Inherited a Farm?
Inherited a Farm?
Inheriting farmland usually comes with a lot of questions and not much time to answer them. Many of the families we work with live hundreds of miles away and have never dealt with a farm lease, a tenant or the FSA office.
You don’t need to decide anything in the first month. The best first step is to learn what you have: what the farm rents for, what it’s worth, what the lease says and what obligations come with it. We’ve been helping families through this from our office in Vinton since the 1970s, and we’re happy to walk you through it.
How we help families who inherit land
We get you up to speed. We track down the lease, tax statements and FSA records, walk the farm, and explain what you own in plain terms, even if you've never set foot on it.
We check the rent and the lease. We compare the current rent with what similar farms nearby bring and review the lease terms, so you know whether anything needs to change before the next deadline.
We help you decide what's next. Keep it and have us manage it, rent it to a new tenant, or sell it. We lay out the options and work with your attorney and tax advisor either way.
Free Farm Review
If you’ve inherited a farm, or you’re about to, start with our Free Farm Review. We look at the farm’s soils, the current lease and recent rents and sales nearby, and give you two things:
- A rent check: whether the farm is renting for what the market will pay
- Our opinion of the farm’s value
We usually have it back to you within two business days. There’s no cost and no obligation.
Five first steps after you inherit a farm:
- Don’t rush. You don’t need to keep or sell in the first month. Get the facts first.
- Gather the paperwork. The lease, the latest property tax statement, FSA records and any CRP or conservation contracts. We can help track them down.
- Know the lease deadline. In Iowa, farm leases generally renew on the same terms unless written notice to end them is given by September 1.
- Talk to your tax advisor. Inherited land often gets a new tax basis, which can change the math on selling or keeping.
- Find out what the farm is worth and what it should rent for. That’s what our Free Farm Review is for.
Questions Heirs Ask Us
Answers to the questions we hear most from families who have inherited farmland.
My parents' farm is rented to a neighbor. Do I have to keep that tenant?
Not forever, but the lease in place usually carries on for now. In Iowa, a farm lease generally renews for another year on the same terms unless written notice to end it is given by September 1. Minnesota and Illinois have their own rules. We’ll review the lease with you and explain your options and timing. Many families keep a good tenant; others decide a change is needed.
There's no written lease. Is that a problem?
It’s more common than you’d think. A handshake lease is still a lease, and in Iowa it generally renews the same way a written one does. A written lease protects both you and the tenant, and it’s usually one of the first things we put in place.
My brothers, sisters and I own the farm together. How do we make decisions?
Shared ownership is common after an estate settles. Some families keep the farm together with one manager and one report that goes to every owner. Others have one sibling buy out the rest, or they sell. We give every owner the same information so the decision is easier to make together.
How do I know if the rent is fair?
Rent depends on the farm’s soils, drainage, field layout and what nearby farms are bringing. Our Free Farm Review compares your farm’s rent with current leases in the area and tells you where it stands.
Should we sell now or hold on to the farm?
It depends on your family’s goals, your tax situation and how you feel about the land. We can lay out what the farm would likely bring today and what it would earn if you keep it. If you decide to sell, we’ll explain the choices, including a listing, an auction or a sealed bid, and handle the sale through closing.
We live out of state. Can you take care of everything?
Yes. Most of the landowners we work with don’t live near their farms. We handle the tenant, the lease, rent collection, property taxes, insurance and government programs, and we send you regular reports you can take straight to your tax preparer.
What happens to the FSA and CRP contracts?
The farm’s records with the county FSA office need to be updated to show the new owners, and any CRP or conservation contracts usually need the new owners to sign on to keep payments coming. We coordinate that with the local office so nothing is missed.
Start with a Free Farm Review. Or call us at 319-472-5353.
Request a Free Farm ReviewFeatured Properties
Iowa Land Management & Real Estate, based in Vinton, Iowa has been proudly serving farmers, property owners, buyers and the community for over 40 years.
36.44 Acres – 115 Benesh Lane, Cedar Rapids
36.44 acres near I-380 and Highway 30 in Cedar Rapids. Currently zoned agricultural with strong commercial development potential.