SE IA | cbellfarms - 12/5/2012 06:14
I have been farming 100ac and working a great full-time job now for the past 5 years since graduating from college. With high crop prices, I have essentially became "debt free" with farm expenses. I have the opportunity this spring to partner 50/50 with my Dad on his portion of the family farm. He had a bout with cancer in 2011 and his mind and body is just not into the farm like he used to be. My share would be 500 ac (including the original 100ac). I would be leaving my full time job this spring, therefore I would not have any income till fall harvest. We havent quite hammered out all the details on the transition but this is the situation in a nutshell.
I'm going to talk to our FBFM and FCS guys as well, but I thought I would ask your opinions. Do you think it would be better to save my cash for living expenses and borrow for farm inputs? Or, burn the cash prepaying and borrow for living expenses?
I don't quite fully understand your situation and I don't need to. But if your Dad is stepping down his acres some would it be possible in anyway that he could finance you? Or maybe this isn't a NAT approved decision. If you have to borrow money to get financed it will cost something probably 4-6% give or take, I doubt your Dad has anywhere to earn that kind of interest on his money, and maybe it wouldn't be benefical to him for tax reasons....IDK, just an idea.
I would rather borrow for farm inputs rather than living expenses. |
Farm transition question
