When land passes to the next generation, the family inherits a decision along with the acres. Brian Pine walks through the three paths most families consider, what to weigh along the way, and the common mistakes to avoid.
Part 1 of The Kitchen Table Series
It usually starts at a kitchen table. A parent has passed, the funeral is behind you, and somewhere in a folder is a deed to ground you may not have walked in years. Maybe you grew up on it. Maybe you live three states away. Either way, the question comes up quickly: what do we do with the land?
You’re not alone. American Farmland Trust estimates that nearly 300 million acres, about a third of U.S. farmland, will change hands over the next 20 years. Closer to home, roughly one in four of the transactions we’ve handled at HECK over the last three years has involved a trust or an estate.
In my experience, most families end up on one of three paths.
Keep It and Use It
Someone farms it, runs cattle, hunts it, or plans to build there someday. If the land has a clear purpose and someone willing to take responsibility for it, keeping it can be one of the best decisions you’ll ever make. Just remember that land doesn’t take care of itself: fence, taxes, insurance, weeds, a pond dam that’s starting to seep.
Keep It and Lease It
Leasing lets you hold the asset, earn income, and put off a bigger decision. What the land will rent for depends on many factors. What type of ground is it: tillable or pasture, irrigated or dryland? What has it historically produced? And cash rent isn’t the only choice. Crop share and other lease types are worth considering too.
One Kansas note: a handshake lease generally renews automatically unless written notice is given at least 30 days before March 1. If you want changes for 2027, this winter is your window.
We’ll dig into lease types, fair rent, and renting to family in Part 5.
Sell It
Selling is sometimes the right call, and it doesn’t mean you didn’t care about the place. Maybe no one lives nearby, or the money can do more good somewhere else.
There are many factors to weigh before you sell, including:
• The stepped-up basis heirs generally receive on inherited property
• The land’s appraised value at the date of death, which sets that basis
• Whether a 1031 exchange into other real estate makes sense
• Anything on the horizon that could raise or lower the property’s value
• What the land earns today compared with what the proceeds could earn if reinvested
Every situation is different. Talk with your CPA or attorney before you sign anything.
Part 7 will take a closer look at the tax side of land changing hands.
Three Things to Consider Before You Decide
1. Look at the Debt
If there’s a mortgage or loan against the land, can its income cover the payment, taxes, insurance, and upkeep? If not, who covers the gap, and for how long? Land you can’t comfortably carry can lead to a forced sale on someone else’s timeline, strained family relationships, and added financial and emotional stress. Sit down with your CPA or financial advisor early. The numbers often make the decision clearer than any family meeting will.
More on this soon: in Part 6, we’ll look at how families finance a buyout and carry land they want to keep.
2. When the Family Is Split
Some want to keep it. Some want to sell. There’s more than one way through it, and two options come up most often.
Option one: a buyout at a fair, verified value. Often, the family members who want to keep the land are willing to buy out those who want to sell. Where this goes wrong, and we’ve seen it too many times, is the price. A number gets tossed out at Thanksgiving: “I heard the neighbor’s farm sold for $8,000 an acre.” “The guy down the road offered us $6,500 an acre.” Be cautious with hearsay. No two pieces of ground are the same, and family who live elsewhere often expect the prices they see where they live. Verify the facts before anyone relies on a number.
A licensed appraisal gives the family an unbiased value. If there’s any doubt, each side can hire its own appraiser. Just agree on how you’ll settle any difference before anyone sees a number.
Option two: let the market decide. Put the land up for auction (not always a popular option, or an easy discussion). Family members who want the land can register and bid just like any other buyer. The family can choose an absolute auction, where the land sells to the highest bidder regardless of price, or a reserve auction, where the land must reach a minimum price the family sets ahead of time. Everyone gets the same opportunity, and whatever the land brings on sale day is its true market value.
When agreement isn’t possible. If the family can’t agree at all, any co-owner in Kansas can ask a court to partition the property, which can end in a court-ordered sale. It’s an option we hate to see, because it usually means relationships are already starting to break down. It should be a last resort.
More on this soon: how farmland is actually valued (Part 3), how a family buyout gets done (Part 6), and when an auction makes sense (Part 8).
3. Have the Conversation Most Families Skip
One of the biggest mistakes I’ve seen is families never honestly discussing what each person wants and needs. Everyone assumes, or no one wants to hurt feelings, so everyone is hesitant to have a real conversation. And sometimes one family member is more outspoken and tends to steer the discussion, which makes the others less likely to share what they truly need or feel.
Family members rarely see the land the same way. Some want to keep it no matter the cost and are adamant it stays in agriculture. Some have no emotional ties and see it as a management or financial burden. Some want to keep it in their heart but simply can’t afford to. Some are indifferent. And many worry about what Mom and Dad would have wanted, or how they would feel about the decision.
Often, one family member is actively farming or running livestock on the ground. Their tie is both business and personal. They’ve put blood, sweat, and tears into that property, and unless you’ve done that work yourself, it’s hard to fully relate.
None of these views is wrong, and everyone has a right to feel how they feel about the land. But as much as you can, remember that for at least some of the family, this is a business and financial decision.
So be upfront, honest, and compassionate. I’ve seen family relationships permanently scarred over situations like this. Often, it wasn’t the land that did the damage. It was what never got said. If you can’t reach agreement on your own, there’s no shame in bringing in a mediator or advisor. There are qualified people who specialize in agriculture and understand how unique these situations are. Kansas Agricultural Mediation Services at K-State is one place to start. If there’s one thing most families can typically agree on, it’s this: the last thing Mom and Dad wanted was for the land to become the reason the family stopped talking.
More on this soon: Part 4 is written for, and about, the family member who farms the ground.
Planning Ahead: A Note to Parents and Landowners
One of the kindest things you can do for your heirs is make this easier before they face it. An estate plan, a trust, a transfer-on-death deed, or even a written letter of your wishes, prepared with a good estate attorney, is a gift. It gives your family direction when they’re grieving and least equipped to sort it out alone.
If you’ve ever said “I never want this land divided,” make sure your plan reflects what you truly mean, so your heirs aren’t left carrying that burden. And if you don’t expect them to want the land at all, remember that assets such as cash and stocks are far easier to divide. Talk with your family now, while everyone is still at the table.
Part 2 of this series is written for you.
Start With a Real Number
Whichever path you choose, it starts with knowing what the land is actually worth. Not a guess. A real number. If your family is working through this, we’re glad to sit down with you, walk the ground, and give you an honest opinion of value with no pressure to list. When the family needs a formal, independent number, a licensed appraisal is the right tool, and we’ll tell you if that’s the case. Sometimes the best advice we give is to keep it. Call any of the agents at HECK Real Estate at 785-917-5700, or email me directly at brian@heckrealestate.com.
Someday, this land will likely pass to someone new. When it does, our hope is that it happens on your terms, with your family still close.
Brian Pine
Broker & Owner
HECK Real Estate
Neighbors with know-how.
Coming up next in The Kitchen Table Series: Part 2, Before You Have To: A Letter to Parents. The best gift you can leave your family might not be the land itself. It might be a plan.
Sources - American Farmland Trust, Farm Legacy - IRS, Gifts and Inheritances FAQ - IRS, Like-Kind Exchanges: Real Estate Tax Tips - Kansas Agricultural Mediation Services, Family Farm Transitions