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721 Exchange for Farmland

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Sower’s Legacy Farmland Fund – a 721 Exchange Fund created specifically for farmland. 

Federal law created 721 Exchanges decades ago establishing them as a solid, tax deferred, real estate transaction option.

“[A 721 Exchange] is going to be a simpler world.”

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How It Works

In a 721 Exchange for farmland, a farm is transferred into a real estate fund. This process defers capital gains taxes yet the present value of the farm is realized. 

The farmland owner receives shares in exchange for their farm. These shares represent the value of all farms in the Fund.

Because shares are much more flexible and liquid than a farm itself, shareholders can retain their shares, divide them, gift or sell them.

Why a 721 Exchange For Farmland 

A powerful farmland succession, transition and estate planning solution, existing for decades, underutilized until now.

A 721 Exchange converts an illiquid asset like farmland into flexible shares that can then be retained, divided, gifted or sold. 

721 Exchanges keep families, farms and legacies intact.   

Benefits for Farmland Owners

Retain Control

Owners can retain control over the tenant decision-making process to continue farming the land and also can repurchase the farm in the future.

Estate Planning

Unit ownership leaves the estate intact with no capital gains, plus the flexibility to gift, bequest, or liquidate in flexible increments.

Liquid Assets

Unit holders have access to liquidity after the 1-year contribution period has expired; access that doesn’t require the sale of the asset.

Professional Management

Professional farm managers maximize returns with the right leases, oversight, capital improvements and partnerships.

Revenue Diversity

Ownership in a broad portfolio means access to revenue sources like wind, solar, wetlands, easements, mineral rights, etc.

Investment Security

Diversify holdings and insulate against factors that are often outside of an individual landowner’s control.

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