Absentee Landowners

Unlock the Full Financial Potential of Your Farmland with a 721 Exchange

Thinking of Selling Your Farmland? A 721 Exchange Could Be the Smarter Move.

If you’re an absentee farmland owner considering a sale for financial reasons—whether it’s for retirement, estate planning, diversification, or simply to reduce management headaches—there’s a better option than a traditional sale. It’s called a 721 exchange, and it could offer you the liquidity you need without triggering a heavy capital gains tax bill.

1. Defer Capital Gains Taxes

Selling farmland can trigger significant capital gains taxes, especially if the property has appreciated over time. A 721 exchange defers those taxes, allowing you to retain the full value of your equity and put it to work immediately.

2. Turn Dirt Into Diversified Income

With OP units, you’re no longer reliant on a single asset in a single location. Instead, you gain exposure to a diversified portfolio of income-producing real estate, often including farmland, industrial properties, and other asset classes.

3. Access Liquidity Over Time

Many REITs offer the option to convert OP units to REIT shares, which may eventually be sold on the public market—giving you a measured, tax-efficient path to liquidity when you need it.

4. Eliminate Management Burdens

As an absentee owner, you’re likely dealing with the hassle of leasing, maintaining, or making decisions from a distance. By exchanging into a REIT, you transfer those responsibilities to a professional management team.

Who Is This For?

Absentee farmland owners who:

Are ready to step away from active ownership
Want to unlock value without immediate tax consequences
Are looking for reliable, passive income
Prefer to diversify beyond a single property or geography

The Bottom Line

If you need to unlock capital from your farmland investment, a 721 exchange may offer better long-term value than an outright sale. You keep your equity working, diversify your income, and avoid an immediate tax hit—while stepping away from the day-to-day management of the property.

LET’S CONNECT

Learn more about a 721 Exchange and if this solution is right for your situation. Complete the contact form and we’ll be in touch.

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Randy Dickhut’s fifty year career in agriculture combining production and professional farm management experience has provided him with unique insight into the business of owning and operating a farm.

Randy grew up in western Illinois and actively farmed for thirty years beginning in the 1970’s growing the family operation to over 1,600 acres with twenty different landowners before he left the business in 2002. During his farming tenure, Randy and his brother were early adopters of no-till and experimented with cover crops among other leading edge production practices of the time. One of Randy’s primary responsibilities in the operation was the contact and communication with the landowners including writing a quarterly newsletter.

In 2002, Randy began a twenty year career with Farmers National Company initially managing farms for non-operating landowners in Missouri and Illinois. During this time, he also obtained the Accredited Farm Manager designation from the American Society of Farm Managers and Appraisers. In 2006, Randy became the Vice President of Client Relations whereby he worked with new clients, larger clients, and generational transition issues. While at Farmers National, Randy worked with landowners of all sizes ranging from 60 to 140,000 acres.

Randy took on new responsibilities for Farmers National when he became the Senior Vice President of Real Estate Operations. As the managing real estate broker for the company, Randy oversaw 200 agents conducting business in 29 states generating $400 to $750 million in land sales annually.

Over his ag career, Randy has had the opportunity to work firsthand with landowners, investors, and farmers in states across the country getting views into the regional differences in production and operations.

Randy has been a prolific writer about farmland, most recently producing hundreds of articles for Farmers National and Agricultural Economic Insights. He has also been a contributing writer and source for multiple ag publications and programs.

Ron Rabou is a Wyoming native whose roots run deep in American agriculture. Rabou’s farm was featured as one of three national finalists by Farm Journal for Top Producer of the Year.

He is a staunch advocate of the ag industry and agriculture producers nationwide, is co-host of the AgInspo Podcast, a columnist, and a nationally known author and speaker. His newest book “Make Your OWN Way” shares his personal story of breaking the mold and creating independence in American agriculture.

He is a member of the Cheyenne Rotary Club, on the National Board of Directors for the American Society of Agriculture Consultants, a board member of the Laramie County Weed and Pest District, a board member of the University of Wyoming’s College of Agriculture, Life Sciences and Natural Resources, and is a graduate of the University of Wyoming with a BS in Agricultural Business.

He resides on his farm near Albin, Wyoming with his wife and 3 sons.

As an accomplished agricultural investment executive, Ray brings deep industry and market insight to help clients build and improve their businesses, achieve their capitalization goals and enhance their operational performance. Throughout Ray’s career, he has led preeminent agricultural and timberland finance organizations within all of North America while also exploring markets in Brazil, Australia and New Zealand.

Ray’s background includes positions such as recruitment, talent management, leadership, property management, investment originations, underwriting, credit and portfolio management.

Ray has a B.S. in Agricultural Business from the University of Tennessee at Martin and an MBA from the University of Arkansas.

Jared Hollinger

CEO/Sr Managing Partner

LinkedIn Profile

As CEO and Sr. Managing Partner of Sower Investment Partners, Jared has over two decades of experience guiding real estate investments of all types. Jared has successfully navigated the real estate economy with holdings in single-family, multi-family, agriculture, commercial, retail and tax liens. His investment strategies also include venture capital and debt investments.

Jared’s professional mission has been facilitated by a belief in strong systems, processes and partners, coupled with solid industry insight and work ethic. Throughout his entrepreneurial career, Jared has found value in real estate related assets, fully realizing that proper planning leads to penultimate outcomes. Over the course of his career, Jared has been involved with the purchase and disposition of over 5,000 properties of various asset classes.

Jared attended the University of Nebraska-Lincoln, graduating in 2002 with a degree in Construction Management. He currently serves on several non-profit venture capital boards and serves as a Director for Westgate Bank.

Jared and his wife, Kim, reside in Springfield, Nebraska, with their four children and are actively involved at Mercy High School and St. Columbkille Catholic Parish.

Eric Mueller

Founder, Managing Partner

LinkedIn Profile

With a 20 year career in farmland brokerage and management, Eric has procured, sold and managed thousands of acres of farmland, worth several hundred million dollars in value. As an established leader in the agricultural land and management sector, his clients and partners have included individuals, families, private and public funds, institutional investors and bank and trust company clients throughout the United States.

A graduate of the University of Nebraska, Lincoln, Eric is an active member of many local, state and national real estate associations as well as civic and church boards, fundraising and capital campaign committees.

Matt Pickens

Sr. Managing Director

LinkedIN Profile

Matt Pickens is Senior Managing Director and Chief Investment Officer at Sower Investment Partners. He has nearly 15 years of private equity and venture capital investment experience across multiple asset classes, including commercial real estate, energy, oil and gas, and healthcare.

As our CIO and a member of the firm’s Investment Committee, Matt is responsible for developing and executing on the firm’s investment strategies and risk management policies. His operational responsibilities include analytics and due diligence oversight, transactional structuring, and financial reporting.

Matt holds a Bachelor of Science in Business Administration with an emphasis in Finance from the University of Nebraska-Lincoln, a specialization in Accounting from University of Nebraska at Omaha, and a Juris Doctor (Magna Cum Laude) from Mitchell Hamline School of Law. He is a licensed attorney in the state of Nebraska, as well as a Certified Public Accountant certificate holder.

Todd Mekelburg serves as Director of Gift Planning for the Nebraska Community Foundation based in Lincoln. Prior to joining NCF, Todd served as Director of Planned Giving at Loma Linda University Health in southern California where he helped families realize their charitable gift planning goals.

Todd grew up in Yuma, Colorado, but he has a long connection with Nebraska. His great grandparents met and married at Union College in 1893, then farmed in the Lincoln and Amherst communities before eventually settling in northeast Colorado. He attended high school near Shelton, Nebraska and then completed a degree in business administration and accounting at Union College in Lincoln.

After working in charitable gift planning in Maryland and Colorado, Todd and his wife, Janya, settled in Lincoln to raise their family. They have two adult children, Drew and Mandy. Todd enjoys traveling to new places and spends time on the golf course, pickleball court, and biking the trails in and around Lincoln.

Fred is an Accredited Farm Manager, Accredited Agricultural Consultant, and an Accredited Land Consultant. Fred has been an active member in ASFMRA for over 39 years at the state and national levels.

Prior to his retirement, Fred was the Director of Acquisitions for farmland investments at AgVictus Capital Management, based in Alpharetta, GA. He has over 40 years of experience managing vertically integrated agricultural companies, representing public pension funds for farmland investments, managing large-scale direct farming operations, representing private individuals, trusts & corporations for farm management/consulting and brokering agricultural real estate sales.

His diversified experience included developing a 50,000 acre/six state farming operation for a private equity firm where he built, managed and performed direct farming operations for the largest beef confinement feedlot in the US. Fred also managed 18,000 irrigated acres where he developed almond, hazelnut, and macadamia tree nut farms. His roles include EVP at the Westchester Group, Senior Asset Manager at BGMI Investments, Senior Agricultural Portfolio Manager for Wexford Capital and Farm Manager at the Foxley Cattle Company.

During his career, Fred has sold, managed, and/or farmed in 38 states with 44 different crops including almonds, pistachios, hazelnuts, and macadamia nuts. Fred brings an in-depth level of diversified experience in agriculture investment and operations management in the United States with some experience in Australia.

Jim is the retired President and Partner of Farrell Growth Group (FGG), an agribusiness consulting firm founded in 1997. FGG provides general agricultural consulting, financial benchmarking to crop protection companies and brokerage/M&A services. FGG also facilitates peer-to-peer groups of top ag retailers in the U.S and Canada.

Prior to founding FGG, Jim served as CEO and President of Farmers National Company (FNC) for 15 years. Headquartered in Omaha, NE, FNC is the nation’s largest farm and ranch management company. The 93-year-old employee-owned company today manages 5,000 farms for more than 6,000 landowners and is responsible for 2 million acres of farmland in 29 states. The company is also one of the country’s largest agriculture-related real estate brokerages, selling more than 600 farms and ranches per year.

Jim was appointed to the Federal Reserve Bank of Kansas City’s Board of Directors in 2015, and served as Chairman until his board retirement in 2021. He has also served on the Omaha Federal Reserve Branch Bank Board of Directors with 4 years as its Chairman. Additional roles include 6 years of service on the Board of Directors of the Nebraska LEAD (Nebraska Agricultural Leadership Council) Program, ending in 2019.

Kenton’s 48-year affiliation with agriculture began in 1972 with a Bachelor of Science degree in Agronomy from Kansas State University. Upon graduation, Kenton spent 15 years with the Kansas Cooperative Extension Service, earning the Achievement Award and ultimately becoming President of the Kansas Extension Agricultural Agent Association, serving on numerous committees.

Kenton then transitioned from a public educator role to private banking when he used his skills to manage assets with the American Society of Farm Managers and Rural Appraisers as an Accredited Farm Manager. In 1995 after a merger, Kenton continued farm and ranch property management with Farmers National Company where he remained until 2020, ultimately being promoted to a new business development role, working closely with strategic growth planning in all business lines.

Now retired from full-time work, Kenton continues to work with Farmers National Company as a Real Estate sales associate, and has earned the top tier sales award in the President’s Circle.