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Maximizing Farmland Value: Should You Sell as a Unit or in Pieces?

Maximizing Farmland Value: Should You Sell as a Unit or in Pieces?
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How to know which strategy brings the strongest return for your land.

At Hammond Realty, one of the most common questions we hear from farmland owners is this: “Should I sell my farm as a whole unit, or will I get more by selling it in smaller pieces?”

The right approach and strategy depend on the land, its layout, the infrastructure, and the most likely buyers. Making the wrong choice can mean leaving serious money on the table.

When Selling in Pieces Makes Sense

Today’s farm operations are far more specialized than in past generations. That specialization means breaking up a farm often creates more competition, and potentially more value. Situations where this works best include:

  • Mixed Land Uses: Grain producers don’t want pasture, and livestock operators don’t need large blocks of cropland. Selling separately lets each buyer focus on what fits their operation.
  • Soil Variability: More productive parcels can attract premiums on their own, while less productive land still finds a buyer at fair value.
  • Geographic Spread: Farms spread over 10–20 miles rarely appeal to one operator. Often, local neighbours will pay more for nearby quarters than a distant buyer would for the whole package.
  • Farm Size: A mid-sized farm may not be big enough to attract a relocating buyer, but it could be very attractive when split among three or four local farmers.
  • Premium Parcels: Sometimes one block commands such strong demand that it makes sense to separate it, even if the rest sells for average value.

When Selling as a Whole Creates More Value

There are also clear situations where insisting on a “unit sale” protects value and avoids fragmentation. These include:

  • Matched Infrastructure: The most common example is grain storage. Imagine a 5,000-acre farm with 225,000 bushels of bin space — about 45 bushels per acre, an ideal balance. If the land is split and one buyer only takes 2,500 acres without purchasing any of the grain storage, all of the bins must go to the remaining buyer. Suddenly, that buyer has 225,000 bushels for only 2,500 acres — equal to 90 bushels per acre, far more than they need. What was a perfect fit suddenly becomes overbuilt, and overbuilt means discounted.
  • Small Pockets of Lower Productivity: When only a few less productive quarters exist, buyers are often willing to take them as part of a larger package to secure the more productive land.
  • Economic Scale: Farms in the 4,000–6,000 acre range justify a full line of equipment. They attract larger buyers who want scale and efficiency and are willing to relocate.
  • Contracts: Lease arrangements from neighbouring landowners can add significant value when bundled with the farm sale. Assigning these leases to the buyer allows them to secure additional acres without the upfront cost of purchase. Selling as a whole keeps these contracts intact and maximizes their benefit.

The Bottom Line

Every farm is unique, and so is every sale strategy. Sometimes you maximize value by breaking a farm apart; other times, the best result comes from keeping it together. The key is knowing your land, its layout, your infrastructure, and your most likely buyers.

At Hammond Realty, our experience handling thousands of farmland transactions across Saskatchewan has given us unmatched insight into how to position and package farmland for maximum value. We don’t just look at acres and comparable sales; we understand how buyers think, what they compete for, and how to structure a sale so no value is left on the table.

If you’re thinking of selling, don’t leave money on the table. Start the conversation with Hammond Realty today. We’ll help you decide whether selling as a unit or in pieces will maximize your farm’s value.

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