Random musings

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Michael
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Re: Random musings

Post by Michael »

Agreed, lipp. I use those clips for my poker bankroll. I haven't found a clip that works better.

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IMADreamer
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Re: Random musings

Post by IMADreamer »

We had a landlord die last year, and the kids have decided to sell the land. You know why have a steady stream of income the rest of your life when you can sell it all in one chunk and blow it? Anyway, little bitter because my family has farmed this land for three generations and now we won't unless I can come up with about 8 million bucks by February.

tlombard
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Re: Random musings

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IMADreamer wrote:We had a landlord die last year, and the kids have decided to sell the land. You know why have a steady stream of income the rest of your life when you can sell it all in one chunk and blow it? Anyway, little bitter because my family has farmed this land for three generations and now we won't unless I can come up with about 8 million bucks by February.
Kids are the worst. In this case it's even more maddening because that would be steady income where they don't even have to do anything unlike keep up an apartment building or something.

On the other hand, how long would it take for them to make $8M from leasing the land and how old are the children? Maybe there are estate taxes involved and they need the cash to pay those? I can see that if almost the entire value of the estate is tied up in land and they're hit by estate taxes, they might not have much choice.

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stlouie_lipp
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Re: Random musings

Post by stlouie_lipp »

IMADreamer wrote:We had a landlord die last year, and the kids have decided to sell the land. You know why have a steady stream of income the rest of your life when you can sell it all in one chunk and blow it? Anyway, little bitter because my family has farmed this land for three generations and now we won't unless I can come up with about 8 million bucks by February.
Hopefully an investor buys it and you can continue to farm it. Isn't it too late to terminate your lease for the 2018 crop year?

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Re: Random musings

Post by Diddy »

I was at a young farmers conference last week and succession was one of the topics. Had a very good lawyer that led the conversation. Even I was amazed at the amount of things that can go wrong with succession planning. Depending on how it is setup the heirs may not have much choice if even one wants their cash now.

Is 8 million the down payment or total cost?

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Tim
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Re: Random musings

Post by Tim »

IMADreamer wrote:We had a landlord die last year, and the kids have decided to sell the land. You know why have a steady stream of income the rest of your life when you can sell it all in one chunk and blow it? Anyway, little bitter because my family has farmed this land for three generations and now we won't unless I can come up with about 8 million bucks by February.
Wait.
I thought I read if you won the lotto you were supposed to take the lump sum and not the scheduled payouts.
I recognize this isn't apples to apples, but I thought you take the money up front.

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IMADreamer
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Re: Random musings

Post by IMADreamer »

Diddy wrote:I was at a young farmers conference last week and succession was one of the topics. Had a very good lawyer that led the conversation. Even I was amazed at the amount of things that can go wrong with succession planning. Depending on how it is setup the heirs may not have much choice if even one wants their cash now.

Is 8 million the down payment or total cost?

8 million is the whole cost. I've been trying to make the math work on it but with corn under $3 it just doesn't work to buy it.
stlouie_lipp wrote:
IMADreamer wrote:We had a landlord die last year, and the kids have decided to sell the land. You know why have a steady stream of income the rest of your life when you can sell it all in one chunk and blow it? Anyway, little bitter because my family has farmed this land for three generations and now we won't unless I can come up with about 8 million bucks by February.
Hopefully an investor buys it and you can continue to farm it. Isn't it too late to terminate your lease for the 2018 crop year?
I think there are four kids. Our lease on the land is about 100k a year so admittedly it would take the rest of their lives.

We do still have the lease for 2018. Which is good because we already have the seed and chemical purchased for it.


This at least temporarily means I'm going to need to find more off the farm income for the foreseeable future because our operation will not support four families with 400 less acres.

tlombard
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Re: Random musings

Post by tlombard »

IMADreamer wrote:
Diddy wrote:I was at a young farmers conference last week and succession was one of the topics. Had a very good lawyer that led the conversation. Even I was amazed at the amount of things that can go wrong with succession planning. Depending on how it is setup the heirs may not have much choice if even one wants their cash now.

Is 8 million the down payment or total cost?

8 million is the whole cost. I've been trying to make the math work on it but with corn under $3 it just doesn't work to buy it.
stlouie_lipp wrote:
IMADreamer wrote:We had a landlord die last year, and the kids have decided to sell the land. You know why have a steady stream of income the rest of your life when you can sell it all in one chunk and blow it? Anyway, little bitter because my family has farmed this land for three generations and now we won't unless I can come up with about 8 million bucks by February.
Hopefully an investor buys it and you can continue to farm it. Isn't it too late to terminate your lease for the 2018 crop year?
I think there are four kids. Our lease on the land is about 100k a year so admittedly it would take the rest of their lives.

We do still have the lease for 2018. Which is good because we already have the seed and chemical purchased for it.


This at least temporarily means I'm going to need to find more off the farm income for the foreseeable future because our operation will not support four families with 400 less acres.
No matter what happens or why it is happening, the entire situation sucks. Sure, the kids may be getting a payout but they also lost their father. Your family is being put in a bad spot. Stinks all around.

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IMADreamer
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Re: Random musings

Post by IMADreamer »

tlombard wrote:
IMADreamer wrote:
Diddy wrote:I was at a young farmers conference last week and succession was one of the topics. Had a very good lawyer that led the conversation. Even I was amazed at the amount of things that can go wrong with succession planning. Depending on how it is setup the heirs may not have much choice if even one wants their cash now.

Is 8 million the down payment or total cost?

8 million is the whole cost. I've been trying to make the math work on it but with corn under $3 it just doesn't work to buy it.
stlouie_lipp wrote:
IMADreamer wrote:We had a landlord die last year, and the kids have decided to sell the land. You know why have a steady stream of income the rest of your life when you can sell it all in one chunk and blow it? Anyway, little bitter because my family has farmed this land for three generations and now we won't unless I can come up with about 8 million bucks by February.
Hopefully an investor buys it and you can continue to farm it. Isn't it too late to terminate your lease for the 2018 crop year?
I think there are four kids. Our lease on the land is about 100k a year so admittedly it would take the rest of their lives.

We do still have the lease for 2018. Which is good because we already have the seed and chemical purchased for it.


This at least temporarily means I'm going to need to find more off the farm income for the foreseeable future because our operation will not support four families with 400 less acres.
No matter what happens or why it is happening, the entire situation sucks. Sure, the kids may be getting a payout but they also lost their father. Your family is being put in a bad spot. Stinks all around.
It does and I don't know the kids situation for sure, but I know the two of them I've dealt with are [expletive]. I think they are all pretty wealthy to begin with as their parents basically handed businesses over to them to run.

It's none of my business though and it doesn't matter. Just have to prepare for what is happening next. We have always known it was possible when the land passed on to the next generation. I had just hoped for a little more time to build up some more wealth and be ready to buy when it happened. I've already added some of my own land to our operation this year, and I may have to spend this next year trying to find more to lease. Land competition is pretty fierce here though. Dad did get a call from another land lord inquiring about that land. I'm not sure he wants to take it all on but there could be an opportunity for a partnership there. He is a great landlord and only in his 40s (he inherited his land too). He loves the idea of just owning farm ground and I see no sign of our deal with him letting up so it could be a situation where I could buy some of the ground and maybe he buy the rest and we could keep farming. Not sure yet. It's all developing fast.

Diddy
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Re: Random musings

Post by Diddy »

IMADreamer wrote:
Diddy wrote:I was at a young farmers conference last week and succession was one of the topics. Had a very good lawyer that led the conversation. Even I was amazed at the amount of things that can go wrong with succession planning. Depending on how it is setup the heirs may not have much choice if even one wants their cash now.

Is 8 million the down payment or total cost?

8 million is the whole cost. I've been trying to make the math work on it but with corn under $3 it just doesn't work to buy it.
stlouie_lipp wrote:
IMADreamer wrote:We had a landlord die last year, and the kids have decided to sell the land. You know why have a steady stream of income the rest of your life when you can sell it all in one chunk and blow it? Anyway, little bitter because my family has farmed this land for three generations and now we won't unless I can come up with about 8 million bucks by February.
Hopefully an investor buys it and you can continue to farm it. Isn't it too late to terminate your lease for the 2018 crop year?
I think there are four kids. Our lease on the land is about 100k a year so admittedly it would take the rest of their lives.

We do still have the lease for 2018. Which is good because we already have the seed and chemical purchased for it.


This at least temporarily means I'm going to need to find more off the farm income for the foreseeable future because our operation will not support four families with 400 less acres.
You can’t justify buying land right now, no way to make it pencil out. Have to look at it as an investment if you want to do it.

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