What I've never seen discussed in all the talk about 1031 land exchanges and investment in farm land is the impact on agricultural retailer businesses. Or is there any impact at all?



When a landowner at the edge of a city sells his land and moves to another farming area, that new owner displaces agricultural retailers' past customers. Are most of the new owners open to third-party ideas in their farming decisions and excellent potential customers?
Are 1031 landowners replacing farmers who were failing, taking over land that was rented by a local farmer or spending money to make long-term improvements such as soil fertility and terracing?



I'm sure this moving around of farmers and landowners is having an impact. I'm just not sure what that impact might be, but it has to open competition among retailers for new business. This means ag retailers need to keep an eye on the target for how to make that first sale to the new owners and provide service equal to or better than expected.



Aside from the 1031 land exchanges, what is occurring in dealings between retailers and representatives of absentee landowners? More and more absentee landowners are persons who don't understand farming because they left the farm and now have inherited it. Even potentially worse situations could be dealing with land owners who have only invested in rural land because land is a way to accumulate wealth.



A recent book announcement I saw led off by saying the author can teach people the secrets of the super wealthy. "The truth is most Americans could save thousands of dollars every year if we followed the tax strategies millionaires use to protect their wealth. Their secret: using real estate to slash their taxes." The author promises "how to use your home and investment properties as legal tax shelters."



Let's hope persons looking to become mega-millionaires don't try to milk rural America as investment property more than is already happening.