Family Farm History

January 4, 2022

Tuesday, January 4th

Woke up to another beautiful sunrise in the farm and thought, “it’s only TUESDAY?”. This is going to be a long week. Then I remembered that I enjoy what I do during the day and it doesn’t have to feel like work. I get to be myself with my job at DreamDirt. Having a flexible schedule is rewarding and I can structure my days how I’d like to accomplish tasks. Yesterday, as a farmland auctioneer and land agent, I wrote a blog about what I think the farmland market will look like in 2022. You can click here if you’d like to read it.

The blog took me a majority of the morning. It’s full of great information about whether or not to sell farmland this coming year while prices are still record breaking high. Took a quick lunch break with Dad and enjoyed some pizza from Casey’s (yes, pineapple does belong on pizza). After lunch, I looked up some names of agriculture attorneys in Iowa that we would like to partner with this year. We are looking to help their clients sell land by auction or listing with our services if needed. Fill out this form to contact me about selling farmland.

Farmland Seller Course

I also worked on editing a video. I recorded a short video about auctions versus listings for my new Farmland Seller Course. Which I hope to release soon! There will be about 10 videos with secrets, tips, and a ton of great information for anyone thinking of selling land! I hope my videos will be helpful for those that enjoy listening or watching videos instead of reading blogs. I tried to keep the videos as short and concise as possible. The majority are only a few minutes long! I address common questions I hear and topics you should understand as a land owner in the videos.

Feeding Cattle on Family Farm During Iowa Winter

Our cows were out of hay already from the bale we gave them Friday. I helped Dad give them another big bale yesterday while it was warm enough for the tractor to start. It made me nervous when I saw the tractor start sliding down the hill on the snow and ice and hoped it wasn’t going to flip over with my Dad in it. Thankfully, it didn’t and he said, “I think it needs new tires”. Yes Dad, please don’t ever scare me like that again and buy some new tires for snow and ice. Here’s a Tik-Tok video of how giving the cows a new bale of hay went!

@iowafarmlandrealestate

It’s the pink and purple pants for me 😆Also had no idea Spuds jumped through the bale ring till I watched my video and what cow knocked my phone down

♬ Stranger – Official Sound Studio
Feeding cattle in Iowa winter

Iowa Farmland Prices per County

I finished out the work day making a list of what I’d like to accomplish this week. I am going to work on making more short videos about farmland prices in Iowa per county. I’ve already started on a few and want to cover all 99 counties!

Hoy Family Farm History

Last night, Dad and I talked more about family history especially on the Hoy side. We were looking through old pictures of my great-grandpa’s family. All the pictures are in black and white and from the early 1900’s. I found out the my great-grandpa Edward Hoy was born in Pennsylvania and moved to Iowa when he was three. He grew up on a farm and went to Iowa State University for college and study agriculture – just like me!

Redfield, IA Farm

In the 1940’s is when my great-grandpa bought the farm in Redfield. It was so cool seeing all the old photos of what our farm looked like back then and the equipment they used and livestock they had. Horses, pigs, and shorthorn cattle all on this farm we still have today. One old barn from the photos is no longer standing. I could make out the majority of our farm in the pictures. My great-grandpa Ed sold the farm to my grandpa Howard Hoy who was the youngest child after he got back home from service. My grandma, Pat Hoy grew up in Earlham, IA and she worked right along with my grandpa running the farm. They were married in 1958 and had my Dad in May 1960 and four years later had my Uncle Tom.

John Deere pedal tractor and wagon

Looking at the old photos made my dad remember that they used to have an old projector that would show slides of pictures. We dug through the attic and found it! I’ve never seen one in my life. It’s an argus 300 projector and the photos we looked through were when my dad was only a few years old. My favorite picture is this one of my Dad and uncle in the yard with a John Deere pedal tractor and wagon which we still have! These types of pictures are so special to me since I was never able to meet my uncle Tom. He sadly passed away in a car accident when he was 20. I’m just now learning more about who he was and what he liked to do.

Vintage Argus 300 Slide Projector

There’s more slides of pictures that we’ll have to dig through and find in the attic. Learning about my family’s farm has been so intriguing and I want to continue raising cattle and growing crops for as long as I can and hopefully see the farm become a century farm!

May you have a blessed Tuesday and stay tuned for more!

Rachel

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How to sell the family farm

How To Sell the Family Farm

August 24, 2021

Deciding to sell the family farm is one of the most difficult decision to make. I grew up on our family farm in Iowa that my grandparents bought back in the 1940’s. I enjoyed following my grandparents around doing chores while I was young, riding in tractors, and playing in the dirt. Now that it is just my dad and I running the farm, I could never imagine selling it. I know the emotional connection you have with your family’s farm and how hard this decision can be. However, sometimes it’s the only choice and what’s best for you and your family.

Inheriting a Farm with Multiple Family Members

Being an auctioneer and realtor, I’ve heard time and time again, “our mom/dad just passed away recently and now my brother/sister(s) want to sell the land we inherited”. Most often, the sibling I talk to is the one in charge of the estate or the sibling that has been farming the land and doesn’t want to agree to selling. Not only do I understand what it’s like to grow up on a family farm but also the, “I’m the only sibling that has interest in farming or does all the work” feeling. I was definitely the “tom boy” growing up between my younger sister and I. Even though my sister enjoys hanging out on the farm on the weekends and checking cows, she just doesn’t have as much passion and interest in farming as I do. Which is okay.

How to Decide if You and Your Siblings Should Keep the Family Farm

I know we are not the only siblings this way. It can be frustrating when it comes to deciding wether to keep or sell the family farm you now inherited. Or if you are reading this and deciding whether or not to sell your land or pass it on to your family, here are some secrets and tips.

Having the Important Conversation Now

I wish more families would talk before the passing of a loved one. My grandma got sick fast and passed away quickly, leaving the farm to her only living son, my dad. We know that her and grandpa’s wishes are to keep the farm running. If we ever get into financial troubles then it’s okay to sell a certain part of the farm. My dad and I know keeping the farm is best for us right now and we enjoy having it.

What is your plan?

However, this isn’t always the scenario for other families. I’ve seen siblings fight over what to do with the family farm and tear their relationship apart. Most often because of greed and other conflicts. I know that this is not what their parents would want. This can easily be avoided and save relationships if settled before the land owner passes. No one is promised tomorrow. It’s critical to have the conversation of what will happen with the family farm and have a plan. So what are the options you have for transferring the farm to your kids or other family/friends?

Farmland Transition and Estate Planning

How’d the conversation go with your the rest of your family? Do you know who would continue the farm? Do you know if some of your children could use the money now instead of owning land? Are any of the kids interested in owning the family farm? Are medical bills pilling up? Would you like to enjoy your hard work of farming over the years and retire? Depending on how you answer these questions, more than likely I would suggest selling now or dividing the land to inheritors now.

But you’re only saying this because you’re an auctioneer!

No, I’m saying this because of the drama that comes once you have passed. When there is no clear plan of what happens once your family inherits your land, this causes frustration, anger, and confusion. I see it all the time being an auctioneer. When more than one person inherits the farm, there’s always tension between members and emotional stress. My best advice is to sell your land now or divide the land to have only one owner. Here’s why.

Benefits of Selling Farmland to Avoid Family Conflict

Let’s continue with the scenario of one sibling wanting to keep the farm and continue farming and the other sibling does not and would rather have the money. As the landowner/parent you are faced with the difficult decision of deciding to sell now or let the kids figure it out when they inherit it. To avoid family conflict, I recommend selling now. Money from selling the farm can easily be split up compared to splitting the farm between multiple family members. If you’re worried about your child that still would like to keep the farm, as auctioneers we can help sell land to family members. We can do this by giving family per bid discounts. This allows them to have a fair chance at purchasing the land at a discount.

Dividing Farmland

Or you could divide the land first. Then each sibling can better decide what they want to do with the part they inherit. You could even keep the part of the farm your child who farms currently and is interested in keeping for future years, and allow them to rent it from you. That way you have still have income during retirement years. Selling the farm now could also allow more flexibility of where each kid would like to farm.

The Family Farm is Not Everyone’s Dream

Have your children moved off the family farm and staring their own farmstead across the state? Would they like to re-invest the money into farmland closer to where they live now with a 1031 exchange? Are they trying to start their own business or need the money to cover expenses? Emotions play a great role when selling a family farm. Realistically, money can be split more evenly. Which won’t cause the family to tear each other apart compared to dividing the land. Everyone has their own passions and dreams. It could be very well that the family farm is not someones passion. As I mentioned above, I have the passion for continuing our family farm but my sister does not. However, I know she still deserves to enjoy the benefits to the family farm. She should earn income or money from it just as much as I do.

Continuing the Family Farm

Many of my clients who have inherited the family farm have said that they grew up on the farm in Iowa, but now live in a different state. It’s often difficult to let go of things that meant so much to you and your loved ones. If you don’t have interest in farming and nervous about the idea of selling and letting go, I encourage you to think of all the memories you have of running around on the farm as a young kid and write them down. This often helps my clients realize that memories will continue forever. Even if the farm doesn’t continue on in the family and share these memories down the road. You could also continue the family farm by renting out to someone interested in farming!

Farmland Buyers

As an auctioneer, we can set up an auction for rent instead of selling the farm. It may surprise some people that our most common farmland buyers are still farmers themselves and not investors. If you’re thinking about selling, you could give the chance to a farmer looking to expand his operation. Or help a beginner farmer start his/her dream! The possibilities are endless and I’m here to help you through the process. I will listen to your ideas and wishes.

Helpful Resources for Transferring and Selling Farmland

Fear of what will happen to the family farm doesn’t need to cause you stress. There are several free resources to help you through the process of transferring the family farm. Iowa State University Extension and Outreach has several great resources to learn from for transition and estate planning. Resources can be found here. As someone who also understands grief and farming, I’m always here to answer your call or message. Don’t know where to start? I can make the process easy and comfortable for you. Let me handle all the details and answer your questions. I might be an auctioneer, but more importantly I will be your listening ear through everything. Whether you would like to vent or share memories, you can call me any day!

Rachel Hoy 515-954-8063

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Farmland Auction That Was So Quiet You Could Hear Crickets!

April 9, 2021

Awkward Silence During Auction

Have you ever heard an auctioneer chant before? My guess is you have and think it’s amazing to listen too! If you haven’t here’s a video of one of my favorite auctioneers – Iowa native auctioneer, Emily Wears Kroul. Have you ever been to an auction where it was so quiet you could hear crickets though? Probably not, but I have and I was the auctioneer conducting it!

This story gets even better though! One of the sellers of the farm was playing the cricket noises from his phone – talk about awkward silence!

Online Auctioneer

On April 7th, we gathered at the community shelter house in Kiron, IA to sell 115.60 acres of farmland in Crawford County, IA. This wasn’t your typical land auction you might be picturing though. It was an online only auction, but we offered a bidding location to help bidders register to bid on their phone or device. Unlike a live more traditional auction where you would expect a big crowd and auctioneers chanting, the room stayed silent and the bidders watched the auction on their phone and hit the bid button on their own.

Kiron, IA Farmland Auction Results – Rachel Hoy Iowa Land Auctioneer

In a previous blog, I wrote about how I’m an auctioneer but I don’t know how to chant. During the auction, I called out each time a bid was placed and announced the current bid, asking bid price, bidding increment, and the $/CSR2 amount without actually chanting. As the time ticked down, I announced the amount of time left to place one more bid. Our timed online auctions are set to close at 2pm. and are open for about 30 days. Bids could be placed anytime up till April 7th at 2pm.

The seller’s confirmed the sale of the auction and lifted the reserve around 1pm that day. This encouraged bidders to bid even more since they know knew the farm would absolutely sell to the highest bidder. Even though it was set to close at 2pm, extended bidding happened till 2:06pm. This is because when someone bids in the last 2 minutes it extends out for another 2 additional minutes. Giving everyone a fair chance to bid until no more bids have been placed.

Social Pressure During Live Auction

Little did we know, the winning bidder was in the room with us. If it was a live auction, we all would have known the whole time who was bidding and winning. If you put yourself in the shoes of a bidder though, imagine the stress and social pressures you would feel bidding in front of your peers, the seller, banker, etc. This is why our online only auctions work so incredibly well. It takes all the social pressures away allowing the bidder to bid to his/her maximum potential without feeling judged. Their name stays anonymous online and that is why we didn’t know the winning bidder was in the room!

Our team of auction professionals call each person who registers and bids on our land auctions. They all have to accept the terms and conditions that the seller sets in order to participate in the auction. Even though it was surprising the winning bidder was in the room, we had talked to him earlier in the week to make sure he was set-up to bid online. Each bidder had their own account and participated from their own device.

We simply had a bidding location set-up to ensure extra help in-case someone struggled with using the internet. It may surprise you, but we only get a few people that call and ask if they can bid over the phone. Now a days, farmers use technology every day and we have been selling land online for the past 10 years! Online only auctions are the most powerful way to sell your land now and the most cost-efficient!

farmland in Crawford County, IA auction results

Online Only Land Auction Boone County, Iowa

We sold a farm the next day, April 8th in Boone County, IA without having a bidding location or live auction. It was completely online only! The sellers of the 75.99-acre farm near Boxholm, IA also confirmed the sale of the auction prior to 2pm. The auction extended all the way till 2:57pm!

Sold farmland in Boone county, Iowa price

Auctions Create Competition!

Auctions create competition! You can definitely see it when two bidders go back and forth bidding against each other for almost and hour! The seller’s confirmed the farm would sell and trade hands prior to the auction closing. This encouraged the bidders to keep bidding knowing they had a chance of owning the farm.

Are you curious how our online auctions work and what they look like? View the recording of this past auction here.

Free Auction Consultation

If you are thinking about selling land in Iowa, now is a good time! I offer free consultations! Let me help you get started on the right path to selling your most valuable asset. Contact me at 515-954-8063 or email Rachel@DreamDirt.com to request your free consultation.  

Auctioneer Rachel contact at 515-954-8063
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5 Secrets to Setting an Auction Reserve

November 22, 2020

I understand you don’t want to give your land away, and I have a solution! A reserve land auction is where you as a seller set a minimum price where you feel comfortable selling your land to the highest bidder. You also have the right to reject or accept the highest bid unlike an absolute auction where you would have to sell regardless of the price. Reserve auctions are more traditional, and protect you as a seller! Here are a few secrets you should know when it comes to setting your auction reserve price. 

1. Talk to an Auction Professional First

“What do you think my land is worth?” Is one of the most common questions I receive when landowners call me. When you first start thinking about having a land auction, this is a great question to ask a land agent or auctioneer. I look at what the land market is doing daily, and can educate you on what I think your land is worth. If you don’t have a price already in mind, this will guide you on setting a reserve price. 

2. Reserve price = Expected Value x 75%

So, you have a good idea of what your land is worth now. The best advice I can give you next is to take 75% of the value to calculate your reserve price. 

Why not 100%? Here’s the secret. You might be feeling uneasy about your reserve price from my calculation, but this is key for bidder momentum and achieving maximum results.   

3. Announcing, “Farm will Trade Hands”

Have you ever bid on an item and wondered if you were actually going to get it? This is how bidders often feel during a reserve land auction. Farmers, investors, and other buyers understand majority of farmland is sold with a reserve. 

Your reserve price should really stay between you and your auctioneer – no one else (especially neighbors, friends, and family members) until the bids have reached your reserve price during the auction. It’s at this point I like to confirm with you as a seller that you are willing to confirm the sale of the auction and the farm will trade hands to the highest bidder. 

This creates bidder momentum. Typically, bidders will feel more relieved and react by placing more bids after you make the announcement since they know if they are the high bidder, they will get the farm which creates competition. The next few bids that are placed are how we achieve the expected value or more!

The lump in your throat feeling will slowly start to go away as you watch the next few bids be placed and continue to climb. 

4. Accepting or Rejecting the Last Bid

I want to make it clear – you have total control of your auction. Don’t worry. With a reserve auction, you have time to accept or reject the highest bid and confirm the sale even after the auction is complete. I’ve had sellers include in the terms and conditions of their auction that they have up to 4 hours or even 24 hours after the auction to accept or reject the highest bid. Although not as common as secret #3, it’s still a safe way for you to sell land stress-free. 

5. Absolute vs. Reserve

There are two different ways to sell your land by auction – absolute or reserve. I’ve talked a lot about setting an auction reserve, but I want you to be aware of how absolute auctions work. 

No matter what, if you have an absolute auction your farm will sell to the highest bidder regardless of price which can come with risks. This could be dangerous if only one bidder shows up to your land auction and there’s no competition to raise the price. 

I’m thinking worst case scenario though, and it would be very unlikely for a bidder to walk away owning farmland for $1. Remember how I said bidders appreciate knowing they can own the land if they are the high bidder in secret #3? The word absolute is powerful and similar to announcing confirming the sale of your auction. 

I would recommend having an absolute auction only in very unique situations. For example, I helped conduct an auction where all proceeds were being donated regardless of price. It was an absolute auction in October with 10 tracts of farmland that reached $11,400/acre on multiple tracts! 

Having a land auction shouldn’t be a scary or a stressful situation. I protect my sellers by letting you determine what price you are willing to sell your land for. I’m here to give you guidance and advice but at the end of the day you have to make the decision what price you are comfortable with. Let’s get started today with a free market analysis of your farm!

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