Our blog
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Why Farm Land Values Are Strong In The Face Of Staggering Negative Fundamentals
By all accounts, farmland values should be lower than they are today. There are plenty of reasons they could be: lower commodity prices, higher interest rates, and a downturn in the farm economy that has dragged on for several years now.
Any one of these on its own would be a fair excuse for the farmland market to soften.
And yet, as we go about our daily work selling farmland for customers and clients, the market is holding remarkably strong.
Why? Three reasons stand out:
- Farmland is still the asset of choice against inflation. When prices rise, land holds its value in a way few other investments can match.
- It's about as safe an investment as you can make. It's not going to walk off, and it's not going to burn down.
- They're not making any more of it. Land is a fixed supply, and demand isn't going anywhere.
So while the numbers say farmland values should be lower, the truth is, they're not. The market is still active, and it's still strong.
If you've been contemplating selling your farm, or would just like to talk through your options, give me a call. My email and phone number are below.
Also, if you'd like to read my new book, How to Sell Your Farm for the Most Money in the Least Amount of Time, you'll find the link below as well.
Brad Neihouser
765-427-5052
Your Free Guide: https://www.beforeyousellthefarm.com
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Giving Your Farm Tenant Notice
If you are thinking about selling your farm or making a change in tenants, early fall is a really good time to give your tenant notice.
This is especially true when you have a handshake lease or verbal lease—and there are plenty of those in farm country.
That kind of relationship is a wonderful thing, but you might be surprised how quickly things can turn ugly when a tenant is not properly notified that they will not be farming the property the following year.
If proper notice is not given by December 1, the tenant may be able to come back and say, “We are farming that farm next year for the same rate we farmed it this year.” Believe me, the law is on their side.
No one likes sending a registered letter, but it is good business and easy enough to do. It does not mean you have to replace your tenant. It simply keeps your options open.
If you decide to sell the farm, you do not have a tenant hanging around. If you want to explore the rental market, you are free to do so. And if you want to keep your current tenant, you can still do that too.
Good business and good communication never go out of vogue.
If you would like to visit about this subject, my phone number and email are below. We can just talk.
Brad Neihouser
765-427-5052
bneihouser@shook.comP.S. If you would like a free copy of my book, How to Sell Your Farm for the Most Money in the Least Amount of Time, the link is below.
Your Free Guide:
https://www.beforeyousellthefarm.com
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When Co-Owners (Siblings) Cannot Decide on Inherited Farmland
When Co-Owners (Siblings) Cannot Decide on Inherited Farmland
You would think this situation never happens, but it happens all the time.
Mom and Dad pass away and leave a really nice 240-acre farm to five siblings. They leave it undivided, which basically means they are telling the next generation, “You kids figure it out.”
In many cases, Mom and Dad did not have the courage, or maybe the heart, to make those decisions while they were still alive. So now the kids are left to work through it.
And I can tell you, these situations can get extremely tense.
Many times, it pits one sibling against another. One wants to keep the farm. One wants to sell. One may want to farm it. Another may live out of state and just wants their share. Everybody has a different goal, and everybody has an emotional attachment of some kind.
So that brings us to the question: What Do You Do?
The first thing you have to do is get an accurate appraisal of the property. You need to know what the farm is worth before anybody can make a good decision.
Then someone needs to sit down with all the siblings and find out what each person wants. What are their goals? What are their motivations? What matters most to them?
I have done both of those things many times.
Once the appraisal is complete and you understand what everybody wants, then you can start working through the options. Maybe two of the siblings buy out the others. Maybe one sibling wants to own a certain parcel and the rest gets sold. Maybe the best answer is to sell the whole farm and divide the proceeds.
Every situation is different.
My goal, when the process is done, is simple: I want the family to still be able to sit down and have Christmas together.
Farmland is valuable, but family is worth more.
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The Auctioneer's Says Sold, Now What Happens?
When the Auctioneer Says “Sold,” the Job Is Only Half Done
You own a beautiful 160-acre farm. You hire an auction firm to sell it. The advertising runs for six
weeks. The signs are up. The promotion is done. The crowd shows up. The bidding happens.Then the auctioneer says, “Sold.”
You had a good sale.
So now what?
My philosophy has always been, when we say “sold” at an auction, we are only half done.
There are still several things that can go wrong, or at the very least, make the process harder.
Can the buyer get their money together in time to close?
Are there title issues that unexpectedly show up?
Are there survey issues that jump up and bite us when we were not expecting them?
All of these things, and more, can usually be handled carefully and gracefully by an experienced real estate broker and auctioneer. But if the broker does not have the experience, the process can start to flounder. Then you have a real mess on your hands, especially if the buyer says, “I’m not closing until these items are fixed.”
What happens behind the scenes is what makes a successful real estate closing work.
The auction itself is exciting. It is fun to watch the process unfold. But in order for that transaction to go smoothly, there is an immense amount of work that has to happen behind the scenes.
That work matters because the owner usually wants one thing: a very large check and a smooth closing.
If you have a farm that you have been thinking about selling, or if you simply want to talk through your options, give me a call. My first consultation is always free, and there is no obligation.
Brad Neihouser
765-427-5052
bneihouser@shook.com -
Am I Getting The Right Amount of Rent For My Farmland?
Cash Rent: The Third Rail of Farming
If there was ever a third rail in the farming business, it would be this: the amount of cash rent someone is getting for their farm.
Cash rent is an incredibly hot topic, and it is usually kept very quiet. There is no public database where you can look up exactly what every farm is renting for. Most tenants do not want to disclose what they are paying a landlord because they are afraid their other landlords will find out and raise their rent accordingly.
And understandably, most landlords do not want to disclose that information either. They may be afraid their rent is too low, and they do not want to find out that a landlord down the road is getting $50 more per acre.
So what is one to do in this situation?
I specialize in helping landlords determine the right amount of rent for their farm. You might ask, “What is the right amount of rent?”
The answer is not always simple.
Land value is driven by soil quality. Rental value works much the same way. Good, productive land sells well and rents well. Poor-quality land usually does not sell as well, and it does not rent for as much either.
Surprisingly, there are still a fair number of rental rates out there that have not been adjusted in the last 15 years.
The tenant may justify it by saying, “Well, they never asked for more money, so I never offered to pay more.”
The unsuspecting landlord may say, “If I raise the rent on my tenant, he may not farm my ground anymore. Then who will farm my land?”
Both of these scenarios can usually be avoided by relying on accurate, reliable information and, in some cases, hiring a farm manager to take the stress out of managing your farm assets.
If you own a farm and you are wondering, “Am I getting the right amount of cash rent?” my email address and phone number are below. Give me a call. The first call is always free.
Brad Neihouser
765-427-5052
bneihouser@shook.com -
What Makes A Good Farmland Sale
What Makes a Good Farm Sale?
Many farms sell across the United States every year, but what makes a good farm sale?
Not every farm sale is a successful one. There are times when a sale is handled poorly. The seller may not be satisfied with the price received, but by that point, may feel as though he or she has no other choice.
Below are four important factors that make for a truly successful farm sale.
1. Does the Auction Firm or Selling Firm Truly Know the Seller?
Does the firm understand the seller’s goals and aspirations for the farm sale? Or are they simply going through the motions, trying to get the farm sold as quickly as possible?
A good farm sale begins with understanding the seller and what he or she hopes to accomplish.2. Does the Firm Truly Understand the Property?
Does the auction firm or real estate firm understand the property they are selling? Do they know the farm well enough to properly represent it in the marketplace?
A firm should take the time to understand the land, its qualities, and what makes it valuable—not simply rush through the process in order to make a sale.
3. Does the Firm Exhaust Every Possible Opportunity?
Does the auction firm or real estate firm shake every tree, pursue every possible lead, and advertise in every effective way available to make sure the market knows the property is for sale?
A successful farm sale requires effort. The right buyers need to know the opportunity exists.
4. Are the Closing Details Handled with Expertise and Care?
After the purchase agreement is signed, are all of the closing details handled professionally and carefully?
The goal should be that, when everyone reaches the closing table, there are no hiccups and no surprises—only smiles and a check handed to the seller.
This, my friends, is what makes a very successful farm real estate sale.
If you have farm real estate that you have considered selling, or if you would simply like to know its value, my phone number and email address are listed below. Give me a call. I would love to visit with you and see if we might be able to help.
Our goal when selling the family farm is that the sale goes so smoothly, the family can still get together and have Christmas dinner.
Respectfully,
Brad Neihouser
765-427-5052
bneihouser@shook.com -
What is Your #1 Wealth?
You might be thinking about all the blessings in your life—your spouse, your kids, your grandkids, your business, or even your investments.
Guess again, buttercup—not even close.
Your number one wealth, hands down, is your health.
Because when your health craters, everything else falls apart.
It doesn’t matter how much money you have, how successful you are, or how many people love you—if your health is failing, it consumes your thoughts, drains your energy, and steals your focus. It becomes the only thing you can think about. It overwhelms every other part of your life.Health is the foundation that everything else is built upon.
And if you’d like to know how I know this firsthand, I’d be more than happy to share my story with you.
Shoot me an email or give me a call—both of my contact details are below. I'd love to connect. -
Overpricing Your Property For Sale
Overpricing your property for sale
It is incredibly tempting to overprice a property that you have for sale. No one wants to leave money on the table when they sell their property, and that includes real estate professionals.
When I came to Lafayette, IN, 10 years ago, I inherited a listing on the market a couple of years before I got here at an outlandish price.
Being new to the area, I took the assignment and began working with the owners to try to show them data that says the property is not worth nearly what we are asking.
This seemed to fall on deaf ears, and reluctantly, two years ago, I told the family, "I'm not going to renew this listing contract. This is a total waste of time for me and for you."
About six months later, they came back to me and said they were ready to get serious about selling this property… and it seems that they were.
A short story long… the property sold almost to the dollar of what I told him it would sell for five years ago.
This family had been trying for 10 years to get more money, which was never going to happen.
What's the lesson to be learned here? Pricing your property at a reasonable value always pays; overpricing your property for whatever reason will always cost you as the owner.
If you would like to talk about commercial real estate or farm real estate give me a call or give me an e-mail.
Brad Neihouser
765-427-5052
bneihouser@shook.com
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Legends of Rock and Roll
Legends of Rock and Roll
I LOVE The Eagles, when I saw they were playing just one state over, I decided we had to go…
We flew into Burke Lakefront Airport arriving around 4:00pm.
After freshening up and having a great dinner with my beautiful wife, we headed to the venue to watch the most iconic rock bands of all time take the stage.
First off, the opening act was the legendary Steve Miller Band. Steve Miller informed us that just that week he turned 80. He played an hour long set of all his hit songs back from the 70s and it was magnificent.
What was astounding was watching the stage crew change the stage from the Steve Miller Band to the Eagles set in about 15 minutes.
Don Henley, the voice of the Eagles, told the crowd that they had over 100 people in their crew, and I don’t doubt it. They had people scurrying across the stage like crazy getting the stage prepped.
Since the first act didn’t start till 7:30, the main act started around 9:15. I told someone, all these old people at this concertaren’t going to stay awake till these guys are done, but they sure did.
The Eagles opened with their iconic rendition of Seven Bridges Road, an acapella song with amazing harmonies, the vocals were magnificent.
As they play through their hit songs, they talk very little. Only stopping twice in two and a half hours.
Don Henley thanked the fans for over 50 years of being able to play music. Then he informed the crowd that they have the best sounding equipment, the best stage, the best video screens money can buy…
It takes 10 tractor trailer trucks to haul everything from venue to venue. He said that’s why tickets cost so much.
The other reason tickets cost so much is because you are viewing antiques. Don Henley, Timothy B. Schmit, and Joe Walsh are all 76 years old, but you would never know by watching them play.
It was very interesting as the night warn on, ushers and security were up and down the isles constantly telling people “NO VIDEOS.”
Subsequently, we got very few videos.
Barb initially tagged along to humor me as I have talked about seeing the Eagles for over 40 years. She looked at me mid-show and said, “I really like this.”
Before we left, she said, you must do this again.
They finally left the stage around 11:15, but I knew they were coming back, as they had not played their iconic hit, Hotel California.
After much hooting and hollering from the crowed, they came back out and did their signature Desperado and ending with Hotel California.
What a night.
Barb and I walked back to our hotel feeling like we had seen a piece of history that very few people get tosee. We had a wonderful night and an uneventful flight back to Indiana the next morning.
The Challenging Client
As professionals in the business world, we’ve all encountered clients, whether they’re close family members, friends, or simply acquaintances, who present unique challenges.
Today, we will be diving into how I effectively navigate these situations and I hope you can use these suggestions in your professional field as well.
The kind of client I’m referring to is difficult to communicate with, holds unrealistic expectations, might be a little needy, and ultimately requires a higher level of tactfulness and patience to establish a positive working relationship with.
But how do you get there?
First, set expectations on the front end.
Never promise a client more than you can deliver and deliver easily. If you as a broker set lofty expectations, the client will not forget that. You’ve set the standard in their mind for what they can get for their property. Then in the end, if those expectations were not realistic, the odds of that client growing sour towards you are high.
It’s best to set modest expectations from the outset.
Secondly, take the time to listen.
Nearly every owner has their “why” behind the decision to reach out to a commercial broker.
They need to part ways with a long-held asset. Their business is growing, and they need to take the next step to accommodate that growth. There are familial tensions behind the scenes of a property.
No matter what, there is likely some stress & apprehension behind the need for a broker. You have the opportunity to serve as their advocate in this process, take the time to listen to their concerns, assist in weighing the options, and sometimes just offer open ears.
Finally, remind the client you’re on their side.
Both brokers and their clients have the same goal in mind, their success.
Whether it’s getting the most money for an owner, helping a business owner acquire a new property, or helping a landlord fill their vacancies, the end goal for both parties is the same.
Sometimes it’s easy for both broker and client to stray away from the goal, especially if the situation gets more complicated, so it’s important to come back to the center and remember the main objective.
Of course, as a last resort, you and the client may need to part ways.
If the relationship becomes so strained that you are unable to serve them, that is the best option for all involved.
Fortunately, in my 35 years of commercial real estate, I have never had to walk away from a client. That’s not to say that maybe I should have, but thankfully we both made it through to the bitter end.
The moral of the story;
If you’re knee deep in a deal with an extremely difficult client, take a deep breath. Try one of my suggestions, and maybe the solutionDo not call me unless you want your clients best interest served. If you want to visit about farmland, commercial real estate, or life, give me a call! I have a table at the Red Sevenrestaurant in Lafayette; lunch is on me!
Brad Neihouser765-427-5052bneihosuer@shook.com -
If We Can't Make You Look Good, You Are Ugly
I just returned home from an intense two-day marketing seminar….
Admittedly, this is something I've always felt I could do better at, so I'm always looking for ways to improve.
The man leading the seminar told us to spend most of our time writing the headline or the subject line of our marketing materials.
One of his businesses was a Barber shop, and the above headline "If We Can't Make You Look Good, You Are Ugly," was one that he used in his advertising, and it was a smashing success.
We all laughed when he told us the headline, but if you stop and think about it, it sure gets people's attention.
I wonder what headline I can use to grab someone's attention in my commercial real estate business.
Commercial real estate can be somewhat boring, but it seems like if you're boring, you might be broke. So, in the coming days, I'm going to work intently on writing better headlines and subject lines for my emails.
Boys and girls, the whole reason for advertising is to catch someone's eye so they will read it. I would love to hear how you advertise and how you differentiate yourself from the masses.
My phone number is 765-427-5052 and my e-mail address is bneihouser@shook.com, I'd love to hear from you.
Not so respectfully sent
Brad Neihouser
