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  #21  
Old 11/01/05, 10:01 PM
 
Join Date: Jun 2005
Location: Minnesota
Posts: 474
uh, agman, some of us want to be farmers, not real estate investors.
But, I agree that farmers need to look outside of conventional farming practices to maximize profits whenever possible. We raise organic hay and small grains, rabbits, and chickens, and we keep bees. We direct market just about everything we raise, and we are really getting into bartering with the remaining products. Even so, with what we have to pay for land here, I don't think we will ever make a complete living from our farm- fortunately, I did invest in some real estate before I became a farmer, and that income is what will bridge the gap for us.
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  #22  
Old 11/01/05, 10:21 PM
Murphy was an optimist ;)
 
Join Date: Oct 2005
Location: Kentucky
Posts: 21,562
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whooaahhh there hosses! I have just read your rather lengthy post in reply to mine and want to apologize for any word I may have typed that was offensive in any way. I am merely puzzled at the thoughts you entertain based upon your experiences as apposed to my own experiences. I meant no offense in any way shape or form, and with luck hope to have a continueing relationship and exchange of ideas. If I were the easily offended type, I may have even taken issue with your last comment about "us libs....blah woof" but reserve that for someday later. Philosophically, politically and otherwise I have been told I stand somewhere to the far right of Attilla the Hun! I dont care much for whiners, dont believe anyone in this world is "due" anything, other than those Godgivin rights of which some were outlined in our US constitution. The right to persue happiness, (there are no guarantees mentioned), the right to life, and to be free to make our own decisions, which includes the right to fail as well as succeed! We are all individuals with freedom of choice, choices come with responsibility for them, this is my bottom line thinking on most any topic, it has worked well for me over a good many years, see no reason to change it so far, however I am always open to anything that makes more sense. So much for that, I do hope you understand that I wasnt trying to insult anyone. This being said, lets go back to your post to me about my forefathers.

From your post-
"Your elders had $.26 cent fuel. I just paid $2.40 a gallon. Your elders could by a new 4020 tractor for $9000. A new 100 hp tractor is $28,000 or more these days."

Me again-
my grandfather owned one tractor in his life which he purchased used, it was a John Deere "A"model, which he bought from a dealer on a promotional "giveaway deal" with no money down and a years interest free deal. he used that tractor for one crop and sent it back! total cost $0.00 for a years use on a fine tractor. Many times over he used his head and kept overhead low, he was able to make deals with others for the use of their equipment to farm his farm in exchange for a portion of the crop. He began his farming career in 1934, the very best of economic times the US has ever witnessed!

here is where I want to note that we may have a different opinion of how things really are in the world around us. While during the later years of my forefathers lives they may have experienced some better times they had become accustomed to doing things on a much smaller scale, working the farm the hard way, and doing without most of their lives. The one thing they both reinforced in me during the 60s was that the MODERN way was a pathway to ruin, the farm scene was already going to the "need more land to pay for bigger tractors to farm more land to buy bigger equipment ad nauseum viscious cylcle" route. I considered their judgement as valid and see no real reason to dispute it now, things are unfolding pretty much as they predicted, land shortages, (there are a limited number of acres in the US, or the world for that matter) inflated prices, (due to the population increasing constantly increasing the demand) forcing that particular system out of the game. all during the 60s 70s and 80s this modern farm "growth" system worked, but sure as shootin, we are seeing the end of that realm. Just in my own opinion and that of my (whom I consider fairly wise) grandpappys philosophys predicted, its failing, and my friend, it has nothing to do with the overall tax relief of the 1031 for folks to avoid a bit of capitol gains tax. It has everything to do with economics in general, Prices are controlled by supply and demand, the world changes continuously, and any price of any commodity is set by what one feller is willing to pay and the next feller is willing to take. It makes NO difference if there is a profit made, or if a loss is taken! When enough people refuse to pay more than 26 cents a gallon for fuel, the price will drop to that exact amount as long as there is a profit to be made selling for that price. As long as people will pull up to a pump and pay 3 bucks a gallon they will be charged 3 bucks a gallon. If I offer you 30 bucks a bushel for all the corn you can raise next year on your 800 acres, would you turn me down? I am quite familiar with economics my friend, YOU WILL GRAB the money and run! Again I am not trying to insult you or your mindset. but honestly, look out in the world a bit at what others do, learn from them, there are vast numbers of people earning a good living today on 20 and 30 acres of tillable ground, they just use different methods. a good example, go to www.hillandhollowfarm.com and look at what this young couple has done with less than 5 acres of tillable ground. they are living, raising a family, taking care of themselves and others by using alternate methods of land use and production as well as new version marketing strategies. I can personally vouch for numourous other families in this area who are making it, doing well on a handfull of acres 15 to 20 even, IMHO the true "small family farm" of 30 to 100 acres will be back! Again not trying to insult, just trying to expose alternatives to old mindsets. My experiences are obviously different than yours. dont mean either of us is right or wrong. just different ways of looking at things. I do think however we are getting a bit off topic, I will be happy to post a new thread if ya wish to continue this train of thought. hope to become better acquainted and do value your input in here, and will try my best to be better at expressing my thoughts and opinions without being unintentionally rude or offensive. Thats the last thing I want to do.
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Last edited by Yvonne's hubby; 11/02/05 at 07:45 AM. Reason: oops! forgot to put in all of the link to the site, sorry bout that.
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  #23  
Old 11/02/05, 12:07 AM
 
Join Date: Jul 2003
Location: Louisiana
Posts: 281
[ go to www.hillandhollow.com and look at what this young couple has done with less than 5 acres of tillable ground.

Yvonne's hubby,

Tried your link, it didn't work. I would like to check out the site, could you check the spelling? Or has the site been removed?

Very interesting thread. Drifted off topic a little, but still very interesting.

MikeL
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  #24  
Old 11/02/05, 07:57 AM
Murphy was an optimist ;)
 
Join Date: Oct 2005
Location: Kentucky
Posts: 21,562
Quote:
Originally Posted by Michael Leferink
[ go to www.hillandhollow.com and look at what this young couple has done with less than 5 acres of tillable ground.

Yvonne's hubby,

Tried your link, it didn't work. I would like to check out the site, could you check the spelling? Or has the site been removed?

Very interesting thread. Drifted off topic a little, but still very interesting.

MikeL
Thanks for pointing out my typo! I have it fixed now.
heres the corrected version , its a bit more complete, www.hillandhollowfarm.com sorry about getting off topic, I realized that too, I spose I shoulda started a new one.
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  #25  
Old 11/02/05, 08:09 AM
Oregonsparkie's Avatar  
Join Date: Sep 2003
Location: Hermiston,Oregon
Posts: 386
I just sold my first home I ever bought. It was being used as a rental. I asked these questions of my CPA. I was told that the capital gain is deferred if this was my first home sale and I lived in the home during the last year.

Since it was a rental I dont qualify for the deferred capital gains. If your property is bare land I would bet it wont qualify either but make sure you talk to a good CPA.
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  #26  
Old 11/02/05, 08:21 AM
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Join Date: Jul 2003
Location: Georgia
Posts: 873
Quote:
Originally Posted by Cygnet
Yeah, I know, I'll talk to the experts before I make any decisions.

But I HAVE talked to some local experts on what land is actually selling for in my area. I paid 23k for 2.4 acres five years ago. It's now going for around 95K an acre. And it's selling hot. Hot enough that I've had realtors calling me and leaving messages on my voice mail & sending me letters on a weekly basis trying to get me to do just this.

This means I can sell one acre, keep 1.4 for myself (yes, verified the zoning allows the split already), and pay off some bills.

The question I have (and I don't trust the realtors!) is, if I sell half my LAND, do I get the $250K exemption on selling property for taxes, or do I have to pay capital gains?

If I have to pay capital gains, I can still pay off my mortgage. If I DON'T have to pay taxes, I can pay off my mortgage AND my truck and be essentially out of debt. Yippee.

THen start plowing the money I'd been putting on the mortgage & car into savings and save up enough for a REAL homestead somewhere.

Leva
You have to pay the capital gains tax on it. The only way you can take advantage of the 250k exemption is if you sell your primary residence.
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  #27  
Old 11/02/05, 12:16 PM
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Join Date: Nov 2002
Location: NC
Posts: 806
Two weeks later they called and said that they would accept an amount which was slightly higher than our previous offer, but which was an amount our realtor stupidly told their realtor that we had considered our top ofeer if we made another offer. We hadn't, but we really wanted this particular farm, so we went for it.

In our experience we've found that Realtors like lawyers...Run in packs. They have a "good ole boy network" So I doubt it was "stupidly" passed on just another "Can we close this deal and get paid" call. One fraternity brother/sister to another.


Kenneth in NC
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