NASHVILLE, Tenn. (RFD-TV) — Farmers frequently face decisions that depend on knowing the true value of their assets, making fair market value (FMV) an essential concept in farm management, tax planning, and estate transitions. Kevin Burkett, Extension Associate and Assistant Director of the Ag Tax School at Auburn University, says FMV matters because it determines how land, equipment, and other farm assets are valued when ownership changes or financial records are updated.
FMV represents the price an asset would bring in an open market between a willing buyer and a willing seller, without pressure to buy or sell. That definition becomes especially important in estates, where heirs often receive a step-up in basis that requires an accurate FMV determination, even when no sale occurs.
For producers, getting FMV right helps avoid undervaluing property during sales, estate settlements, or lending discussions. It also prevents overvaluation when assessing depreciation, tax liabilities, or potential capital gains. Because market prices shift over time, Burkett notes that farmers often rely on recent sales, listings, or professional appraisals. Qualified appraisers evaluate comparable sales, replacement cost, and income-generating potential to assign an accurate value.
Looking ahead, producers planning transitions, expansions, or succession should maintain solid documentation and seek guidance from trusted advisors — accountants, attorneys, tax specialists, and appraisers — to ensure valuations reflect actual market conditions.
Farm-Level Takeaway: Fair market value shapes taxes, transitions, lending, and sales, making accurate valuation essential for long-term planning.
Tony St. James, RFD-TV Markets Specialist
Brooks York with Agri-Sompo joined us to discuss this year’s harvest price calculations and what they could mean for producers nationwide.
October 22, 2025 03:05 PM
·
October 21, 2025 06:18 PM
·
Understanding how these tax provisions interact will be key for farmers planning long-term equipment purchases or transfers within the family.
October 20, 2025 03:45 PM
·
Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.
October 17, 2025 04:54 PM
·
Farm CPA Paul Neiffer outlines how producers should navigate evolving Farm Bill provisions and prepare their operations for the next crop year.
October 16, 2025 04:14 PM
·
Expect firmer shop prices, leaner inventories, and selective hiring in ag-adjacent businesses — plan parts, service, and financing needs earlier.
October 15, 2025 11:35 AM
·
A new proposal from the Federal Aviation Administration (FAA) could transform how farmers use drones, allowing commercial operators to fly beyond their visual line of sight.
October 14, 2025 01:51 PM
·
Even in this strong market, some beef producers are leaving money on the table by not following proven marketing practices.
October 14, 2025 12:03 PM
·
For rural borrowers, freeing up community-bank balance sheets could mean steadier home loans, operating lines, and ag real-estate financing as winter planning ramps up.
October 13, 2025 04:08 PM
·
