Posted by JDseller on September 24, 2012 at 07:36:18 from (208.126.196.144):
There have been many on here talking about the younger generation of farmers. They are on both sides of the fence, some for them and some against their actions.
Here is my question: How are we going to get the next generation of farmers started??? Here are some of the problems I see.
1) The high cost of the capitol things you need to farm. I mean land, equipment, and inputs. The price of land is making it just about impossible to buy even for current farmers. Cash rents are not much better. I have been hearing some talk by some of the land owners of wanting higher rents next year because of the $8 corn and $17 dollar beans. $350-450 is the common cash rent right now.
2) The transfer of these assets to the next generation. Most of the current land owners need the income and sale price of the land because it is a majority of their retirement money. So how does the current owner get even near the current land value with a younger person getting the land????
3) We are becoming a country of serfs and landholders. The percentage of the land owned by those farming it has steadily dropped in the last 20-30 years. This is not a good long term thing. It makes the long term care and maintenance of the land less likely to happen. If you only have a 2-3 year rental agreement you are not going to treat the land the same as the land you own.
4) I think that the trend of absentee land owners is not a good long term thing. The land to them is just an investment. Their main interest is to maximize the income off that investment. As a pure investment I understand that and support that. As a small community member I see the trouble that this is causing in that community. We have fewer local people with "skin" in the game so to speak. So it is harder to keep doing the things that a community needs to do. Like keep a fire department manned or raise the funds for local services. Also the absentee land is usually not cared for as well as similar land owned by the person farming it. I do many things on my land that will never pay for themselves but it is what the land needs to still be productive in 50-100 years. It is real hard to justify contour strips and buffer dams. They do not pay for themselves in any cash flow you come up with other than long term land improvement. That will not get done by a short term renter. Not knocking the renter they just can't afford to do the practice.
So what do you guys think??? I am stumped on how to just transfer my assets to my own kids. The value is all out of step with the earning potential of the asset.
How do you pay for an asset that is returning 2-3% in profit/income?? Where do I get those numbers?? I would not list my farm right now for any less than 2 million and not expect it to sell. It only makes about $50,000 clear profit each year. Not as much tillable land and a lot of buildings. I don't have near that in the place but that is real close to what the current value is. Truthfully it would need to be bought for half of its current value and even then it would not be easy to pay for it.
I know I posted about my sons just buying some ground. I am not sure that we/they did the correct thing. I still worry that this decision may sink us all.
It really made me laugh when a poster accused me of not being aggressive enough in todays land market, owning/renting. I would like to hear if he is running out an buying/renting some at today's prices.
So lets hear some good ideas on how we can make this work. I know there are some good young people wanting in the game. So how do we make that happen???
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - History of the Nuffield Tractor - by Anthony West. The Nuffield tractor story started in early 1945. The British government still reeling from the effects of the war on the economy, approached the Nuffield organization to see if they would design and build an "ALL NEW" British built wheeled tractor, suitable for both British and world farming.
... [Read Article]
Latest Ad:
Oliver 550 Diesel runs like a watch three point hitch pto engine gone threw about two hundred hours ago nice clean tractor
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
