I suggest visiting with a your tax person, accountant and a lawyer. Maybe all the same person. Visit with them and learn implications of a land sale from them. For instance, capital gains? Loss of depreciation? Change in liability exposure? How many acres does a building site have to be to remain agricultural? (20 acres in my state).
The "look-back" in my state is 7 years. Arms length sale probably not an issue. Sale to relative below market value might be an issue someday.
Maybe make a list of all the impacts of the land sale you can think of (good and bad) to show the folks above? They may add to the list or your list triggers thoughts/comments from them.
My guess is your dad owns the property but I don't know. How does the sale impact your dad's (mom's?)retirement? After the sale of the land, how much money will be left to invest after all the expenses of the land sale have been paid? How does the present land rent compare to income from new investment after all expenses have been paid?
It is almost is as much work to keep 10 cows as 40.
If the rent will pay the ownership expenses of the land maybe just keep it awhile longer until future plans become more clear. Is hiring part of what you do now custom farmed an option? It is far out in the future but will any of your children potentially want any of the land someday?
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