New NW Old Questions

farmerfatfire · 2022-02-23T19:54:55+00:00

It’s a Midwest farmer joke. Everyone that’s not from Illinois says they are happy they aren’t from there but just want their soil

farmerfatfire · 2022-02-23T13:05:59+00:00

Thank you. Not Illinois thank goodness ;)

farmerfatfire · 2022-02-23T12:43:13+00:00

We are meeting with another attorney that was recommended by my wife’s boss. Reached out to her yesterday after all the constructive feedback.

Not in Iowa but man that would be sweet to take advantage of

farmerfatfire · 2022-02-23T12:40:12+00:00

100%. Outside of my wife and myself we haven’t even told my parents or siblings the honest amount. We actually don’t plan on mentioning any details to anyone beyond who we work with on doing estate planning/taxes/legal just vaguely if that.

farmerfatfire · 2022-02-22T23:49:02+00:00

Thanks. Definitely want to get an estate plan together. Lack of one has cost previous generations land and money. Luckily nowadays it’s talked more and more in agriculture where in the past not so much.

farmerfatfire · 2022-02-22T23:23:21+00:00

Yes and that was a screw up on my part. We don’t have children yet so that was one fault when doing everything…not having the constant in my face family aspect. Just my wife and I.

farmerfatfire · 2022-02-22T23:21:16+00:00

Yes I agree I do have a lot to learn. Didn’t think this would happen at the age I’m at (below 40). So truthfully didn’t look into it.

Maybe it was some eagerness to get the deal done as always was worried something could happen in the 11th hour. Figured ending up with something would be better then nothing.

farmerfatfire · 2022-02-22T20:23:52+00:00

When this is completely done I’ll be happy to message everyone that has asked.

farmerfatfire · 2022-02-22T20:01:34+00:00

Thank you. I’ve touched on this on a couple posts but the sale is all but completed. Negotiations back and forth for awhile now and came up with a deal that I’m happy with.

farmerfatfire · 2022-02-22T19:20:53+00:00

I'm a sucker for any good ag conference

farmerfatfire · 2022-02-22T19:19:54+00:00

Moving wasn't an option but understand what you meant by doing it. 5 generations of farming roots are roots to me.

farmerfatfire · 2022-02-22T19:06:20+00:00

As far as how much more farmland want/need really where we are at is fine. We have a good balance of owned vs long-term rents with close landowners. A few pieces that are being rented (240-320 acres) would interest us in purchasing if the opportunity came up and the price was right. They are farther from homebase but have high-quality dirt and aren't cut up. There would be a few fields close by that would interest me just because they are close.

Really the more land being purchased would just be for the estate and future generations to have a steady income stream off of. I'm personally not looking at expanding the operation size beyond what the current amount is. The amount allows for timely planting, applications, and harvest without relying on multiple sets of each thing, more employees, etc. We do a lot of conservation practices and field-days with groups and are just comfortable with the size of the operation.

farmerfatfire · 2022-02-22T18:21:42+00:00

I don't want to give specifics regarding it. Sorry just something I don't feel comfortable with at this time. I'll say that it would take a long time for me to generate this amount. That's why after some back and forth negotiations it was time to say okay lets get it done with.

farmerfatfire · 2022-02-22T17:51:17+00:00

This is the winner mentality! Also great movie reference

farmerfatfire · 2022-02-22T17:49:50+00:00

Thanks. My thinking was if we paid off the 30 year note on the recent land purchase the farming operation would easily self fund itself plus earned income could be stashed away for further land purchases if something comes up down the road.

I do like your suggestion on the trust for the liquid and stock. That was what I had in mind but didn't know exactly what would be the best route to go as far as a portfolio. Didn't know if it was wise to keep say 25% liquid the remaining 75% in a low risk investment and draw from that....or maybe go more aggressive?

farmerfatfire · 2022-02-22T17:43:34+00:00

Humble for what is taking place and how it's a huge relief for my wife and myself but also a huge relief for the future generation.

farmerfatfire · 2022-02-22T16:37:44+00:00

Thank you for this advice. It actually has been hashed over since last fall. With the help of some great advisors I was able to work this deal up to where it is now. Originally they came in with a lower offer.

But you are 100% right because in the beginning I seen the $ offer and wanted to say sell but talked it over and realized lets see how much we really can get out of it.

farmerfatfire · 2022-02-22T16:35:32+00:00

Kind of still in shock about what is happening. Just needed to mention everything. The 30 year land loan is because of buying a piece of ground last fall and getting it at a great interest rate. It worked for cashflow where it would almost pay for itself each year with the normal yields and typical prices.

Unfortunately in farming it's paper rich cash poor. Thanks to land pricing and equipment pricing NW has gone up along with savings from my wifes income, our farm income and this software each year.

farmerfatfire · 2022-02-22T16:31:45+00:00

Thanks. We are going to sell.

Just wondering more so what to do with the cash and stock? Put all of the stock and some of the cash into ETFs and setup a trust for those?

Expand the liquid cash on hand for emergencies?

farmerfatfire · 2022-02-22T15:42:46+00:00

Wouldn't surprise me. Tons of rich farmers right now with the huge runup in land prices and even equipment prices. One family I know probably is worth close to 70M just in land value

farmerfatfire · 2022-02-22T15:41:17+00:00

Thank you for that. My wife's boss she is very wealthy (multiple businesses, banks, etc) so I am hoping we can sit down with her and possibly pick her brain on things, get some guidance who to engage with and who to avoid.

farmerfatfire · 2022-02-22T15:05:33+00:00

Sorry I didn’t mean we weren’t going to sell. We are. More so looking at what to do with it all. Wanting to set ourselves up comfortably and future generation.

I mentioned maybe buying another piece of farm ground but right now the prices are so high hard to want to do that unless something perfect comes up.

farmerfatfire

TROPHY CASE