rant/rave the family business

[IMADreamer]

Rave: I love working with my Dad and Uncle, it's hard work but we are always joking around and the day goes by very fast. Making the transition from being season help to full time help has been awesome.

Rant: The way my Grandfather set things up when he died all of the land he owned went into a trust and now EVERYONE gets a piece of the action. My Grandparents had a lot of kids and all of them but three left the farm. So why do they get money from the farm? We are doing some serious transitional planning right now trying to figure out what happens next so to speak. My Grandpa is gone, my oldest Uncle will be retiring this winter, and my Dad and youngest Uncle will be still farming. My youngest Uncle has no children and I'm an only child. The oldest Uncle wants his share of equipment bought out and he's going to rent the land out to my Dad, Uncle, and myself. No problem there.

However back to my Grandpa's land. Most of my family is fine, they just want us to keep farming it and of course their rent money for doing nothing. However I have two family members who have read it in a magazine somewhere that land prices are high and cash rent prices are high and basically they are trying to stick it to us. However if my Dad and Uncle do not want to farm it the land has to be put up for sale and the sale price split between the family. So we are thinking about forcing a sale and then I would buy it back. It's risky because land prices are absurd and I think it has to go to auction if we sell it.

It blows that I have to buy land that has been in my family for five generations. It blows even worse that my cousins, and some of my aunts and uncles get paid by the farm even though they have never done an ounce of work on it.

So in short: Some of my family rocks, some of it sucks ass. My Grandfather should have been kicked right square in the ass for setting his estate up this way because people who wanted nothing to do with the farm should get no profit from the farm.

[Freed Roger]

I just glanced at this without fully reading it all & have an idea of what it's about.

Common problem with successful family business. Succession planning. Here's my card. Just kidding - something I have no interest in doing. I was at a seminar where the session that drew the most interest was given by a family psych. He basically would host family summits -where they would try get the family on the same page, and to not kill the goose that laid the golden egg. lawyers and accts around to find a way to formalize some agreement.

My wife's grandpa and uncle have the same issue - all the money is in the land. So how do non-farming family members get their share of the estate without busting up the ongoing family farm? What if sister A (or her husband) law want a fourth of the land to build a McMansion? What if long-lost sister wants just cash. How does Uncle carry on the farm in a viable manner when it's resources are diminished?

These situations can get ugly fast. Even though everybody is nice and decent people - when you get spouses and multiple generations involved - whoa. Lawyers and life insurance salesperson may be able to help, but not without taking a large cut.

[Molly]

I have no answer to this problem. But it sounds exactly like the scenario from "The Descendants."

[Fat_Bulldog]

Sounds like you might want to contact Leroy regarding the non compliant relatives.

[melodystewart]

Best of luck with your family business.

[lukethedrifter]

Thanks, melody.

[Diddy]

Most of the land around here is still share cropped. Any chance you could change the rental agreement to share cropping? It would give them an opportunity form increased returns. I really fell that its the most fair arrangement.

Land prices are out of wack. I think they will straighten out somewhat as the stock market rebounds. There is alot of money in farming right now that is coming from investors. Weighed it be in the commodities market or in land. I don't know how much its pushed the commodities markets up, if at all, but they don't act like they traditionally have. Low interest rates are also inflating land values. Some of the prices of land that I hear are rediculous there is no way to make it pay farming it but speculation is it'll go higher.

From my experiences with family members everyone wants the land to stay in the family, but they want every damn penny out of it they can get. But they really really want it to stay in the family. I'm alittle bitter there. When I was 18 I inherited the original 420 acres that my great grandpa originally bought when he moved here just prior to the depression. That's another sad story but anyhow. My great aunt left it to me, everyone thought that was great till they realized they didn't get [expletive], so they contested the will in court. They were all much closer relation even though they live 1000's of miles away and had dent talked to her in years. Well they came up with an issue and got the will thrown out. They still wanted me to buy it and keep it in the family but would do nothing to work with me. They thought it was sad that I couldn't pay more for it for anyone else and were sad it left the family but didn't mind laughing all the way to the bank.