1031 Exchanges

NY 986

Well-known Member
Another piece of property near me is gone because somebody parachuted in with big bucks. I understand the 1031 has helped some people from being cleaned out by the Feds when they sell out in their old location. However it is killing me in terms of ever hoping to grow to a size where I know I could be secure when I'm older. It's bad enough that any rental ground available is poor in quality and the vast majority of ground farmed locally is owned by the farmer running it but I am once again getting pessimistic about the future. Off farm job prospects keep getting worse around here and now a sizable regional grocer is going out of business.
I don't mind the idea of having to buy what I farm but by the time I could do so the elite farmers here will have everything nailed down. Getting to the point where there is no room for the little guy anymore.
I understand life is not fair and there are people with worse problems than I have. I just needed a place to vent my frustration.
 
As one who has used the 1031 I have to say if you are going to farm it you will never be able to pay for ground. The prices are just to high. Your lucky to be able to farm the interest out of it if you have to buy and borrow. I was fortunate enough to buy ground years ago for a cheap price and have it go up beyond my dreams. I used to farm but really don't anymore. You need to find someone who will rent you the ground for a reasonable cost. My goal is to rent my ground to a young farmer new in business that needs a leg up. The problem is I have to much ground for just one young farmer to be able to finance his input. Just hang on and keep trying and visit with people. You will find someone who will be able to see what you are trying to do and hopefully help you out.
 
Sadly, there will be no benefactors to come to my rescue as far as renting me ground. Everyone that owns ground here wants to work it and when they are done have said they are going to sell. Nobody is interested in any long term land contracts at this time. This would be easier to swallow if things were not so tough currently. I've got nothing going off farm and the local economy is real rough here. I realize people have to reinvent themselves all the time anymore. I'm 46 and normally I would never think of myself as being too old for anything. However, most employers seem to have an extreme youth obsession anymore. As you say all I can do is to try and hang as positive as possible.
 

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