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SESD | Im looking for ideas on how to transfer ownership from one generation to the next.
Here's how we are set up right now. Dad and I have farmed similar acres for a few years and this year I will have more. We would like to upsize/upgrade combine. Dad owns the machine, but feels like I should own it since Ill have more acres and he may be looking to slow down in half a dozen years or so. I also have a brother with a full time job that has some ground and would like to farm full time in five years or so.
Im trying to think of a fair way to switch ownership without actually exchanging money. Right now I pay per acre for his machine and he would pay if I owned it, but how do we make that transition while him getting the value of his machine over time and me not having to take a huge bite for the short term.
Thanks
edit: My rough idea is to have me pay the upgrade and he would take yearly equity out of his for rent. I would treat it like its mine in repairs and such. I can't figure a fair way to work that though because technically most the machine is still his and rent wouldn't be much on % base.
Edited by JRthefarmer 2/25/2014 15:11
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Father/son and equipment transfer
