Can I Sell My Interest in the Farm?

Top 50 Questions about Farmland

Yes, you can sell your interest in a farm, but the process depends on several factors, including how the ownership is structured and whether the farm can be physically or legally divided. Here’s what you need to know.

Key Considerations Before Selling Your Interest

1. Ownership Structure:

   • Tenants in Common: Each person owns a share of the farm, often undivided. Example: You own 33% but not specific acres.
   • Partnership or LLC: Rules for selling your interest depend on the articles of organization or partnership agreement.
   • Divided Ownership: Specific tracts are owned individually, such as “I own this 40 acres, and my sibling owns another 40 acres.”

2. Partition Action (Iowa Law):

   • If you own more than 25% interest, you can file a partition action to force the division or sale of the property.
   • The judge will determine if:

3. Family Dynamics:

   • If co-owners prefer to keep the farm but one person wants to sell, family members might buy out your share to avoid court action.
   • Communication and mediation are key to maintaining family harmony.

4. Legal and Professional Support:

   • Work with an attorney to navigate the legal aspects.
   • Consult a farmland broker to value your interest and explore selling options.

Selling Your Interest in Specific Scenarios

• Inherited Farms:
• Partnerships or LLCs:

Key Takeaways

1. You can sell your farm interest, but the process depends on ownership type and agreements.
2. A partition action can legally force the division or sale of the property if you own more than 25%.
3. Work with an attorney and broker to navigate legal requirements and family dynamics.

For guidance on selling your farm interest, contact David Whitaker – Iowa Land Guy for professional support!

David Whitaker | Iowa Land Guy