Your Farm or Ranch Is Your Largest Asset. Plan the Transition.
Five-section planner for farm and ranch owners. Land value assessment, full tax exposure (all four layers), transition structure comparison, generational transfer options, and USDA program impact flags.
Land Value Assessment
Agricultural-specific valuation based on productive capacity and market factors.
Estimated Land Value
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Value per acre
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Cash rent cap rate
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Development premium
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Total acres
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Important note: This estimate is based on general regional benchmarks. Actual value requires a certified agricultural appraisal. Values vary significantly by county, specific soil productivity indexes, lease terms, and local comparable sales. Use these figures as a starting point only.
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Enter your land details to begin.
Fill out the form on the left and click Calculate land value & transition options to run all five sections at once.
Tax Exposure Inputs
Agricultural land has four layers of tax exposure on a straight sale.
Purchase price + legal fees + improvements
Recaptured at ordinary income rates
Total Tax on a Straight Sale
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Four-Layer Tax Breakdown
Sec. 1245 recapture (ordinary income)
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Sec. 1250 recapture (25% rate on bldg depr)
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Capital gains on land appreciation
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State tax
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Total tax burden
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Tax as % of gross sale price
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Net proceeds after all taxes
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The tax burden most farm sellers are surprised by: When you add Sec. 1245 recapture at ordinary income rates (up to 37%), Sec. 1250 recapture at 25%, capital gains, and state tax, total tax can reach 35-45% of gross proceeds. An installment sale or 1031 exchange can defer most of this.
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Run the Land Value calculator first.
Complete Section 1 to generate all five structure comparisons.
Generational Transfer Options
For owners who want to keep the farm in the family.
IRS minimum rate for family installment sales (AFR). Check current AFR at IRS.gov.
Years to Gift Full Land Value via Annual Exclusion
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At current gift exclusion amount
Generational Transfer Options
Annual gifting capacity (total all recipients)
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Years to gift entire land value
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Below-market installment sale to family (AFR rate)
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Monthly payment to you
Qualified farm estate exclusion (up to $1.32M in 2024)
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Stepped-up basis benefit at death
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Recommended approach
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Stepped-up basis at death means your heirs inherit the land at its current market value, not your original purchase price. For farm families with low-basis land, this can eliminate the capital gains tax entirely — making hold-until-death a powerful option when the farm will stay in the family.
USDA Program Participation
Check which USDA programs apply to your land and what transfer restrictions they create.
Does your land qualify for a conservation easement? See the Conservation Easement Analyzer to model the tax deduction and net economic comparison.