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
Treat succession like any major crop — plan early, document clearly, and calibrate cash flow so the next generation can succeed.
October 31, 2025 11:21 AM
·
Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report to discuss the implications for farmers.
October 30, 2025 02:37 PM
·
RFD-TV tax expert Roger McEowen discusses the renewed tax provision and how cattle producers can take advantage of it to recover investments in heifer retention and herd expansion more quickly.
October 30, 2025 01:23 PM
·
John Appel with the Farmers Business Network (FBN) joins us for a closer look at the 2026 Crop Protection Market Outlook Report.
October 27, 2025 01:00 PM
·
Farmers display a unique optimism — planting with the expectation that weather, basis, and prices will improve by harvest — asserting that the profession is an identity, not just a job.
October 27, 2025 12:12 PM
·
Margin Protection and the new MCO add county-level margin tools — with earlier price discovery, input cost triggers, and high subsidy rates — to complement on-farm risk plans for 2026.
October 24, 2025 01:44 PM
·
For aging operators and their rural neighbors, staying socially engaged is a practical strategy to preserve decision-making capacity and farm vitality.
October 24, 2025 01:37 PM
·
Set targets and use forwards, futures, or options to manage downside while preserving room for rallies.
October 24, 2025 11:05 AM
·
Farm CPA Paul Neiffer discusses the status of USDA disaster aid, including delays to Stage 2 of the SDRP program, and what farmers should watch for as lawmakers negotiate an end to the government shutdown.
October 23, 2025 01:03 PM
·
