Losing the Family Farm

[Thegreatwapiti]

I found out yesterday that my dad (and hunting mentor) listed the family farm with a real estate agent and there is a "For Sale" sign in the front yard. The farm is located in North-Central Minnesota and has been in the family since 1980. I shot my first buck that year at age 13.

Over the past 42 years, I estimate that my older brother and I have spent over 1,000 nights there each. Mowing grass, planting food plots, building deer stands, mending fences and pouring my blood, sweat, and tears into making it an amazing property and and true gem! We have transformed the property into a real hunting paradise. Our family and friends have harvested over 100 whitetail deer, 20+ black bear, and untold numbers of ducks, geese, and grouse. My 13 year old son shot his first buck there last fall (check out the 2022 Meat Pole).

The property is 160 acres, has 4 food plots, trails throughout, and 4 or 5 ponds. The property is basically "landlocked" to the point that I have never seen an outside hunter in over 40 years. I have posted several pictures and info on the property on WT under "Other Big Game" and the topic is Whitetail Planning. Check it out!

I'm posting this in hopes that I can draw on all of your collective knowledge and experience. HOW DO I KEEP THE FARM IN THE FAMILY?

My parents are both in their 80's with declining health. They need the money to afford long-term care and I totally understand that those things are way more important. Unfortunately, I live 1,000 miles away in Colorado. My boy and I travel to Minnesota every summer for a couple of weeks to do chores, chop wood, build treestands, etc. We then travel a second time during hunting season. Last year I spent 20 nights in the farmhouse.

Any brainstorming? What do you think about finding a few investors to own "a part" of a hunting lodge with hunting rights? Some kind of partnership? I believe the property is listed at 400k and my brother and I can scrape together about 75 each. There is probably an additional 10k in annual expenses. The farmhouse is 45 years old, has foundation problems, and probably needs 10k in improvements over the next year or two. The house is nothing special and ultimately may need to be replaced. The real value is the HUNTING LAND!!

ANY THOUGHTS?

[Swede]

I understand how you feel. I felt the same way when my grandparents sold their farm for the same reason. It is hard to justify buying a property like that for an occasional hunt or vacation. Letting others help with the purchase means they share the use and ownership. I suspect they would all live closer to the farm and would control what takes place there. My thought would be for you to buy it outright and move there, or let it go. Just keep the great memories like I do.

[Tigger]

Any ag or pasture land? It might be worth a call to the local NRCS office to see if you have any CRP-type programs you qualify for. And while you are there....

Another idea is to look into a conservation easement. The US Fish and Wildlife Service, Nature Conservancy and others will buy a conservation easement (50% to 80% of the value of the land I believe) on your property. You can never farm, develop, or build on those acres. You do NOT need to put 100% of the acreage into the easement.

Either might be enough to swing it for you.

[Swede]

I have been thinking some more about your situation. You could talk with an attorney and your grandparents about purchasing a use agreement from your grandparents before they sell. It will likely lower the value of the property, but if you compensate them appropriately it could work out for you and your brother. Just remember the more benefit you load onto the agreement the less value the property holds for a new buyer. I would propose a limited use agreement with a limit on time of year and for how many years. Limit the people it covers. Specify what the use is i.e., deer hunting, and what if anything you will do for the use. You could determine the value by asking some hunting clubs for their opinion.

[Thegreatwapiti]

Thanks guys! I appreciate the feedback.....my mind is racing.

There is one small ag-ready field but mostly forest land (oak, birch, poplar, and pine). I could definitely sell off lumber to finance some of the annual expenses but I wouldn't want to strip it. Anyways, keep the ideas coming. PEACE

[Tigger]

I think your best bet is a conservation easement. ag-ready does not qualify for any CRP programs that I am aware of, but you should contact NRCS.

[saddlesore]

In eastern Colorado, many of these old farms are leased. Would a neighboring farmer consider leasing it or isn't there enough cropland?. Maybe still let you hunt.The owners many times move to a retirement home. Timbering the trees might be the only answer .

If you and sibling could put up $150K, how long would it last them in a retirement home? $400 K for both won't last them long unless it just a retirement home. Once they get into assisted living, it goes up a lot. If you could get four people giving $2K a month that might do it and you keep title to it. It is going to be tough nut to crack

If it is already listed, it is tough to get out of it without a penalty, unless it doesn't sell in the length of the listing.

If they need the money ASAP a conservancy deal might take too long

[Lefty]

The conservation could be a good idea.
There's got to be a good tax attorney who knows how to deal with transferring properties.
You may know anm Ag extension agent that could help you out .

Or maybe there's a local banker that knows that ins and outs

Some friends just completed a conservation easement out east the property value had been 1.2 million and is now 700

[Thegreatwapiti]

Thanks everyone! We are making progress. Possibly setting up an llc to buy the property. Give parents 50k up front and a certain amount each month.

[Jhg]

Same thing with our farm. Same acreage, nearly, as well. It was tough. But buying out the parents would have held us back from going on with our lives. In the end it worked out. We moved on. As hard as it was, it was the best decision.
Sometimes a place is better a memory than a place that keeps you where you might not/should not be.

[>>>---WW---->]

How about you, or maybe you and your brother, purchase the farm with a contract for deed agreement with your parents . And allow them to stay in their home as part of the agreement for as so long as they choose to.

That way, they could have a home rent free plus a monthly income provided by you in the form of a monthly payment. The payment could be arranged to be an amount when combined with their social security would be a sufficient amount for them to live off of and the farm could remain in the family.

I'm sure a good lawyer could come up with some sort of arrangement that would be suitable for all parties involved.

[>>>---WW---->]

quote:(IF YOUR EYE LASHES DON'T FALL OFF JUST FROM LOOKING AT EM THEY AIN'T SHARP ENOUGH)

I always shot fixed blade heads. And never found one that was sharp enough out of the box to suit me. I always sharpened even the brand new ones. 3 blades are plum simple to sharpen on a fine stone. 2 and 4 blade ones may require a jig of sorts. There are plenty of good jigs out there. Just takes a little practice.

Just being lazy is the only excuse for shooting heads that aren't super hair splitting sharp!

OOPS!!! Sorry, this was supposed to have been posted on the (Sharpening Broadheads) thread.

[Thegreatwapiti]

I am on a plane right now, traveling to Minnesota to purchase half of the family farm!

The property consists of two, 80-acre plots. The east property contains the farmhouse, 2 pole barns, and is completely interconnected with trails. My parents are selling that property for 300k.

The west property is 80 acres of unimproved forest land. We are purchasing the west forest land for 100k. My brother and I will be forming an llc to purchase the land and setting up a buy-sell agreement so we don't end up being partners with each other's spouses or extended family.

We are actually buying the property for 35k (the original purchase price) and 65k for all of the equipment. This allows my parents to avoid capital gains. We plan on immediately pouring a concrete slab and having a steel garage installed. We will frame out a small part of the garage for a short-term (3-5 years) living space. This will give us time to design and build our permanent cabin. Almost all of the lumber will be sourced from the new property!

Thanks to everyone for your kind words! I have attached a photo of the new property. PEACE

[Deanmac]

Glad it is staying in the family!!!!

[Swede]

Congrats to you and your brother. I hope it works out well for both of you.