Selling farmland is a major decision that requires careful planning and consideration. Whether you’re looking to cash in on an investment or transition into a new opportunity, understanding the key factors involved in the sale process is crucial. During a recent episode of the National Land Podcast, CO Land Broker Shannon Schlachter spoke about the importance of preparing for a farmland sale and provided advice for landowners looking to sell their land. 

Here are three essential things farmland owners need to know before selling their land!

Understand Your Leasing Situation

One of the most important steps before selling farmland is understanding any existing lease agreements. Many farmland owners lease their property to farmers, and these agreements can have significant implications for the sale.

Know the Termination Dates

Most agricultural leases have set termination dates, often based on the crop cycle. Selling land with an active lease may limit your pool of buyers or affect the sale price.

Notify Tenants in a Timely Manner

If your land is leased, you must notify tenants well in advance about the sale and any lease termination, following state laws and lease terms. Also, if a tenant has already planted crops, they may have rights to harvest them even after the land is sold. Clarifying these terms in advance can prevent disputes and ensure a smooth transition for both the buyer and the tenant.

Prepare Your Financials and Tax Planning

Selling farmland is not just about finding a buyer—it’s also about ensuring you maximize your financial return while minimizing tax burdens.

Contact an Agronomist Before Selling Farmland

Understanding the value of your land is crucial. A market analysis can help determine a competitive asking price based on soil quality, location, and comparable sales in the area. An agronomist can also evaluate soil fertility, which plays a massive role in determining the fair market value of a farmland tract.

Consult an Accountant

Selling land can have significant tax implications, including capital gains taxes. An accountant can help you understand your tax liability and explore strategies such as 1031 exchanges to defer taxes on reinvested proceeds. Accountants can also help you develop a plan for your property and what you want to happen to it after you’ve passed away.

Work With a Land Professional

A successful farmland sale involves more than just listing the property—it requires strategic planning and professional guidance. Not all real estate agents specialize in farmland sales. Hiring an agent with experience in agricultural transactions ensures your land is priced correctly, marketed effectively, and attracts qualified buyers.

The best time to start preparing for a sale is in the spring, allowing enough time for due diligence, lease terminations, and marketing efforts. Many farmland sales occur in the fall and winter, so starting early ensures you are ready when the market is active.

Selling farmland is a complex process, but with the right preparation, you can avoid common pitfalls and maximize your return. If you’re considering selling your farmland, get in touch with your local Land Professional today!