Thinking of Selling the Farm?

Friday, October 30, 2026

First steps, common challenges, & tips for a smooth transition

By Mary Loggan

Selling a farm is more than a sale; it is a turning point for the operation and the people connected to it.

For most producers, the questions are immediate: Is this the right time?

What will the sale return after taxes and fees? And how do you ensure the outcome serves both the business and the family behind it?

Farm real estate specialists say the process runs more smoothly when owners start early, define their reasons for selling, and base decisions on clear market information.

Selling does not always mean leaving agriculture. For some, it is retirement. For others, it is about freeing up capital or trading an outlying parcel for land that better fits the operation.

Adam DeGroote, a RE/MAX real estate broker and farmer in Brant and Norfolk counties, says that mix of financial and personal considerations often makes the decision difficult.

“Selling farmland is often a very difficult decision for farmers to make because they have looked after it, nurtured it and watched it grow over the years,” DeGroote says.

“It usually isn’t a passive investment, so a lot of thought and consideration go into selling a farm.” Real estate agents Paige Handsor and Jackie Pepper of Match Realty in Chatham see a similar range of motivations — from retirement to restructuring — but say many sellers struggle with how to make the next step work both on paper and in practice.

First steps

Handsor says the process begins with a question that is often overlooked: Why sell?

She most often sees three drivers — retirement, freeing up capital for the existing operation, or selling land that no longer fits. That reason shapes decisions on timing, price and the type of buyer a seller hopes to attract.

In many cases, DeGroote notes, the sale is part of a broader shift rather than a full exit.

“Most often when a farmer does sell, it is to purchase another parcel that is more desirable because of location, size or existing infrastructure included,” he says.

Timing follows closely behind.

DeGroote advises listing when the farm can transition cleanly to a new owner. Selling in late spring or summer, with crops in the ground, is “not ideal,” he says, as it complicates crop rights and possession and can narrow the buyer pool.

With tight margins and high input costs, he finds farms are “best to be sold in the late fall, winter, or early spring” so active farmer-buyers can step in quickly.

Once timing is considered, sellers need a clear understanding of value and net proceeds.

“Farmers should make sure their expectations are realistic for the current market conditions,” Handsor says, noting that “they may not walk away with the full sale amount if there are tax obligations.”

DeGroote calls tax “the most important consideration in many sales, particularly when the property is not the home farm with a principal residence.

“Capital gains, exemptions and ownership structure can significantly affect the outcome.”

He also points to the loss of income from the land — whether owner-operated or rented — as well as realty fees and potential loan penalties.

Pepper encourages sellers to prepare well in advance by working with an accountant or tax planner.

She also cautions against overestimating value.

“We’ve seen many owners lose hundreds of thousands of dollars on their sale by having expectations beyond the market value,” she says.

With those fundamentals in place, sellers can decide how to bring the property to market.

“When selling a farm, the owner needs to consider how they would like to go about selling it,” DeGroote says.

Options include private sales, listing with a real estate agent, auctions, or tender processes.

A neighbour may already be interested, but DeGroote notes sellers can also “engage a real estate agent to actively market the farm to the greatest number of potential buyers and search for a buyer, or explore auction and tender routes.”

Pepper says listing with a realtor provides broader exposure through MLS and online platforms.

Private sales can save commission, but she notes she has “acquired several listings because a private sale failed to complete.” DeGroote suggests speaking with professionals across each approach to find the best fit.

Challenges

Even with a plan, farm sales bring emotional, financial and practical challenges.

For many, the sentimental side comes first. Pepper says selling can be “an emotional experience if it is a family farm that has been in the family for generations.”

Choosing a buyer can be just as difficult.

“Probably the largest challenge is knowing which party to sell the farm to or if the offer they receive is the correct one to accept,” DeGroote says.

While price is important, it is not always the deciding factor.

“It isn’t always the buyer with the most money that ends up buying the parcel,” he says.

“Some sellers prioritize value, while others focus on who they want the next steward of the land to be and for what amount of compensation, or which deal structure works best for them and makes them feel the most comfortable.”

Relationships can either support or complicate that decision.

A strong connection with a buyer can be “a powerful and persuasive tool to getting the deal done,” DeGroote says.

In other cases, “the seller does not want anyone they know buying the farm” to avoid future tension.

“Every situation really is unique,” he adds.

External opinions can also create pressure.

Pepper adds that an experienced realtor can “alleviate this stress by providing an unbiased opinion on the offers received, and grounding decisions in current market data.”

On the practical side, preparation is often underestimated.

DeGroote notes buyers expect to see “average production expectations, costs to run the operation, and any nuances that would be relevant to a purchaser.”

Gathering that information late in the process can slow negotiations and add stress.

Maintaining the farm’s appearance during showings is another demand.

And price expectations remain a common hurdle. Overpricing can limit interest and, in some cases, reduce the final sale price.

Underestimating taxes, fees, or penalties can also affect how the closing outcome feels.

Handsor says, “At its core, selling a farm represents a significant change for the business, the family, and often the surrounding community.”

Advice for a smooth transition

Brokers agree that a smoother sale starts with treating the process as a series of steps rather than a single decision.

DeGroote recommends beginning with a clear vision of the desired outcome.

“The seller should first decide what they would ideally like the transaction to look like and work diligently towards achieving that outcome,” he says.

That includes identifying the preferred buyer, the deal structure, and the overall timeline.

From there, sellers can “take the next step of approaching either a professional to help them achieve that goal or a buyer that they particularly want to purchase their farm.”

Bringing in professional support early can ease the workload.

When working with an agent, De- Groote says, “the agent will take the lion’s share of the workload and work towards achieving the farmer’s goal, often reducing stress on the seller.”

Accountants, lenders, and lawyers can help align tax, financing and legal considerations.

Preparation on the farm also plays a role.

Handsor says, “A little bit of effort in the beginning goes a long way,” recommending basic repairs, organization, and presentation before listing.

Transparency is equally important.

Pepper advises sellers to “disclose all known information about the property upfront, including issues such as drainage work.”

DeGroote adds that sharing “average production expectations, costs to run the operation, and any nuances that would be relevant to a purchaser helps buyers make informed decisions and reduces surprises after closing.”

Throughout the process, Handsor advises focusing on market facts rather than the rumours at the coffee shop.

“Clear expectations — including a realistic understanding of net proceeds — help keep negotiations grounded.

“Selling a farm may never feel simple. But with clear goals, informed decisions and the right support, it is possible to move through the process with confidence and set up the next chapter on solid footing.” BF

Key Takeaways

• Start early and get clear on why you are selling, because that ‘why’ drives timing, pricing and the kind of buyer and deal that make sense.
• Treat tax planning and net proceeds as centre-stage issues, not afterthoughts; capital gains, fees and lost income can significantly change the outcome.
• Choose a sales method and support team that fit your goals and ground all decisions in current market data rather than coffee-shop rumours or neighbour advice.
• Selling a farm is both a financial and emotional transition, so define your ideal outcome, share information transparently and surround yourself with the right professionals to navigate the change. BF