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Post by Oatking on Sept 10, 2020 6:26:53 GMT -6
How many guys have walked away from buying land that you have rented for years and years. I am a little frustrated when the owners die the kids right away hire a real estate company and usually the land gets appraised at the highest level. Where is this all going and at some point is all the stress to carry a mortgage to your in a care home worth it. Is it giving up if you farm smaller acres with no debt instead of lots of acres and 4 million in debt. I am past my prime now and own enough for retirement but its a hard thought to give up land you farmed for 20 some years. Here is the kicker the kids are selling the land 2 weeks after there parents died. Also when I knew the man who owned the land his often expressed his displeasure in his son for selling a quarter he gave him years earlier. Anybody else run into this situation. The amount they are asking doesn't reflect the production of the land , but now a day every body thinks they have river lot land. |
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Post by meskie on Sept 10, 2020 6:57:51 GMT -6
Hasn’t happened to us but I know a couple guys that have that happened to them. It seems worse when it’s the kids who don’t really have much to do with the farm at all
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Post by cptusa on Sept 10, 2020 7:21:58 GMT -6
Has not happened to me yet but I think it will on one parcel, I'll own it when it happens since I look out my front window at it.
Honestly I scratch my head "here" when the net generation inherits the ground and sells it for a quick cash in right away. Land is a solid investment and a constant return for really doing nothing when you inherit it. $275-325/acre is not an out of line rent here with some around $350/acre this last year (not mine). With land bringing $9500-11000/acre on sales that's a 3-5% ROI, and it will always be there. Not the highest ROI in the world but pretty decent and exceptionally low risk.
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Post by carlos on Sept 10, 2020 9:15:53 GMT -6
I can relate. Had a half section that our family had rented in late 70's. My dad broke the grass with a six furrow plow all summer. My grandpa rented it, then when I graduated high school rented it. Was owned by a lady who lived in the city but had a garden still out at the yard. Would always rototill it for her every spring, had a verbal agreement, very good landlord! Her 3 daughters decided to sell when she was in a care home with alzheimers. Of course wanted top dollar. One daughter said we just want fair price for mom. Yeah more like top dollar for us!! I passed on it to buy another half that I was waiting to come up for sale. That is another story!!
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warreng
Full Member
Posts: 119 Likes: 8 
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Post by warreng on Sept 10, 2020 12:29:37 GMT -6
Land is a solid investment and a constant return for really doing nothing when you inherit it. $275-325/acre is not an out of line rent here with some around $350/acre this last year (not mine). With land bringing $9500-11000/acre on sales that's a 3-5% ROI, and it will always be there. lol, land up here is going for that [your yearly rental] as a purchase price ... 60-100k a quarter .. |
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Post by torriem on Sept 10, 2020 20:13:46 GMT -6
When talking about selling land and the future, my dad always refers to the Biblical story of selling one's inheritance for a "mess of pottage."
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Post by SWMan on Sept 10, 2020 23:22:46 GMT -6
Oatking it is pretty common what you describe. I rented a quarter for 20 years and when she gave it to her kid the ink couldn't dry fast enough to sell it. I had broke it and cleaned it all up and then had to pay top dollar to buy it. I can't really blame the seller though, most people would want to get maximum value. It does make one appreciate good landlords who give a break now and then. I think people are more inclined to give a break to a young farmer over an established one too.
My take on land prices is we will see a correction if the easy credit dries up, but I just got an email from FBN and between them and FCC you don't need to pay for chemicals bought now until 2022!!! Who needs actual money to farm anymore....geez.
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bap
Junior Member
Posts: 61
Likes: 28
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Post by bap on Sept 11, 2020 0:18:39 GMT -6
Has happened here a couple times, might bother a guy for a bit but if it doesn't pencil in who cares. Life is too short. A better deal may come along, we have had some good landlords too. Probly work out fine either way...
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tsipp
Junior Member
Spring valley, Saskatchewan
Posts: 95
Likes: 63
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Post by tsipp on Sept 11, 2020 3:38:11 GMT -6
I was building some fence on ducks unlimited land last week, my in-laws sold some land to DU 25 years ago, it was 4 quarters and it sold for 25 thousand a quarter, anyway after seeing all the old stone piles, all picked by hand and broke with horses,I had to wonder why they sold it after all the blood sweat and tears. The family owned it for about 80 years.
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Post by slipclutch on Sept 11, 2020 6:19:09 GMT -6
Because they wanted the CASH. It’s always like this. The parents pass on the kids want the cash! And say see ya suckers.
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Post by kevlar on Sept 11, 2020 7:19:33 GMT -6
We have lost out on a little bit over the years. Just one quarter and a half. The owners approached us to see if we would farm them, we took them on and cleaned up the train wreck of weeds and stones and just when we got them farmable again, they sold them. Didn't really care about the one quarter but was kind of ticked off how the other deal went down. Fortunately, we have some really great landlords right now. One thing I have learned is to never put too much money into improving someone else's land.
Never understand why kids would sell the land, guess they don't see it as a lifelong investment. Have seen land sold basically the day of the parents funeral, thought that was pathetic, for both parties involved.
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Post by Oatking on Sept 11, 2020 7:42:32 GMT -6
From what I have observed over time the richest families now are the ones who have retained their land. A lot of times the children who sell need the cash for retirement as they have not put enough away to sustain themselves. Sometimes it feels like the kids are just waiting for their parents to die so they can say jack pot! that's the way I see it! It must have meant a lot to the parents if they held onto it for their whole life.
The cost of interest and state of economy right now will make cheap money to borrow and a correction in land prices is still a ways away I think. I think land rent will increase more to be on par with escalating land prices and completion.
I was asking my wife the other day can we actually write in our will , that our kids are not allowed to sell the land or not be transferred in case they have divorces in the future. How much protection can you do on your investment after your six feet under. I always think your legacy or wealth can continue even after your dead. Sure you can take the money with you when you die, take it to your next generation.
It is also your responsibility as a parent to teach your kids hard work pays off and teach them the value of being a land owner. Far too many kids now are spoiled and leach off dear old dead dad or mom!
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Post by kevlar on Sept 11, 2020 7:56:43 GMT -6
You can’t keep control of it indefinitely, but you can put limits on on when it can be sold. You can put it in a trust until your kids are a certain age, our kids we said something like 21 and 24 I think, not sure what the limitations are for age, I wanted to make sure that they were old enough and responsible enough to make that decision. Most kids at 18 would cash out without thinking it through.
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Post by cptusa on Sept 11, 2020 9:43:26 GMT -6
I've seen land sell the day of the funeral and pretty sure even at the funeral which you're right is absolutely disgusting for all parties involved.
Not sure I'd want to tie up the land indefinitely so the next generation couldn't sell it. You never know what happens in their lifetimes that they may need to or is their advantage to. I lean more toward education of them that land is a great investment and sound retirement plan. I would include in my will though that any heir wanting to sell has to offer it to remaining heirs at fair value.
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Post by Oatking on Sept 11, 2020 10:47:10 GMT -6
Land sales from the younger generation or kids is going to be a huge issue soon. Many farmers are very well off and there inheritance is worth a kings ransom. I agree education is the better way to go but I will change my will to put some restriction in place.
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