When to Sell Your Farmland
The term “eminent domain” can conjure up scenes from “The Grapes of Wrath” — a man in a fancy car being followed by bulldozers, ready to flat- ten farms with a single pass.
While that 1940 movie scene shows sharecroppers forced to leave their farms, the feelings are the same for today’s landowners, according to Bush Family Farms’ Cheryl Bush.
Small Town No More
The Bush Family Farm is one of many operations near the Johnstown, Ohio area, 20 minutes from downtown Columbus, that have been approached about land acquisition for neighboring New Albany.
Intel, the latest mass developer in the area, is acquiring land for semiconductor research, development and production through the $280 billion CHIPS and Science Act of 2022.
“The New Albany Company (NACO) first approached our farm in 2021. We were like ‘no, absolutely not,’” Bush recalls. “But we knew if we didn’t sell, we would be forced out eventually.”
After the company’s “lowball” offer, the Bush family worked with a NACO to negotiate a price they thought was fair. Once an agreement was reached, the family found out their land would be used for Intel and the grief stages set in.
“Four of my siblings built homes on this land. We’re all trying to figure this out; we’re all affected by it,” she says. “It’s kind of like a death — you shed tears, you’re angry and at a loss.”
Impact on Acres
Kevin Reeves, a former tenant of Bush’s, has lost 350 acres of tillable ground and pasture to development. While devastated about the losses, he says the development repercussions reach far beyond farmland.
“Moving equipment down the road is very dangerous now,” he says. “The city is talking about increasing the roads from single lanes to three or five lanes. It’s going to be a nightmare.”
Beyond infrastructure, Reeves is also concerned about his pocketbook.
“We’re told to expect a 35% increase in property taxes in 2023 and, upon reevaluation in 2027, there’s a chance it will double what it is now,” he says. “We won’t be able to afford to live here even if we choose not to sell.”
Know Your Options
If you are approached about selling farmland for development, Bush provides these suggestions:
1. Negotiate with a timeline.
“If you try to play hardball too long, they’ll take your property by eminent domain,” she says. “You don’t want to be in that predicament.”
2. Consider the cost to relocate.
Due to the warehouse construction, Bush says her area has a shortage of concrete. Consider such factors in your relocation plan, she advises.
3. Pick a price and don’t look back.
“Just down the road, a 5.65-acre section of farmland is listed for almost $10 million,” she says. “We stepped back and wondered if we did the right thing. But once you make that decision, you have to move on.”
More on land:
4 Keys to Building Land Lease Relationships that Last
$30,000 Per Acre? Yep, The Details on the Latest Record-Breaking Farmland Sale
High Exposure: Understand How Record Farmland Prices Impact Your Estate Plan
