How to Sell Kentucky Land Held in a Trust in 2026

Kentucky land remains a high-demand asset—especially when it supports agriculture, recreation, timber, or future development. Of Kentucky’s 25.4 million acres, 48% is farmland, meaning nearly half the state’s footprint is tied to farming and rural land ownership patterns (according to the Kentucky Farm Bureau Ag Facts Brochure 2025). That scale shows up in the state’s economy, too: Kentucky agriculture generated $8.3 billion in agricultural cash receipts in 2024 (per Kentucky Ag Connection).

If your Kentucky property sits inside a trust, you can absolutely sell it—but you need to follow the trust document, confirm trustee authority, and manage closing details correctly. This guide explains how to sell Kentucky land held in a trust with fewer delays and fewer legal surprises.

Why Kentucky Land Sales (Including Trust Sales) Are So Common Right Now

Kentucky’s land market is heavily shaped by small, family-held tracts rather than massive operations. The average farm size in Kentucky is 179 acres, compared to the national average of 463 acres (from the Kentucky Farm Bureau Ag Facts Brochure 2025). That matters when you sell from a trust because many trust-owned properties are legacy parcels—often split among beneficiaries—where speed, clarity, and clean paperwork can be more important than “perfect” timing.

Kentucky is also dominated by smaller farm businesses. Over 63% of Kentucky farms (exactly 43,585) have annual sales under a certain threshold and are largely small family farms (per the Kentucky Farm Bureau Ag Facts Brochure 2025). In practice, that means your buyer pool may include neighbors, local operators, and families expanding acreage—not just institutional investors.

Land use adds another layer to pricing and marketing. In 2022, land use on Kentucky farms broke down as Cropland 49.6%, Pastureland 26.1%, Woodland 20.3%, and Other 4.0% (according to the Kentucky Farm Bureau Ag Facts Brochure 2025). When your trust property contains a mix of pasture, tillable ground, and woods, you can position it for multiple buyer types—farmers, recreational buyers, and even timber-focused investors.

National pricing signals also influence expectations. The United States pasture value averaged $1,920 per acre, an increase of $90 per acre (4.9 percent) from 2024 (per the USDA NASS Land Values 2024 Summary (August 2025)). Even though that figure is a national average (not Kentucky-specific), buyers and sellers often reference it when negotiating pasture-heavy tracts.

Understanding Land Trusts in Kentucky (What Changes When You Sell)

A trust is a legal arrangement where a trustee holds and manages property for beneficiaries. Selling land held in a trust typically requires you to follow the trust agreement exactly—especially around trustee powers, beneficiary consent, and how proceeds must be distributed.

If you are a beneficiary (not the trustee), you usually cannot sign a deed or bind the trust to a sale unless the trust document grants you that authority. If you are the trustee, you must act in the beneficiaries’ best interest and document your decisions carefully.

Step 1: Review the Trust Agreement Before You Talk Price

Start with the trust instrument. It should tell you:

• Who the current trustee is and whether successor trustees must be appointed
• Whether the trustee can sell real estate without beneficiary approval
• Any requirements for notice, written consent, or appraisals
• How the trust must handle sale proceeds (distributions, reserves, or reinvestment)

If the trust language is unclear, have a Kentucky real estate attorney review it before you accept an offer. Fixing authority problems after you go under contract can cost you the deal.

Step 2: Identify the Highest-Value Use of the Property (Cropland, Pasture, Woodland, or Mixed)

Kentucky land value depends on what the land can reliably do. Because Kentucky farm land use includes cropland (49.6%), pastureland (26.1%), and woodland (20.3%) (per the Kentucky Farm Bureau Ag Facts Brochure 2025), buyers often price each “component” differently. A strong listing (or a strong cash-offer evaluation) typically starts by answering:

• How many acres are tillable, and what’s the crop history?
• How many acres are fenced/usable pasture?
• Is the woodland marketable timber, hunting ground, or both?
• What access, utilities, and road frontage exist?

Local context matters, too. For example, Christian County leads Kentucky with 261,610 acres of cropland (according to the Kentucky Farm Bureau Ag Facts Brochure 2025). If your tract is in a high-production region—or near one—farm buyers may pay more for soil quality, field layout, and drainage than for cosmetic improvements.

Step 3: Price the Land With Evidence (Not Guesswork)

Use at least one of these approaches, and ideally two:

1. Professional appraisal: Best for trust documentation, beneficiary transparency, and defensible pricing.
2. Comparable sales: Focus on true land comps (not house comps) with similar access, acreage, and land mix.
3. Income potential: Consider cash rent, crop share, hunting leases, or timber potential where relevant.

If the land includes meaningful pasture acreage, keep broader market signals in mind: the national average pasture value reached $1,920 per acre (up 4.9% from 2024), per the USDA NASS Land Values 2024 Summary (August 2025). You still need Kentucky-local comps, but national benchmarks can help frame expectations during negotiations.

Step 4: Choose the Right Selling Path for a Trust-Owned Property

Your best strategy depends on your timeline, the trust’s requirements, and how much work you want to manage.

Option A: List with a real estate agent

• Best for: maximizing price, competitive markets, and properties that show well with photos, maps, and clear access
• Trade-off: longer time on market and commission costs

Option B: Sell to a land-buying company (cash sale)

• Best for: speed, simple closing, and situations where the trust needs liquidity quickly
• Trade-off: the offer may be below full retail value

Option C: For Sale By Owner (FSBO)

• Best for: sellers with time, land knowledge, and comfort handling negotiations and paperwork
• Trade-off: higher legal risk if the trust requirements or disclosures are mishandled

Whichever route you pick, remember the big picture: nearly half of Kentucky’s land is dedicated to farming (per Kentucky Ag Connection). That keeps demand steady for usable acres, but you still need a strategy aligned with your trust’s deadlines and beneficiary needs.

Step 5: Prepare the Land and Paperwork (What Buyers Ask for First)

Land sells faster when it is easy to understand and easy to tour. Before you market:

1. Confirm access and maintain roads or gates so buyers can view the tract.
2. Order a survey (or locate an existing one) to reduce boundary disputes.
3. Compile tax bills, deed history, and any leases (farm, hunting, or mineral where applicable).
4. Document land use and productivity if relevant to buyers.

If your tract is cropland or has cropland potential, buyers may ask about local production norms. For context, Kentucky planted 1.6 million acres of corn in 2023, harvested 1.5 million acres, and produced over 280 million bushels at an average of 187 bushels per acre (according to the Kentucky Farm Bureau Ag Facts Brochure 2025). Kentucky also planted 1.83 million acres of soybeans in 2023 and harvested 1.82 million acres (per the Kentucky Farm Bureau Ag Facts Brochure 2025). You do not need to grow these crops to sell your land—but these figures reinforce that row-crop agriculture is a major driver of buyer interest in many counties.

Step 6: Market the Property With Buyer-Ready Details

If you are not taking a direct cash offer, market with information that answers buyer questions upfront:

• Acreage breakdown (cropland vs. pasture vs. woods)
• Access points and road frontage
• Utilities, water, and any improvements (fencing, barns, ponds)
• Zoning and allowable uses
• Maps: aerial, topo, floodplain, and boundary overlays

Also tailor the message to the most likely buyer. Because Kentucky’s average farm size is 179 acres (vs. 463 nationally), per the Kentucky Farm Bureau Ag Facts Brochure 2025, many buyers search specifically for manageable tracts they can operate themselves—making good access, usable acres, and clear boundaries especially persuasive.

Step 7: Handle Trust-Specific Legal Requirements Before Closing

Trust-owned land sales often fail at the finish line because authority and documentation were not finalized early. Protect the deal by confirming:

1. Trustee authority: the trustee has explicit power to sell and sign.
2. Beneficiary consent: collected in writing if the trust requires it.
3. Title readiness: clear liens, old mortgages, boundary exceptions, or probate-related clouds.
4. Tax planning: coordinate with a tax advisor on basis, capital gains, and how the trust will report/distribute proceeds.

Work with a Kentucky real estate attorney and a title company experienced with trust conveyances. Clean trust paperwork reduces buyer objections and lender delays.

Step 8: Negotiate Terms, Close Cleanly, and Distribute Proceeds Correctly

Once you receive an offer, negotiate more than just price. Pay attention to:

• Contingencies (financing, inspections, survey, timber review, environmental)
• Closing timeline and possession terms
• Who pays which closing costs
• Prorations for taxes or lease income

After closing, the trustee must distribute proceeds exactly as the trust directs—after paying liens, closing costs, trustee expenses, and any professional fees. If the trust has multiple beneficiaries, clear reporting and documentation can prevent disputes later.

Final Thoughts

Selling Kentucky land held in a trust is absolutely manageable when you treat it like two projects at once: (1) a standard land sale and (2) a compliance exercise with the trust document. Kentucky’s land economy remains deeply agricultural—48% of the state’s 25.4 million acres is farmland (per the Kentucky Farm Bureau Ag Facts Brochure 2025), and the state produced $8.3 billion in agricultural cash receipts in 2024 (according to Kentucky Ag Connection). That combination helps keep buyer interest strong, especially for well-documented tracts with clear access and a clean title.

Review the trust, prove authority, price with real evidence, and match your selling strategy to your timeline. When you do, you can close confidently—and distribute proceeds the right way the first time.