t you have an amazing opportunity to sell your land right now!
For those producers who were not as profitable last year, it is still an amazing time for you to sell as the market conditions are perfect! There are way more Buyers than Sellers and there are so few listings that Buyers are fighting over any listing. Multiple offer and selling prices over the full list price are common.
Although I remain bullish on farmland values long term, I am not as bullish on them short term. There are a lot of things working against farmland values right now which leads me to believe that we could have a short term “pause” somewhere in the future. Some of the factors that I see working against farmland values are:
-interest rates doubling in a very short time frame
-grain prices dropping substantially in the past several months
-uncertainty about the level of crop insurance that one will be able to solidify in the future
-a decrease in the number of investors participating in the market due to higher interest rates
-a market that has been going up, up and up for a very long time. History has shown us that every market will drop at some point
-we are at record low levels of farmland inventory on the market. This will have to change at some time. The average Saskatchewan farmers age is 56 which is very high, as an average! There are lots of famers in their mid-sixties to mid-seventies that will need to exit sometime soon.
-an increasing amount of risk for farmers, as they invest more money into their 2023 crop than they ever have before
If you have farmland and are considering selling at some point in the next few years you may want to consider selling now while the market is still HOT!
Of course, I do not have a crystal ball and would love to hear your thoughts on the market. Pick up the phone and call me anytime to “talk shop”.
Contact Ted Today!
Ted is always happy to meet new people and to explore new opportunities. He is your expert in the field!
Feel free to call 1-306-986-7255 or email firstname.lastname@example.org
For more information about Ted and the rest of the team, visit our website to download our Buyers and Sellers Information Packages and learn how the Cawkwell Group can be beneficial in helping you buy or sell farmland real estate in Saskatchewan!
Visit the website at www.cawkwellgroup.com. View current listings and to stay up to date with the latest farm news and farmland investment opportunities around Saskatchewan. You can also check out the Cawkwell Group on Facebook!