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Potential tax law changes driving more land to market
Potential changes to federal tax laws are driving more farmland onto the market this fall.
So says Lee Vermeer, who heads up real estate sales for Farmers National Company.
“Probably over 50 percent of the sales that we’re doing right now, the people that are calling and wanting to sell their land are saying to us that they want it sold and they want it closed before the end of the year because of the potential for tax law changes come January 1st,” Vermeer says.
Unless Congress takes action in the lame duck session, Vermeer explains, the capital gains rate will go to 20 percent, with an additional three-point-eight percent added for health care costs. “If the Congress does nothing, then we know we’re going to be looking at capital gains taxes over 50 percent higher than they are right now.”
But Vermeer says, even with more land on the market, there are still more buyers than sellers.
“Demand is strong—predominantly from farmers,” he says. “There’s still some investors out there buying farmland as well—but the strongest market is still coming from the local communities and local farmers.”
Vermeer says active farmers continue to buy about 75 percent of the land sold by Farmers National.
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