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
ARC/PLC, marketing loans, and crop insurance each matter at different points in the price cycle — and the new Farm Bill strengthens the balance among them.
November 10, 2025 01:38 PM
·
Experts highlight the importance of monitoring insecticide resistance in crops and improving disease traceability at livestock shows through RFID technology.
November 10, 2025 12:22 PM
·
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report to share his perspective on what the bill could mean for truckers.
November 10, 2025 11:46 AM
·
Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Monday, Nov. 10, 2025.
November 10, 2025 10:48 AM
·
Mike Newland with the Propane Education & Research Council shares how producers can prepare for winter weather and the benefits of propane.
November 07, 2025 12:03 PM
·
Verified U.S. data show real leather’s carbon footprint is lower than advertised — an edge for the American cattle industry in both marketing and byproduct value.
November 07, 2025 11:32 AM
·
For tight margins, contract grazing leverages existing acres into new income streams and spreads risk. Here are some tips for row crop farmers looking to diversify.
November 06, 2025 02:45 PM
·
Farm CPA Paul Neiffer shares insight into what these new accounts, established in provisions of the Big, Beautiful Bill, could mean for the farm families.
November 06, 2025 02:34 PM
·
RFD-TV expert Roger McEowen explains why a “skinny” Farm Bill is likely in the future, but its scope may change due to provisions contained in the Big, Beautiful Bill.
November 05, 2025 03:19 PM
·
