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January 21, 2019
In the United States, we have been and will continue to see a huge transfer of wealth from the WW II and Korean War generation to Baby Boomers and younger. The previous generation built and saved wealth that is now being passed down to their heirs. For many families, this includes agricultural land whether they are active in farming and ranching or are non-operating landowners. This is especially true in the grain belt states where you have expansive rural areas mainly dependent on agriculture.
To illustrate this, the Nebraska Community Foundation reported some years back that approximately 50% of the counties in the state would see the peak years of transfers of wealth during 2010-2019. These were all predominantly rural counties in which ag land would be a major percentage of the asset wealth of the county. This trend also points out the aging of the rural population that we see in most grain belt states. An example of this is Nebraska where 19% of the population is over 65, one of the higher percentages of neighboring states.
With the transfer of land comes the transfer of management of that land. If there is no one actively farming or ranching in the family, the inheritors of the land have decisions to be made whether to keep the land and rent it out or to sell the land and divide the money. This is the time that many new landowners seek professional advice to help them make decisions and to assist in carrying out the goals of the owners. The assistance can range from having an appraisal completed to understand value or facilitate a division of ownership to having the farm or ranch professionally managed so that all owners involved know that everything is being taken care of as they continue to own the land. Sometimes the family decides to sell and it is imperative to have sound advice and expansive marketing of the property to obtain the best price possible when selling. This is why more inheritors than ever are turning to Farmers National Company to handle the sale of their farm or ranch.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|