Author: genr8admin

This is a simple question with a complicated answer. What kind of auction format should I use? Are the market conditions right for an auction? Who should I have conduct the auction? These are all questions that are raised when considering selling your land via auction. At NextAg we guide you through this decision process and custom tailor our approach to you and your property’s needs. 

What kind of auction format should I use?

There are many ways to conduct an auction from a traditional auction setting to a more modern approach with Online Only Auctions. Let’s highlight a few options that we offer at NextAg and how they could pertain to your situation.

Simulcast Auction/Live Auction – A modern twist on the traditional auction setting, the simulcast/live auction method combines the traditional in-person auction with the online-only approach. The simulcast allows you to have an in-person auction where patrons can come in-person and bid while also allowing your bidders the chance to bid anonymously via our online bidding platform. 

Online-Only Auction – A simple, effective auction format that allows total anonymity for the bidders through our online bidding software. This auction method allows anyone from anywhere in the world with internet access to bid on your property. This method is usually timed and ends after all bidding has ceased for a set amount of time. 

Sealed Bid Auction – The sealed bid auction can be a very useful tool in the right situation. This method is a slower paced auction environment where bidders submit their bids on a standard bid sheet to us, here at NextAg. There is usually a deadline to submit bids and then we sit down with the sellers and either select a winning bid or we can invite back the top bidders to perform a small exclusive mini-auction of the top sealed bids. This method allows the sellers a comfortable, slower timeline to make their decision. 

Are the market conditions right for an auction?

Market conditions for agricultural land right now are strong. Higher commodity prices and unstable stock market conditions have driven up farmland prices in the Midwest. The ability to buy land in an instant via online auctions, etc. has also played a part in higher land sales. Auctions in the current market conditions allow for fast, efficient sale times resulting in top market values. 

Who should I have conduct my auction?

The NextAg advantage, when it comes to selling your property, is that we know how important this transaction is because we are landowners, as well. We are a family-owned and operated business with the owner himself raised on a multi-generational Nebraska farm where hard work and doing the right thing is the standard. Your farm and the generations of hard work and sacrifice do not go unnoticed when we are working with you and your family during this process. Our goal is to be honest, transparent, and strive to get you the best results for the sale of your farm.

How do we get the best results?

• Instant contact with thousands of landowners around your property with up-to-date mailing lists
• State of the art bidding software
• Efficient and effective marketing techniques
• Local knowledge of the area

Still have more questions or maybe you are ready to get started? Please reach out today! We are happy to answer any questions you may have and discuss your specific needs. You can also visit our website at, https://nextagrealestate.com/ or call us at, 402-540-0053.

As we have begun the negotiating season for land leases before next year it is always good to review these steps to make sure you have everything in place as a landowner for a successful crop season. As a normal practice, NextAg Appraisal & Realty, review these things each year for every client prior to drafting a new lease before each cropping season. The biggest thing to keep in mind as a landowner is transparency with your tenant and to make sure everyone is on the same page and understands the term and expectations of your farm lease. 

1. Determine Your Lease Termination Date

Here in the Midwest the normal lease term runs from March 1^st to February 28^th of the next year. Having a March 1^st starting date allows the farmer and landowner the opportunity to change any information at the farm service agency and with their crop insurance prior to the deadline of March 15^th for those entities. 

It is always a good practice to start any negotiations of changes to the lease after the first of the year to allow for some time before the March 1^st suggested start date of the new lease. 

2. Check Your Land’s Fair Market Rental Value

There are many resources out there to determine a fair market value rental rate. The University of Nebraska Land Survey is always a good resource to find a range of rental rates for your region of the state.

Having a tenant with good farming and fertility practices allows you to obtain fair market rents year in and year out, knowing your land is at top production. 

3. Have a Written Lease Agreement

As a land manager I always require a written farm lease that renews each year. A written farm lease allows for transparency of expectations to the tenant as well as the landowner. A written farm lease allows for termination without notice in Nebraska at the end of the lease term. Details to be include in the written lease are: lease term, rental rate and/or share terms, who maintains common areas, and who pays for certain expenses. 

A disadvantage of an oral lease is no hard expectations, room for discrepancy, and the requirement in Nebraska to give 6 months notice prior to changes or termination of the oral lease.  

4. Confirm Crop Insurance and Farm Program Signup

The deadline for any changes to crop insurance or farm program signup is March 15^th of the current crop year. Changes include: name changes, address changes, lease changes, etc. Always contact your crop insurance agent and the farm service agency to make sure everything is correct for the coming crop year. 

5. Think About Hiring an Expert

A farm manager is not for everyone but sometimes people don’t realize that they could benefit from the service. My goal as a farm manager is to get the full potential from a piece of property while working with the tenant to be efficient. Transparency between parties is also important when discussing the expectations of the landlord and tenant. Having someone that can speak the language while advocating on the landowners behalf can be very beneficial. 

Duties and Responsibilities of a Farm Manager

• Negotiate leases
• Collect income and pay expenses
• Maintain compliance with crop insurance, FSA farm programs, and CRP contracts (if applicable)
• Visit the property periodically and provide written reports
• Accounting reports to the owner of income and expenses

Please contact NextAg Appraisal & Realty about any of your land questions. In addition to farm management services we provide: 

Certified General Appraisals – certified in Nebraska, Iowa, Kansas, and surrounding states. Specializing in agricultural property both vacant and improved. 

Real Estate and Auctions – brokerage services are available in Nebraska and Iowa to sell your agricultural asset. NextAg has the most up-to-date online auction services, marketing services, and mailing lists to get the most for your property.

What do I need an appraisal for? Who can I get to do an appraisal? Will it complete within my deadline? These are only a few questions that come to mind when trying to figure out the burning question: Do I need an appraisal? 

My name is Ethan Sorensen and I’m a Certified General Appraiser in Nebraska, Iowa, and Kansas. I specialize in agricultural appraisals, both vacant land and ag commercial properties, in addition to utility towers and rural residential. 

The real estate market, post-COVID, has been unpredictable and very favorable to sellers. Interest rates have increased as of late but in the Ag world, we are not seeing a slowdown yet in farmland values or purchasing power here in the Midwest. Many investors and local landowners are taking advantage of good commodity prices and excess cash available to them. These factors make it hard for landowners to value their property, especially if they are contemplating a sale of their property or trying to gift/succession plan to the next generation. 

These increases in the market also makes it difficult for professionals such as lawyers, bankers, and accountants to get a real time picture of what that asset and the market as a whole is doing at any given time. 

So, do I need an appraisal?

Most commonly in my industry there are for common reasons to consider getting an appraisal:

1. Financing: Most lending institutions require an appraisal of assets over a certain value, especially loans that are going to the secondary market. 

2. Estate Valuation/Tax Planning/Gifting: Many estates need an appraisal to determine a new tax basis. The date of death value is needed to calculate capital gain tax at a later date, if the beneficiaries were to sell the property in the future. Estates may also be subject to state or federal tax depending on the value of the estate’s assets. 

3. Divorce: The division of assets in a divorce situation may need to be based on the current fair market value of the asset. 

4. Potential Sale: Landowners may want to know what their property is worth in the current market before they decide to sell. A lot of landowners sell their properties privately or to current tenants and therefore need an appraisal to determine the price between the two parties. 

In conclusion, the answer to the main question is that it depends on what you need the appraisal for. Every situation and asset is different, and therefore speaking to a professional is sometimes the best first step in determining if you need an appraisal.