Operating Lines

[freewheat]

ajl,



How do you inherit land if someone didn't buy it before you...

Here Here.

[freewheat]

Give the young guys some credit ! They have to jump thru a lot hoops to make it too ! If their buying land and machinery obviously they didn't inherit it !

Well, around me, the kids are using dad's and grandpas paid for land to borrow against to buy more. Not that hard to do, no hoops to jump, just win the gene pool lotto. Same with machinery, although I do know of many young guys whose dad's do the buying, the young guys do the driving. I fell out of my chair when I found out a neighbors dad in his 70's, bought the air drill for junior. I thought maybe giving jr. some responsibility would be a nice touch, but no. Guess what kind of guy jr. is? Arrogant as can be. Thinks he made it on his own. But funny thing, every single recently purchased piece of land with his name on it, also has mother and dear dad's name on it too.

Not always, but often. I have said it before, and have been attacked as jealous, (like WTH?), but the biggest difference between wealthy farmers today, and the ones who truly have had to fight it out, is luck. Weather luck, (not so much in our area!), genetic luck, and wifeisadoctorornursepracticioner luck.

And I have said this before. I do not begrudge them. I just wish some would actually admit it, rather than swear "they did it all on their own". One neighbor who is farming at least 10 quarters of land that was his grandpas back when RM maps looked like faded newsprint with handwritten notations on them, swears he did it all on his own. But then his wife says stuff like the Shop is mine, and the quad track AND combine are mine! lol. So he inherits 10 excellent quarters, uses them to buy 6 or 8 more, his wife buys his machinery and shop, and he swears he is all that and more. It would settle better with me if he simply admitted he won the genetic lottery among other things. Pride I suppose?

Some guys deserve a lot of credit, Klause being one of those types. But there are not many around here at least, who made it on their own in the last 10 or 15 years. They are riding shirt-tails HARD around these parts. And I am good with that. I am positive had my dad been alive when I started farming, he would have helped me along. In fact, the year he was diagnosed with cancer, he was looking to buy some nearby land. Two ears later, two beautiful quarters came up for sale for 350 bucks an acre adjacent to our land when I was 15, but my dad had died. I am positive he would have bought them. I was just getting to be the age I was a big help to him, and he had been sitting back while I grew up a bit more. Back when it was 30 000 a dang quarter, for high assessed land! lol Had I been 6 or 8 years older, my sisters' age, who knows? Dang it all.

Dang it all. lol

[freewheat]

So in the absence of paid for land, what do you guys back your LOC with?

[freewheat]

Free ! From the sounds of it looks like your farming family land ! Give your head a shake no wife is going to buy hubby a quadtrack ! Change your mindset 30,000/ quarter is 1950's prices. If you want land you got step up and buy some !

# no more excuses !

I had to buy my family land from my ma when dad died, unfortunately. When your wife is making 170 000 a year, birthday presents are quad tracks and combines! My dad bought a wide open quarter in 1957 for 3 000 bucks, and another in 1955 for 2 500 bucks. In the late 80's, land was 30 to 40 grand here. No, I do not think it should still be that, but it is getting out of hand. And remember, for me to buy land now, I would have to off a neighbor. There is none left for the taking.... Yet!

I don't want more land. It has to pay its way on my farm.

#theydon'tmakeitanymorebuyitallnow!

[farmaholic]

Hobby, an interesting statistic: over 75% percent of all Dodge Ram trucks sold in the last 15 years are still on the road today....the other 25% made it home.

[ajl]

In the post great inflation world the guys that inherited land can beat you every time as the margin from that land subsidies new land purchased lately. No one is going to tell you the 500000 quarter is not accretive meaning you are farming more land but earning less. Most will not even be able to figure it out. In the olden days interest rates rose as well as fell which leveled the playing field between cash savings and inherited land. Today there is no contest.

[farmaholic]

Around here land is definitely trading at a value that wouldn't pay for itself. As you said it is subsidized by paid-for land. How good of an investment is it if that is the case? I guess if you know the kids will farm it for a lifetime.... or is it a place to park money (if you shoild be that lucky to have that kind of cash laying around).

How far much of a down payment would you have to make on a $320K quarter before it would carry itself with average 4 year crop rotation, yields and prices. Ah...maybe don't figure it out.

Earlier someone mentioned a return to an 80's style reality check, something tells me we are teetering. I would have a tough time justifying the current prices. There is a section beside the southeastern edge of our block for sale, no takers yet. And not the worst dirt in the world...average-ish.

[freewheat]

She could of sold out to someone else for a few more thousand and forgot about you like so many other farms who have sold out to investors or hutts then only a few years later figure it out that what they sold for was peanuts !

Very true, she could have sold to someone else for the same price I had to cough up. I am grateful she gave me the first chance.

#gladtopayforfamilyland.com!

[freewheat]

Around here land is definitely trading at a value that wouldn't pay for itself. As you said it is subsidized by paid-for land. How good of an investment is it if that is the case? I guess if you know the kids will farm it for a lifetime.... or is it a place to park money (if you shoild be that lucky to have that kind of cash laying around).

How far much of a down payment would you have to make on a $320K quarter before it would carry itself with average 4 year crop rotation, yields and prices. Ah...maybe don't figure it out.

Earlier someone mentioned a return to an 80's style reality check, something tells me we are teetering. I would have a tough time justifying the current prices. There is a section beside the southeastern edge of our block for sale, no takers yet. And not the worst dirt in the world...average-ish.

A couple years ago, I was laughed at for saying the exact same thing. That land that is subsidized by paid for land at ridiculous prices, is not smart financial management.

In the 80's input costs were peanuts, machinery was cheap. I sense a big time teetering too up here, farma. I also sense a whole lot of denial. Look at the auction fliers. It ain't all peachy. They ain't all volunteer retirements.

The numbers. Just for you... hmmm, maybe I better not. It is a lot of money an acre to buy that land at 320 000!

[hobbyfrmr]

Farmaholic the dodge joke is a beauty.
Your "reality check" post is not so beauty.

I just saw canola prices below $10.00 in the Weber newsletter. China dockage issue is putting pressure on canola but that is a very disturbing price.

[Oliver88]

The numbers. Just for you... hmmm, maybe I better not. It is a lot of money an acre to buy that land at 320 000!

$2000 per acre? Yikes.......I agree.

[Horse]

Not trying to be nasty to Klause but what is the difference of family ties compared to exorbent oil wages to get into farming or out biding your niebor because you have $1500/ day wages?

[farmaholic]

In my immediate area it's trading for about $1500. About 8-10 miles away is the stuff that brought $2000, assessments about 83-93000, clay loam good drainage. The stuff around me is more variable(near the same to 10-15000 less assessment), sandy loam and clay loam. But still kinda the same stuff, rollier(Weyburn loam classification),good enough to make a living on(with low expectations-LOL):-)

[blackpowder]

Klause. Its easy, stop reading all the "farm" mags. Youll feel a lot prouder of what've got and earned when you stop needing validation from rock stars.

My bank allows $200/ ac revolve.
On top FCC allows what seems a no questions asked amount for inputs thru dealers. And of course there are the advances.
The trick is to keep robbing peter to pay paul, robbing paul back again while hes sleeping, and peter wont know the difference. But you better!

[malleefarmer]

hmmmm I inherited land hopefully that doesn't make me a arsehole, I got divorced my ex wife thought I was a arsehole, I sold land and borrowed money to fund divorce banks liked me not a arse hole, got a new model she thinks im not a arsehole, bought more land 10 years to get back were I was the banks don't think im a arsehole,had a few lean years banks think im a arsehole again, changed my farming structure changed banks they love me again......full circle sorry klause doesn't answer your question. PS the exwife has had two models since but both still in used man yard she hasn't been paid for change over yet.....I treid to warn em lol