We’re approaching the holiday season, and many farm houses will soon be buzzing full of kids and grandkids. There’s something extra special about having the whole family out at the farm, and there’s no good way to describe the warmth and satisfaction that comes from watching the new generation feed the hens, chase the barn cats, or just get into mischief. Your farm is a part of your family’s culture and history. So what are you going to do with it as you get older?
The Holidays provide an opportune moment to sit down with the whole family and think about the farm and what will happen to it in the future. Your kids might live in the city with their families now, but maybe they’ve been secretly itching to take over the family farm. Before you make any decision about retirement, it’s a good idea to really talk with your kids.
After all, retirement is a tricky topic for many older farmers. It can be hard to know how selling such a lucrative asset would even work. What sort of taxes will you face? Will there be enough left over to fund your retirement? Many farmers don’t even want to retired — they’ve been farming since they could walk, and they fully expect to keep farming until they can’t. Others can trace their land back to the $5 homestead agreement, and they can’t imagine not having the land in their family. If none of their kids or grandkids seem interested in taking up the family heritage, that can be very hurtful and saddening for this older generation of farmers.
Rent not Sell.
An option some farmers may want to consider is renting their land instead of selling it. This will allow a new generation of farmers, who maybe can’t afford to buy land, to get started in the trade. It also gives your kids or grandkids a little more time to change their mind. Farmland is a lucrative asset, and with so many young folks itching to get their hands on some land, there’s a ton of money to be made by renting out your farm to one or more parties. Plus, many farmers enjoy being able to maintain some control of their land.
As another year wraps up and you beginning looking towards the future, it may be time to evaluate your operation and decide what your goals for the next decade are. Whether you’re thinking of selling off the farm or expanding your operation, the expert land brokers at Hansen Land Co. can help set you on the right path. Let us wish you a Merry Christmas and all the best in the new year!