Re: How do we get the next generation started farming???

Posted by jackinok on September 24, 2012 at 09:10:04 from (162.58.82.136):

In Reply to: How do we get the next generation started farming??? posted by JDseller on September 24, 2012 at 07:36:18:

let me start by asking you how you started.that pretty much sums up how you do it today! MY opinion:in reply to yours,
(1)capitol has always been a problem in this buisness(and every buisness for that matter).and i dont think that changes. it is horrendously expensive these days thats for sure, but ONE thing is certain.SOMEONE is making money at these prices,or you would see land for sale everywhere.when crop prices go up,so does land values,been that way since time began,and wont change.but their is hope in that those higher prices makes that land more profitable.solution,do what you and i did ,ride out the lean times,dont expect to make tons of money at this. because your not going to make a lot in most cases.live as cheaply as you can,get by with less than perfect equipment,and the mainest thing,realize that crop check is not YOURS first.its the farms check,your check is whats left after everythings paid and next years inputs are there.And like ALL buisnessess that have the best chance of succedding,have the operating capitol going in to live on for the first few seasons.wheather that comes from a day job,or whatever.
(2) a problem for sure,and not one easily answered, because there are so many variables involved. But heres one way of getting value from your land when selling at a reduced price to children, make a living trust , where you live on the land ,and children supply your care. nursing homes ,retirement homes are expensive also.2500 -3500 dollars a month add up.if those kids are capable of providing this care at home,then the cost of retirement would be less.AGAIN far more commitment,sacrifice, and work on their part,but thats part of starting any buisness.
(3) again true. but ,it can be profitable for both parties,and in a certain way it Might be to a starting farmers advantage to lease a portion of his land. one way this could help is if like this year we had a bad crop year,without those profits from a good crop,they might be in a better position to not lease some land back,scale back on his operation and keep the core part of his owned land that he has to make payments on intact. couldnt do this if you were actually making payments on a piece of land of course.but it could improve his cash position in those lean years.
(4) this trend wont reverse until that land becomes a liability to those landholders.that wont happen as long as folks pay rent/leases.as long as its profitable for farmers to pay these high prices,nothing will change there,when crop prices get low enough they will simply pull back onto there own land,land prices will then fall because absentee owners will become how shall we say "land poor". till that does happen this wont change and historically never has. but once again the smart player scales back,protects his core farm,and in that way is able to ride out some of these highs and lows. MY own personal plan,i want roughly the same percentage of my age in the higher risk(or leased) ground.starting i can accept more risk simply because i have more time to pay if something comes unwound. when i get 70 i want that amount to be land i can control safely or that is realitivly safe because its paid for. I actually know of one couple in their early thirties, who average farming more than 2500 acres and actualy OWN exactly 5 acres. they barely have enough room to park equipment on land actually owned by them.this actually works well for them because it gives them MORE flexibility. so it can work,it just requires adjusting to.
now to get to your deal,and im going out on a limb here and assume this land is owned by you. the earning potential of this land,if it can be leased out by your heirs is near 100% "IF" they simply do not farm it themselves. IF that makes any sense. all it requires is adjusting.you dont HAVE to farm to have in come,all the land requires is for SOMEONE to farm to be profitable.again another retirement strategy,simply lease that farm to a neighbor,live on the income,your children have the option of doing the same ,farming ALL OR PART(A VERY GOOD IDEA,simply let the leased out land pay for your farming to start) if they deam it more profitable,or selling it if they become trapped in the "land poor" category.The ONLY way this happens is if the land is sitting idle,and has no income to pay the taxes.at that point,and that point ONLY does it become a liability.
again my opinion ,the rules dont change the way i see it,to get anywhere with any buisness requires dedication and sacrifice.

Replies:

Add a Reply Name: E-Mail: Subject: Comments: Optional Link URL: Link Title: Optional Image URL: Optional Video Title: Optional Video URL: Advanced Posting Options Email Notification: If you check this box, email will be sent to you whenever someone replies to this message. Your email address must be entered above to receive notification. This notification will be cancelled automatically after 2 weeks.   Advanced Posting Tools   Upload Photo  Select Gallery Photo  Attach Serial # List  Return to Post

TRACTOR PARTS	TRACTOR MANUALS

We sell tractor parts!  We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]