Problem is that in our situation we have a family farm valued at 1.2 million. My dad and Aunts wont ever sell it so eventually the grandkids will get it but 1.2 divided 10 ways isnt that much.
1.2 divided 10 ways is way more than I'll ever inherit.
Problem is that in our situation we have a family farm valued at 1.2 million. My dad and Aunts wont ever sell it so eventually the grandkids will get it but 1.2 divided 10 ways isnt that much.
Is this a done deal? I thought it was going to be in any new farm bill (& I thought that hadn’t occurred yet)Going forward CRP payments are capped at a maximum of $300 per acre. The days of $350+ payments are done.
Sounds like some people need to be eliminated.Problem is that in our situation we have a family farm valued at 1.2 million. My dad and Aunts wont ever sell it so eventually the grandkids will get it but 1.2 divided 10 ways isnt that much.
Problem is that in our situation we have a family farm valued at 1.2 million. My dad and Aunts wont ever sell it so eventually the grandkids will get it but 1.2 divided 10 ways isnt that much.
Problem is that in our situation we have a family farm valued at 1.2 million. My dad and Aunts wont ever sell it so eventually the grandkids will get it but 1.2 divided 10 ways isnt that much.
Is this a done deal? I thought it was going to be in any new farm bill (& I thought that hadn’t occurred yet)
https://www.extension.iastate.edu/soils/sites/www.extension.iastate.edu/files/soils/County CSR2 (NRCS) Weighted Means v1.1 22May2017.pdf
That should give you a good idea.
From a farming standpoint for ag value, anything under 40 acres would have some value deduction for size. Under 20 and farmers really won’t want to mess with it unless it’s right next to something they already farm.
Don’t ever claim inheriting $120,000 as a “problem”
I can't think of any other business with so much welfare. I know a lot of small business people that feel the same way.
the purpose is to establish long term ground cover and protect soil and fields. Iowa has the most "changed" landscape in the entire country and the CRP program aims to put more land back into a natural state. Since farming is lucrative (?) the state pays people a comparable amount to not farm it.
it makes sense and i support finding ways to protect our land.
on the other hand, we also have agricultural subsidies and crop insurance which encourage people to farm and only farm certain crops. there is a reason why iowa is heavy in soybeans and corn - those have the most federal and state protection. in essence, we subsidize people to grow very specific row crops and pay others to not grow those same crops. it's very odd.
Investors fueled things also. Emotion and euphoria.
Know a guy who had 420 acres free and clear. He purchased 80 acres for $1 million. In essence he now owed $2,000 per acre on the 500 acres he now owns. IMO he was better off with no debt. But that is just my opinion.
Sounds like some people need to be eliminated.
That kind of corresponds with our observations. Single family can get up to 40 acres. I've only done a couple at that size and they are usually either timber or fairly steep rolling hills with some pasture. Of course people do some weird things. What do you do with a 10 acre parcel but they let someone run across the middle with rows of beans? Then you get to the inevitable whole grass farming thing/idea that people in the burbs love to do as a hobby. At what point does that go from weird hobby to money producing farm? IMO not enough income to worry about it most times.
Farminclone or anyone. Anyone have an idea of what the average or median CSR would be for most crop ground?
I get into a pinch sometimes as the dividing line between residential and farm use gets really blurry. For instance, I'm staring at a parcel that they are building a new house on but the assessor lists the best part of the ground at 5.7 ac of 69 CSR. I think its likely too small to mess with even at 100 because its never been "farmed". Of course I can't do farm appraisals due to state regulations but they won't touch a definition with a 10' pole. Typical government creating problems.
Right now it is being cash rented for $200/acre to a neighboring farmer. They aren't currently looking to make a lot from the land but just make something on it until they pass it to us.
As for your question, why can't I wait to sell it, because I don't want to deal with the land and would rather just have the cash sale.
I have a client who just inherited a bunch of land, it was appraised for $8000/acre and they sold 50 acres for $8800/acre in order to pay off the mortgage and Iowa inheritance taxes (it was a weird situation) and they are planning to keep the rest and cash rent it. If I was them I would have sold it all took the approx. $2 million and not have to deal with the hassle.
Well, that and there's no viable market for anything else.
Renting farmland is a really easy way to have a steady side income, and that asset is likely to appreciate.
Rather than sell it, I'd recommend you shop it out ($200/acre is a ways below the market in my area - not sure about the neck of the woods you're in) to a new tenant, or increase the rent on the current one. Collect that steady stream for awhile and when you get farther down the road, you can probably sell it for more than it's worth today.
The landlord doesn't have to have much involvement at all in the process of owning land, other than writing the property tax check.
Investors fueled things also. Emotion and euphoria.
Know a guy who had 420 acres free and clear. He purchased 80 acres for $1 million. In essence he now owed $2,000 per acre on the 500 acres he now owns. IMO he was better off with no debt. But that is just my opinion.
Appreciate the advice, but selling it right away could buy a lot of top of the line racing equipment.
Appreciate the advice, but selling it right away could buy a lot of top of the line racing equipment.