EC Nebraska | Big Ben - 10/26/2018 22:40
All is well and good until the combine or the established equity farmer is used up. Nothing lasts forever, and then someone has to face the reality of what actually worked vs what someone liked to think worked.
Big Ben - 10/27/2018 20:17
FWIW I never said those guys are burning equity, and agree they will likely be fine as long as they live.
However, when they do kick the bucket and the next generation can’t farm and has to sell it because none of them can make it work, some of them may be left wishing a little more attention had been paid to that accountant.
So, you meant that things are well and good until the established equity farmers are dying off? But that could be 10-20 years yet. Economic conditions will have changed one way or another by then. If grain prices don't move higher, then land prices will reset lower. The whole point of building equity in the good times is to be able to survive the reset.
Regardless, if there is more than one non-farming heir then, yes, it is likely that much of the farmland will be sold off to settle the estate. The farming heirs get some portion of dad's ground, and the rest is sold off. That sounds pretty normal around here. It sucks, but each generation can't keep re-buying most of the land. If there is only one non-farming heir, then probably most of the ground will stay in the family and only a small portion needs to be sold off to settle the estate. Of course, there is the rare case where the non-farming heirs like the idea of a small steady income and just rent the ground to the farming heirs. It does happen sometimes.
I'm not sure, what do you think the established equity farmers should do in times like these? Rent out the land and get a town job? What's the point? And how would it help the next generation?
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The Big Reset underway..?? Corn to $2.. Beans to $6. When does it hit input prices?
