U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Rural and Small Town Living
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-11-2010, 05:40 AM
 
Location: the Great Lakes states
798 posts, read 2,211,811 times
Reputation: 539

Advertisements

Three ideas... I don't know if they would work for you, but here they are:

(1) Rent-to-own agreement for that young family that wants the land. A lawyer or good R.E. agent (who has done these before) should be able to write the contract. These work well for houses, why not a farm?

(2) Make it a tree farm? Friend of mine... his dad (former professor) wanted to retire in the country, bought a piece of farmland, doesn't want to farm (except for his small garden), so he researched tree farming. Not as much work as crop farming (as far as I know), looks pretty, good for the environment, makes some money after some number of years. Shouldn't hurt the value of the land. If someone wants to change it back to crop farming at a later date, they can. Neighbors looked at him like he was crazy when he did it, though.

(3) Donate it to a charity... an environmental group perhaps? I would think that if you donate it the tax burden would be relieved... maybe you would need to put it into a trust and retain partial ownership... I don't know. But there are organizations in Northwest Indiana and in Southwest Michigan (sand dune areas around Lake Michigan) that have received land in trust, and have covenants not to build, not to use chemical pesticides, etc.

Good luck!
Reply With Quote Quick reply to this message

 
Old 12-11-2010, 07:58 AM
 
Location: Forests of Maine
31,146 posts, read 50,314,105 times
Reputation: 19849
In this state we have a large Organic organization that has an apprenticeship - journeyman program. [mofga.org] When the journeymen finish the program then the group tries to help them find farm land.

If you contacted your local Organic group. You could set your land into a 'conservator-ship' thing where it locks the zoning into 'only farming'; and the organic group would keep farmers on it for you [paying you a leasing fee].
Reply With Quote Quick reply to this message
 
Old 12-11-2010, 10:18 AM
 
Location: Los Angeles area
14,017 posts, read 18,066,849 times
Reputation: 32353
It is terribly unfair to the sibling who wants to sell to do anything else but buy him out or divide the land into three equal parcels. (Yes, there could be some arguing about what constitutes equal). The sister who wants to keep it "in case her children want it" is being impossibly romantic and impractical. Suppose her children don't want it? Let this sister keep her one-third of it, then. There's nothing quite like greed and selfishness mixed in with pre-existing sibling resentments to make a very toxic family stew.
Reply With Quote Quick reply to this message
 
Old 12-11-2010, 10:42 AM
 
Location: CasaMo
15,587 posts, read 7,662,437 times
Reputation: 17159
Quote:
Originally Posted by Escort Rider View Post
It is terribly unfair to the sibling who wants to sell to do anything else but buy him out or divide the land into three equal parcels. (Yes, there could be some arguing about what constitutes equal). The sister who wants to keep it "in case her children want it" is being impossibly romantic and impractical. Suppose her children don't want it? Let this sister keep her one-third of it, then. There's nothing quite like greed and selfishness mixed in with pre-existing sibling resentments to make a very toxic family stew.
I agree. Just because the brother's opinion is to sell doesn't automatically make him the bad guy.
Reply With Quote Quick reply to this message
 
Old 12-11-2010, 12:00 PM
 
Location: Pennsylvania
16,786 posts, read 10,700,818 times
Reputation: 29778
I don't think anyone implied he is the bad guy. My opinion, I agree with escort Rider about the sister who wants to keep it for the kids someday. maybe. If not, what?

It's a hard situation when there's one pie and three thumbs.
Reply With Quote Quick reply to this message
 
Old 12-11-2010, 12:07 PM
 
Location: Not on the same page as most
2,503 posts, read 5,627,096 times
Reputation: 1557
Maybe you could buy your brother out with the profit from the lease on the land, minus the taxes over a long term. Not sure if this is economically feasible. This way he would see income, it would cost you nothing, and the land would remain with you and your sister.

Basically, it's the same as taking out a loan to buy out his portion...except there would be no closing costs, interest rates, etc since you already own the land.
33.3% of the value of the land at $2.5 million is: approx. $832,500 divided by 30 years = $27,750 per year. That would be a monthly payment of: $2,312.50 per month. You would have to add taxes to that, but would be able to offset it by the profit from the lease. You could also do sharecropping on the land, which would allow a young farmer to farm, and make a profit, and you could also make some more profit on the land.

Your brother may also not demand full market value, which could also lower your costs. Just some ideas.
Reply With Quote Quick reply to this message
 
Old 12-11-2010, 12:45 PM
 
29,988 posts, read 37,767,031 times
Reputation: 12782
240 acres seem pretty small to be paying a middle-man to manage it for you. Is it so far from where you live that one of you cannot travel to check on the land and collect rent at that time?

Personally, unless someone needs the money now I wouldn't sell. Wait for the economy to come back a bit and the land value will continue to increase. As long as the cash-rent is more than covering the expenses of property tax, fencing, etc... why not keep it?

Perhaps your brother is in a financial situation where he needs money? If that is the case can you and the sister who wants to hang on to the land pool funds and buy out your brother of his share? That would seem to be the least expensive option, IMO. With the currently depressed economy you may well be getting a good buy.

Considering the scenario above: If you cannot make a cash purchase, as women you may be able to get a minority agricultural loan to help fund. Check into it as there are incentives for female farm owners/operators. Run the numbers and find out if continuing to rent will cover your loan payments to an extent that it would not be an undue burden.

Have you checked to see if there is CRP enrollment available in your area? That may or may not pay more than you are currently receiving in rent. After buying out your brother another income stream to consider is to selling a hunting lease. It would depend on the terms of the current tenant's lease and if those rights are part of his/her contract.

Last edited by lifelongMOgal; 12-11-2010 at 01:00 PM..
Reply With Quote Quick reply to this message
 
Old 12-11-2010, 02:32 PM
 
221 posts, read 1,044,226 times
Reputation: 375
Thanks for all of the ideas so far, folks!

There are lots of ideas to consider. Probably partitioning then figuring out some way to buy my brother out will be best. That's scary, since neither my sister's family or I have any spare money.

I like the idea of renting it out directly to a young farm family. But:
Could a farm family actually earn enough income to have a decent life if they're only farming that one 240 acre farm and they are paying us enough rent for us to buy out our brother?

They'd have to also buy or lease their own tractors and etc. since we don't own any such. Plus, there's no house on the farm - they'd have to at least move on a mobile home and connect somehow to the old well/septic.

Those problems above are probably why the management co. now leases to people who farm more than one place so they can farm enough acreage to pay for their equipment/house and still have money to live on.

Hmmmmmmm.

Keep those ideas coming! I'm learning a lot from all of you.
Reply With Quote Quick reply to this message
 
Old 12-11-2010, 11:03 PM
 
4,919 posts, read 20,167,599 times
Reputation: 6227
once agin, before spending time thinking about what you want to do with the farm, think about what your brother can do. If he file for partition sale or forces property sale, the court will divide the land and divy it up regardless of what you want or which piece you would want. Or they can simple order the whole land sold and the money goes equally to all three. If that happens, you have no land to worry about. Most estate land issues in my neck of the woods end up as a buy out or full sale. If you cant buy out your brothers share of value, thet order the full sale and split proceeds. someone else now owns the property.
Reply With Quote Quick reply to this message
 
Old 12-12-2010, 01:15 AM
 
Location: Portlandia "burbs"
10,234 posts, read 14,174,079 times
Reputation: 25899
My husband and I were talking about the family farm that I will inherit down the road. And as the conversation spiraled off into different directions, he mentioned an interesting idea. And that is -

A "community farm" for the homeless. The idea is for people on hard times to share in the farming and have a roof over their heads until they're ready to move (found a job). Probably not as easy as it sounds. You'd have to build a few homes on it and be selective of those you would permit to live on your land. Also, who would overseer the operation? (Actually, probably an organization like the Salvation Army or something. Just a thought.)

A co-worker of mine went solo to Europe for a few months, and she stayed at such a farm in Italy to earn her room 'n' board.

Your sister may have a valid point about her kids, but how old are they? If they're in their teens, or about to be, you should be able to get a good idea of whether "farming" is something they'd want to do. (I may not inherit that farm for several years and already have this dilemma in my mind. Of all the numerous nieces, nephews and great-nieces and nephews that live around there, not a single one of them would have the interest.)

The farm cannot end up derelict, and the zoning laws in that area may not permit subdivisions.

Leasing it to an interested farmer is fine and dandy, but I, personally, would want to live near it enough to "watch" the place.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Rural and Small Town Living
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 12:18 AM.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top