Sean Haberman

SW Minnesota Farmland Update - April Sean Haberman Minnesota Land Specialist Cottonwood-Jackson-Murry-Nobles-Pipestone-Rock: SW Minnesota farmland update for April. Historically, this is a slower time of year for land to trade hands. I expect activity to pick up significantly in the second half of the year. I will continue to send farmland market updates on a monthly basis! Recent Farmland Transactions- March 2025 Minnesota Beginning Farmer Tax Credit- Something to consider! The State of Minnesota offers a tax credit for landowners who sell or rent their land to a qualified beginner farmer. A beginning farmer is someone who is starting, or has started farming within the past 10 years (among other criteria, view the link below for more information).   Here is a breakdown of the tax credit opportunity: Land Sales: 8-12% of sales price ($50,000 maximum) Cash Rental: 10% of annual rental income ($7,000 maximum) Share Crop: 15% of annual rental income ($10,000 maximum)   Let’s look at some examples…   A beginning farmer purchases 80 acres for $13,000 per acre. Purchase price: $1,040,000 8% Tax Credit: $83,200 Actual Tax Credit: $50,000 (Maximum Amount) Tax Credit per Acre: $625/ acre   A beginning farmer purchases 40 acres for $13,000 per acre, and is under the age of 35 (emerging farmer- qualified for 12% tax credit) Purchase Price: $520,000 12% Tax Credit: $62,400 Actual Tax Credit: $50,000 (Maximum Amount) Tax Credit per Acre: $1,250/ acre   A beginning farmer cash rents 80 acres for $300 per acre. Total Annual Rent: $24,000 10% Tax Credit: $2,400 Tax Credit per Acre: $30/ acre   As you can see, this tax credit can be a very powerful tool!   Here is a link for more information on this program: https://www.mda.state.mn.us/bftc *I am not a tax professional, please consult a tax professional*     Do you want to learn more? If you’re considering buying or selling land, reach out to a local High Point Land Company agent. For more questions regarding land real estate, visit our YouTube Knowledge Center!     Sean, who grew up in Southwest Minnesota, has a solid foundation in agriculture. He obtained a degree in Ag Systems Technology from SDSU and spent 8 years working in the ag equipment industry as an equipment sales consultant and precision ag specialist. Sean is also actively involved in farming corn and soybeans on his family farm, which has given him a deep appreciation for fertile and productive land. Get in contact with Sean by reaching out to 507-360-6575 or emailing Sean@highpointlandcompany.com.

SW Minnesota Farmland Update - March Sean Haberman Minnesota Land Specialist Cottonwood-Jackson-Murry-Nobles-Pipestone-Rock: SW Minnesota farmland update for March. The demand for high-quality farmland remains strong, while lesser-quality farmland has seen a noticeable decline in recent months. We anticipate the demand for “A” quality farmland to remain strong throughout 2025.   Recent Land Transactions (January 2025 – February 2025) Consider Selling a Farm to Buy a Different Farm Recently, I have had the opportunity to assist several landowners in selling a piece of land to purchase another that better suits their needs. In many cases, this involves selling land that is farther from their home operation and acquiring a more conveniently located property. One effective strategy to facilitate this transition is utilizing an IRS Tax-Deferred 1031 Exchange. This allows landowners to sell a piece of land and reinvest the proceeds into another property without triggering a taxable event. However, the 1031 Exchange process has specific rules and requirements that must be followed, so consulting with a CPA and a Qualified Intermediary before proceeding is crucial. If you find the right piece of land but want to avoid additional leverage, a 1031 Exchange might be the ideal solution to consider! Do you want to learn more? If you’re considering buying or selling land, reach out to a local High Point Land Company agent. For more questions regarding land real estate, visit our YouTube Knowledge Center! Sean, who grew up in Southwest Minnesota, has a solid foundation in agriculture. He obtained a degree in Ag Systems Technology from SDSU and spent 8 years working in the ag equipment industry as an equipment sales consultant and precision ag specialist. Sean is also actively involved in farming corn and soybeans on his family farm, which has given him a deep appreciation for fertile and productive land. Get in contact with Sean by reaching out to 507-360-6575 or emailing Sean@highpointlandcompany.com.