What to do with the Farm

oldmanriver · #1 09/21/08, 08:26 AM

My wife and I are getting old . The work on a farm is hard as most of you know . We have 3 kids that none show any interest in farming . We love this place all 130 acres and have tryed to maintain it so we never take more than we put back , I know when we are gone it will be sold and I know it want matter to us then but

My fear is that without land they will not be able to make it if TSHTF someday. They all live payday to payday and have never saved a dime . Most months they have to borrow from us to get by . I love my children but how can I get them to see the importants of owning land that is free and clear . We have money enough to loan them and will leave them with 100 k each unless something major happens before then . My guess is that in a very short time the money will be gone then the farm will be sold to get more money . We are the 3rd geniration on this land I so hate to see it gone but what can we do ? Sorry was just feeling down this morning and had to get it out . Thanks for listen :

Cornhusker · #2 09/21/08, 08:42 AM

Maybe you can find someone who is interested, maybe a young family and help them get started?
Find someone who will love the place and raise some kids on it.
Sell it to them and set it up so your kids get the money someday.
Beats having it sold to a large farmer who will level it or a developer who will divide it all up.
JMHO

chickenista · #3 09/21/08, 08:57 AM

Cornhusker is right... bloodline is important, but your farm has been a farm forever and a farm it should stay.
There should be biscuits made in the kitchen and chickens in the yard etc....
I would find a family who is used to farming or wants to farm and sell it. Put the money in trust until you die and then peel it off bit by bit too your kids.
I see enough farms going under the dozer and popping up houses.. land sold by uninterested inheritors... sell it first and maybe help the new family get it going.. if you can't teach your kids where the sweet water is on the farm or what time of year the sun hits where, teach it to someone who would dearly love to learn.

ceresone · #4 09/21/08, 09:15 AM

Well, I'm where Oldmanrives is too, and my take is a bit different.
You have 100k to leave each of them--without selling the farm?
Then, I would put the farm in everyones name, and fix it where it couldnt be sold-and whichever kid, grand, or whatever, wanted to live on it and farm, would have primary possession of it. I know noone's going to agree with me--but that keeps the land forever as a backup, whatever happens.

The Paw · #5 09/21/08, 09:32 AM

You may want to consider the possibility of a land trust. Without getting into the technical details, getting your land involved with a land trust can allow you to put restrictions on how the land is to be used generations into the future.

If you go to the link below, you will find a number of land trusts operating in Kentucky. Two of them, the Bluegrass Conservancy and River Fields Inc., both have the preservation of working farms as part of their mission.

http://www.ltanet.org/findlandtrust/...ntucky21#local

If this is something you find interesting, I can tell you a little more about how land trusts work in general. You can post here asking for more details or send me a PM, and I would be glad to answer questions.

ksfarmer · #6 09/21/08, 10:11 AM

We have the same basic situation. Both our sons have left the farm and have good jobs. No interest in the farm. I don't believe in puting any restrictions on what is to be done with the land once we are gone. Too many variables in the future, and no way can you plan what will be best. I have seen some try to do the trust with restrictions on use and usually that just caused more problems for all concerned.
If you know of a young family that is interested, see what you can work out with them, otherwise leave it to your children to do as they wish.

Beeman · #7 09/21/08, 10:15 AM

Why any concern on leaving anything? Leave the land and possibly money to a trust or organization that would continue to farm it.

Funny how the ones that dream of being a farmer will never be left land and can't afford a farm.

Alice In TX/MO · #8 09/21/08, 10:16 AM

We are *going* to be in that situation in fifteen years or so. Both sons are married with children, living in major metropolitan areas, and I don't think there's any interest in small town life at all.

Have to think about this one for a bit.

sidepasser · #9 09/21/08, 10:25 AM

My neighbor who died a few years ago had a beautiful 400 plus acre farm with lakes, cabins, house, etc. Paid for. I asked once about buying the 20 acres next to me and here is what he told me:

He put his land in a trust so that the land cannot be sold for three generations. The kids, none of whom give a flip about farming, could decide who would live there or all of them could, but they only had a life estate and the land would then pass down to their kids. Their children could farm it, live there, etc. but the land couldn't be sold. This would continue until there were great grandchildren and after the greats passed on, the land could then be sold.

Who ever lived on the farm would have to pay all taxes on it, could farm it, but not divide it up. This fella was VERY smart, and a doctor so he did leave enough money to pay any real estate taxes and the death taxes (land valued at over 5 million dollars in today's lousy market), but left that money with the stipulation that the probate court would oversee any disbursements along with a firm of attorneys.

He told his children what he had done and he said of course they all got really mad about it. He told them that he had worked since getting out of the military in 1945 to build that place up and he wouldn't want it sold off to developers without giving someone in his family the opportunity to use it as a farm. Right now there is a son living on the place and he is caretaking it. When he dies, the remaining family members will have the option to live there or hire a caretaker to look after it. And down through the generations. The old man was hoping that perhaps not his kids, but perhaps his grandchildren might one day want the place to run as a farm and should be given the opportunity to do so.

That is how he set it up so unfortunately for me, I couldn't buy the 20 acres..but then again, fortunately I never have to worry about a subdivision adjoining me on the three remaining sides of my property.

It certainly did winnow out the wheat from the chaff as the ones that knew they wouldn't "get anything" certainly didn't come around..and the one son that did, is living the good life free of charge except for the land taxes. It is a beautiful property but there is nary a cow or other livestock and he simply cuts the fields and lets the hay rot on them, but at least he is keeping the place mowed and some of the fences maintained.

It might be a way to save your place for your grandchildren or great grandkids..you never know when the farming bug will take hold in a future generation.

I am in the same shape, have three kids and none care about farming. My mom's place is going to my son, but he has already said he won't farm it, but will live there and take care of it. My daughters live in subdivisions and have no interest in my farm, so I will likely sell it in a few years and buy a much smaller place that can handle one or two horses and be done with it.

Already have developers sniffing around, but I will make a better deal to someone who wants a farm than sell it to a developer. I am the next to the last person on my road that has any acreage at all, the rest are subdivisions and one acre lots. Soon to be a huge planned city at the end of my road, so I know that I will sell in the next few years and buy somewhere else further out and away from the suburbs.

You have to do what you have to do, it's too bad that most kids nowdays don't want or have the time to farm. And when they do realize that peace of mind is better than "having stuff" and living right on top of others, by then land has gone out of sight and they can't afford to buy a farm. Then they may wish that they had taken us older folks up on our offer to live on the family farm.

Sad that you are going through this, my thoughts are with you as I am looking at myself in your post (though my farm hasn't been in my family for as long, my farm was originally est. in 1795 and contains a family cemetary of the people who did farm it up until 1968). I hate to see all that gone, I have the original "home place" of the section of land, all that remains is my 32 acres, the rest has been subdivided off.

I'm hanging on as long as possible, but it looks like sometime in the next five years I will be forced to make a decision about where to move to and then sell. I've been here 22 years and bought the place as overgrown raw land with just the chimney from the original house and an old dry well.

I've built it up over time and as funds allowed to what I have now and it's hard to leave, but even harder to stay knowing that each year I can do less and less physical labor and can't even find people who will work to do the harder stuff. I'm sure you know what I mean there!

take care, it's never easy is it?

BetsyK in Mich · #10 09/21/08, 10:39 AM

around your area and see if there is a young guy/gal just getting started who is maybe looking to pick up some more acreage. You could sell the acreage outright, or lease with an option to buy or rent it to him/her. When my dad started farming he picked up several pieces of land from older folks as they came up for sale. He bought the 100 acre farm right to the north of ours from an elderly couple after he had rented it for a few years. Folks drove the older couple into town to transfer the money and get it all signed and sealed and the old gentleman passed away in the car on the way home from town. Folks always said Mr. Brigham could finally let go since he knew his farm was in good hands. If you chose to do that you could continue to live in the house if you wanted to and it would relieve you of the responsibility of working the land. Perhaps if there were not the acreage one of your kids may decide to live there or at least keep the home place when your done with it. Just a thought.

Jennifer L. · #11 09/21/08, 10:43 AM

I don't want to be mean, oldmanriver, but it's like this: As soon as you are both gone, the farm will be on the block. If your kids are borrowing money from you because they don't do well with saving, etc, a mere 100K at your death will not last them long. It's a new car or two, is all, or an addition on their house and a few expensive toys. Without going into it, my situation is something like yours, and my heirs have no interest in the place except as a financial asset.

If you want to do something for the farm that's been in your family (and if you are like me the farm almost seems another person/personality in the family) you have the freedom to do right now what will protect the farm. Depending on your family, perhaps there are grandchildren who would be interested in the place? You might want to think about keeping the fields closest to the house and barns and letting the others go to farmers around you who will continue to crop the place.

It's good that you want to keep the place in the family, but don't make it difficult for yourself trying to do it.

Good luck, these are hard decisions to make.

Jennifer

Gercarson · #12 09/21/08, 10:45 AM

This farm has been in the family for three generations - that means there are other descendants who have a very real connection to this "family" farm. If you are leaving your own children enough money to (in my opinion) do anything they want to secure their own future - why not think of leaving the farm to other family members who will cherish it and use it to your ideals? Unless there was only a very direct lineage, there must be others who feel a familial connection to your dedication.

RosewoodfarmVA · #13 09/21/08, 02:09 PM

My 2c. Sell it to someone who will treasure it and work it and love it. We obtained our 123 acre farm from an older couple that had farmed there all their lives. They had 4 children, all of whom chased the big money and left the farm for city living. They were 92 and 90 years old, and didn't want to sell, but knew if they kept it til they died, it would be sold anyway. We were able to purchase it in 2001, and have since restored the old farmhouse, and installed new fencing and have made this a profitable farm operation. You should have seen the happiness on their faces when we said we were planning to restore the 180 year old house rather than bulldoze and replace it with a modular as the realestate agent suggested to buyers. Sure it was old and dilapidated, but we saw the potential, where others wanted new. This farm looks better than it has for a long time. And it is owned and farmed by a family that loves it.

If your children don't want to farm, it's gonna get sold anyway, sell it while you can control who buys it, so you can ensure it goes to someone who will love and take care of it, rather than a speculator.

#14 09/21/08, 02:17 PM

Hey Rosewood farm. Are you somewhere around Danville/Yanceyville? You look like a guy I met at Ben's house one time.

RosewoodfarmVA · #15 09/21/08, 02:30 PM

An hour away from there. Ben who? I know several Ben's, but not one in the Danville area.

Ravenlost · #16 09/21/08, 02:35 PM

We are setting up a trust for our farm as we don't want it sold and we don't want the 33 acres of hardwoods clear cut. We planted those trees in a wetlands reclaimation project and want it to stay that way. We're already a registered wildlife refuge and want that to continue as well.

My two kids live in different states and my hubby has no children (he met mine when they were teens). He has talked to my son about our plans and we will make him the primary caretaker of the farm when we pass away. Fortunately, he loves this place and has agreed to take over when we are gone.

I would definitely urge you to set up a trust.

#17 09/21/08, 02:38 PM

Quote:

Originally Posted by RosewoodfarmVA

An hour away from there. Ben who? I know several Ben's, but not one in the Danville area.

He builds storage sheds in Blanche, near Yanceyville. And preaches at the former Amish church there. I guess, now Anabaptist?

Tlduker · #18 09/21/08, 02:40 PM

You could give it to me.

PlowGirl · #19 09/21/08, 02:51 PM

Donate it to American Farmland Trust. http://www.farmland.org/

Maura · #20 09/21/08, 05:03 PM

I think I would take a chunk of that land and build a nice retirement home or assisted living home. Basicly, a place that the two of us could live in when we can no longer take care of a home and may need assistance. I'd set it up the way new convelescant homes are being done, with a central living area, large kitchen, and several bedroom/sitting rooms. I'd have a lovely front garden with the parking, and flower beds and a vegetable garden in the back with trees and lovely sitting areas. Surrounding that, I'd donate land to a nature conservancy. I'd leave the remaining as a farm with house. It is this acreage I'd put into a trust.