>
> Your statistics would indicate there is a great need for good life
> insurance agents in Iowa. 9 months after the death the feds want their
> pound of
> flesh. If the funds aren't there, the farm needs to get sold. A form of
> redistribution of wealth. If folks want to keep it in the family, they
> need
> to have life insurance or a bunch of cash.
>
We're actually going through that right now. My in-laws are in their
eighties and just now trying to figure out what to do. (not the brightest
financial minds).
One primary solution is to incorporate the farm and put the family members
on the board of directors. Essentially, the key is to keep the farmland and
live on the cash rent. As long as we never sell the land there is no
inheritance taxes to worry about. Only the foolish and desperate give their
farms to the government.
Rent works out to about $1.10 USD per bushel of corn right now. $4.00 USD
per bushel of beans. The more fertile the land, the more you can charge.
Sharecropping is another way to go and it usually results in higher income
for the landlord. You split the costs and split the revenues. Unlike
renting, though, there is risk involved if you have a bad year.
Landlords may also setup storage bins on their land, buying the crops at
harvest prices, dry and store it for a few months and then sell it
throughout the year when prices go high. As long as you can clear $0.40 per
bushel per month you make money.
AG
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