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| Working for 'sweat equity' is a fools errand. If you are working and expect to be compensated for it, you should be compensated when the work is performed. If you aren't, eventually either you will find you have been taken advantage of, but your siblings will benefit the sweat you put in. On the other hand, if you get a bigger piece of the pie to make up for your effects, your sibling might be losing of of their 'fair share'. Or worse, you might feel like you aren't getting your fair share, and they might feel like they aren't getting their fair share. Would you work extra hours for your employer with the promise that in a few year you will get a promotion and then get 'overpaid' then to make up for your sacrifices now? Doing it with family doesn't make that plan more likely to succeed, but it is more likely that you'll have conflict with the people you love.
I helped my Dad and uncle farm. They owned the equipment 50/50, but Dad picked up more ground, my uncle did not, so dad paid my uncle equipment rent since the equipment wasn't being used 50/50. I had the time and enjoyed doing it, so I helped for fun. I did not get paid, nor did I expect to be compensated. Eventually, my Dad thought that I should be compensated for my work, so he rented 20 acres to me (crop share). I paid him and my uncle rent for the equipment. I bought some ground myself, so Dad quit renting his ground. As Dad aged, he wanted to quit doing some of the jobs that he was doing, and I did more. Dad then rented about a third of his ground to me. This left him with about 1/2 of the acres, me about 1/4 of the acres, and my uncle 1/4 of the acres. I bought out half of my uncles half of the equipment, so equipment ownership was close to the acres farmed.
When my Dad got to the point that he wasn't able to some of the jobs and wanted me to take them over. I couldn't get enough time off of work, or get the time off when I'd need. I told my Dad that I was going to have to quit farming or quit my job. But to quit my job I needed to farm full time. Dad, my uncle and the people (other aunts and uncles) they rented ground from agreed to rent all of the ground to me. Dad and my uncle continued to rent their portion of the equipment to me, but every year I would buy a portion from them at what we thought was fair prices.
I don't expect to have any issues with my siblings when inheritance time comes. I haven't been given the farming equipment, I've paid for it. I'm not getting a special deal on rent. If the other landlords pass on their land, It would be nice if their kids continue to let me farm the ground, but I know that is not guaranteed. I expect that my siblings would allow me to farm their portion of the inheritance, but I don't have that guaranteed.
To summarize, make a plan to be appropriately compensated now, along with a plan to transition. That could be you getting paid fairly for your work. It could also be you taking over a portion of the ground and yielding the income (or losses) from farming. If you can't pencil out becoming a farmer without the farm being given to you, it is the wrong business for you to be in.
You a a fool to try to start farming if you don't think it is going to be profitable. You also contradict yourself. first you say that there is income to expand the operation, then you say that is won't be very profitable. Being profitable does not mean you have money to burn. If you plan to take the income to expand, pay for equipment, or pay back loans, it is still profit. There is always a balance between, buying equipment that will increase your yields, be more reliable, increase your comfort or spending it on personal things, l things like eating out, taking the family on a vacation, getting a nicer vehicle, or saving/paying for kids to go to college.
It sounds like you and your parents are still young and they don't plant to retire soon. You need to figure out a way that helps out all of you. It could be taking over part of what they have, or it could be changing equipment and taking on more ground. But whatever it is, it shouldn't be with the idea that down the road, everything will get balance out to make thing fair to you and or your siblings. | |
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Young Farmer
