|
Madison Co. Virginia | I hear this same sort of question in relation to small dairy farms, and my advice is that the ownership of the dairy herd and its directly-associated equipment needs to be by a single individual. If that individual decides it's time to hang up the milkers, he needs the privilege of doing so without convincing anyone else.
The way that would look on a 150-cow owner/operator dairy, is that the son would purchase the herd, the heifers, the feed inventory, and any milking equipment of any value outright, even if it's by way of a loan from dad. He would continue to rent the farmland and buildings in something resembling a conventional lease.
I'd suggest something similar in your situation. Treat the farming enterprise and the land ownership as separate. Purchase the equipment and existing inventory from dad, rent the farm from dad, and pay him and your brother to help out on occasion.
This doesn't apply if there's actual value in the business. But with no employees, and with only producing commodity crops, the business isn't worth anything more than the sum of its components. | |
|
Young Farmer
