6th Generation Farm - 3/27/2025 21:55

It's a good idea to pass it to the next generation and receive the stepped up basis. But to think the next generation always wants to be landlords and just rent it out is almost a fallacy. (And I can see where their coming from)

I can think of many older generation people that held it to give to their kids so the kids can rent it out. But the kids just ended up selling it anyway. Happening all the time. Say the 3 kids inherited 240 acres.(none of these kids farm, and all have children of their own) say rent is 300 so each child receives 24,000 dollars a year) not a huge check but a decent dividend Or they can turn around and sell the farm for 15,000+ an acre. So 1.2 million per child.
And say the 3 "kids" are in their 60s. Those children will never see the full true cash value of that farm from just the cash rent in their life times. In 30 years they won't receive the cash value. Or they can just sell and collect a check. I can see where their coming from.

Personally I won't be sell a thing because you don't sell the land your grandfather's grandfather walked on. But in the next 20 years there will be lots of land for sale. And in 100 years I'm sure there won't be a tract of land around here that has the same last name on it as it does today.