Boost Your Farm Sale: Navigating Livestock and Equipment Inclusion

The inclusion of livestock and equipment with real estate assets when selling a farm or ranch depends on various factors and negotiations between the Buyer and Seller. There is no one-size-fits-all answer, as each sale can have unique considerations. Here are some factors to keep in mind:

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1. The Buyer's requirements and intentions may influence whether they want to purchase livestock and equipment along with the real estate. Some buyers may already have their own equipment and livestock, while others may prefer a turnkey operation.

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2) Separating the price of livestock and equipment from the price of the real estate assets will increase the prospective Buyer demographic able to purchase your farm or ranch. Livestock and equipment should be treated as potential add-ons to the real estate assets. Amalgamating the price of the livestock, equipment and real estate assets (as a non-negotiable) could prejudice against some Buyers and reduce the demand for your farm/ranch. Less demand equals less money.

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3) Equipment and livestock are fairly easy and simple to sell on their own. Livestock can be taken to market and sold separately. Livestock are a commodity with fluctuating values, so it is important to keep an eye on market prices leading up to a sale. Equipment can be sold at auction quickly and effectively. There are numerous auction houses we work with that provide on-site auctions for farming equipment.

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4) Having a separate updated and concise equipment and livestock herd list, is critical. Livestock lists should include the approximate age distribution of the herd and the equipment list should include serial numbers and hours on the machine.

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5) There can be tax implications associated with the sale of livestock and equipment. It's advisable to consult with tax professionals to understand the tax consequences of including these assets in the sale.

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Regardless of the decision, it's important to have a clear and detailed agreement outlining what is included in the sale. This helps prevent misunderstandings and disputes between the Buyer and Seller.

LandQuest? Realty Corporation Chase Westersund

https://www.landquest.com/

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