The first one arrived today
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For a child that is taking over the farm, the land can't be divided equally or they don't have much of a chance. That said it sets them up at retirement to be way ahead financially.
Generally, 1% share is given to the child that stays per year for the sweat equity in addition to wages. To buy out it should be done on a 10 year plan not 3-5. I'm talking about actually farming. The issue comes around when 2 want to farm but there is only room for one.
Dad's don't typically train the child to take over which is a real problem. Also compounding issues are in laws. For example you have 4 kids and 2 have stable long term relationships. Bypassing the spouse of your child really isn't fair. It's easy to see not giving property to the inlaw. You can set up bypass trusts where income is provided for the spouse of the child Or you can by a strong life insurance insurance policy on your child.
I'm the age I've got to really hate someone to cropdust them. 50% of my forced farts end in a shart.
We take all share crop beans across the scale, and they get split between the landlords account and ours. Corn is a little different, and does take some trust (and a good grain cart driver who can operate a scale and a notepad). Between the combine monitor, tracking the bushels in the bin(s), and what went to town, it isn't too hard to split.
Could bushels easily be hidden? Absolutely, but if you weren't trusting of the guy farming your ground, why is he farming it at all?
My top customers are 250+ corn averages and 80 bushel beans aren't a surprise anymore. Those that actively manage the ground have had several years, where over all their acres (when we don't have drown outs) have consistently averages 240+ and 75+. We are in 30" row country, and conventional tillage for the most part. Our fall worked ground is always warmer and quicker to be able to work in the spring, but I do have one pretty progressive farmer who isn't farm behind yield wise, and probably takes are of the ground better than most.
Always interesting to sit across the desk from the bottom end yielders and the top end yielders, and have the conversations on why they do what they do. Always puts me in a position to learn, which I enjoy.
There is a lot of ugly crops north of highway 18 in my part of the world. 20% drowned out in some fields. Gonna be an interesting fall. We planted our silage corn on May 30th and it is 114 day. Didn't have much choice as our original destination for the silage corn was under water for most of May/June so we had to switch some bean acres.
I'm north of 18, and yes, it looks rough. Have a little prevent plant in our area, but gets worse as you head west towards Emmetsburg and Spencer. Very little locally, not even sure we had on PP claim (though we talked several through the scenarios), thanks to no pre down, which allowed beans on beans. We replanted just about 10% of our corn acres, and many of those acres more than once. Strange spring.
Around here, the arrival of 20 inch row planters with high-speed tillage is prevalent. Tillage has greatly increased regardless of nutrient loss reduction initiatives. That war is being lost. Carbon credits are mostly a joke for the payment and I don't see many getting involved with the 45z tax credits. I, as well enjoy the learning process. It's like solving a puzzle.
My best farms I figure for next year (for round numbers):
250 x $4.50 x 36% for a base of $405 per acre. These farms (even the 83 csr one I talked about) would sell for 17k minimum. A 2.5% return is $425. $4.50 is about fall 2025 futures. Then there would be a bonus. I have some farms at 38%. Soybeans typically 42% but some at 44%. Bonus figured by average price of a set day of the month for Jan - Nov. We can get a lot of takers (good ones) at that. Our property taxes do run from $37 to over $50 per acre.
Most land is bought by farmers paying cash. A few with investors along with them. Prime ground that is well-tiled can still hit 20k, but getting fewer in between.
Cover crops aren't very well received here. I've seen enough of interstate pileups blamed on God. It's high speed farming that is the main cause.
I just droned a replant (June 27) soybean field for stand count. Got hit again. It was planted at 175k the 2nd time. Drone Deploy (which I like for field health) stand count was way off on soybeans. Agremo was pretty spot on at 94k left.
If you are in NW Iowa near 18, you've had some great years recently under not so great conditions. Magic?
Yes, but it is ours now. Over the years we have all used the rising value of this land as collateral to purchase additional acres. I bought more than one piece of hay and pasture ground, but it still had to be worked in order to get a return. I'm not going to apologize for the sweat that was poured into these better parcels that have supported us as a family for 150 years.
