What would you do - $450K in farm land

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hcrossing
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What would you do - $450K in farm land

Post by hcrossing »

New member to the boglehead community and wow, what a great place. Wish I would have found this earlier. Here's the scenario. Mom inherited farm land from her parents and then gifted it to myself and two brothers but retains a life estate. She rents the farm land at a rate that is 45% of fair market value for farm land rent, $7,000 per year. She does this because it's easy. She is now wishing she didn't gift us the land as she needs more money to live off. We three brothers are looking for options for her to make more money, in addition to just raising the rent by more than double. The land is valued at approximately $450,000. She would like to leave as much as possible to us when she dies but wants to earn as much as possible during the year. We don't care if she spends it all while she is alive. We estimate her life for another 20 years. Here are some options we have thought of.

Sell the land and gift her back all the money (we pay a 15% capital gains tax on it if done by year end) She invests in low risk funds and makes regular withdraws
Sell land and do a "like-kind exchange" or 1031 exchange into other rental property that could make more than what the farm land at fair market value rent could make, probably an additional 20% per year. This defers the 15% tax but raises the amount of effort
Raise the rent to fair market value

Any other thoughts/ideas would be greatly appreciated.
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happymob
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Re: What would you do - $450K in farm land

Post by happymob »

Raise the rent. Why would you ever take significantly below-market value in rent?

Edit-apologies for that not being "another option"
clacy
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Re: What would you do - $450K in farm land

Post by clacy »

I would sell it ASAP. Farmland is in a ridiculous bubble and we all know how those usually end. Of course that is simply my personal opinion. But regardless, you have to figure out a way to get a fair rent should you decide to keep the property.
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CaliJim
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Re: What would you do - $450K in farm land

Post by CaliJim »

I'm no expert - I don't know if farm land is in a bubble or not. Sometimes high price levels are sustained, sometimes not, and you can only tell for sure if something was in a bubble by looking in the rear view mirror.

Look at this from a total portfolio perspective - with diversification as a goal.

This farm land could be a great versifier, or an overly concentrated position.

What does the rest of the portfolio look like?

What percentage of your mom's net worth (including NPV of pensions and SS) is represented by this asset class?

If it represents less than 10 or 20% - I might be inclined to keep it and raise rents.

If it represents a much larger portion of her wealth - then selling and diversifying into stock index funds and investment grade or above bond funds would be the thing to do.

If you sell, I'm not clear what legal and tax entanglements might be involved in selling a property tied to a life estate. Get some good advice on that so all the right docs are signed to pass the title free and clear.
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staythecourse
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Re: What would you do - $450K in farm land

Post by staythecourse »

Could you set up a charity remainder trust or charity annuity trust??

Or just make it easy and sell the land.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
Rubiosa
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Re: What would you do - $450K in farm land

Post by Rubiosa »

How many acres are you talking about, what crops are grown, and what are your crop yields? $450K would buy you a nice 125-acre farm in the Mississippi delta, irrigated and leveled, and the going rent to your mother would be 25% of the crop yields and would come out to about $30K to $40K per year. If your land is mainly hay and timber, those figures would not apply, but in any case, being a farmer myself, I would never sell a single acre for any reason other than life itself.
bmelikia
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Re: What would you do - $450K in farm land

Post by bmelikia »

Rubiosa wrote:How many acres are you talking about, what crops are grown, and what are your crop yields? $450K would buy you a nice 125-acre farm in the Mississippi delta, irrigated and leveled, and the going rent to your mother would be 25% of the crop yields and would come out to about $30K to $40K per year. If your land is mainly hay and timber, those figures would not apply, but in any case, being a farmer myself, I would never sell a single acre for any reason other than life itself.
Along the lines of what Rubiosa said. . .

If you have quality, sought after farm land (aka abundant/good quality/cheap water and strong soils) - I would search out growers in your area who produce high dollar crops and approach them about renting your ground so that you can command a higher rent. I don't know if you can charge as high as 25% of gross profits but you can do better than what you're doing now. I only know of people paying 25% when they are using someones established orchards - almonds in my case. . .

I know that row crop farmers in my area pay $175 to $225 per acre - this is pretty standard
"I would rather die with money, than live without it...." - Bogleheads member Ron | | A time to EVALUATE your jitters https://www.bogleheads.org/forum/viewtopic.php?p=1139732#p1139732
waitforit
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Re: What would you do - $450K in farm land

Post by waitforit »

Reminds me of the goose and the golden egg.
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hcrossing
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Re: What would you do - $450K in farm land

Post by hcrossing »

Thanks so much for your input. We do appreciate it.

Mom is the one negotiating, if you call it that, the farm rental contract to a person that is as close to family without being family. She has a hard time saying no, I want more, etc. and doesn't want any sons involved in her "negotiations". The farm consists of 60 acres tillable, 60 acres wood and 9 acres miscellaneous. The tenant plants corn or soybeans and we have no idea what the yield is. Fair value is approximately $275 / acre while my mother is charging approximately $125 / acre.

In terms of her overall portfolio, she receives $15,000 in SS and $7,000 in a pension, both are per year numbers. From the farm rentals (see below for information on the second farm) she makes approximately $17,000 per year. In total, this sounds like it should be enough money per year ($39,000) but her medical expenses cost over $1,000 per month that medicaid/care doesn't pick up. In other accounts, she has $64k in a money market. $16,000 in a variable annuity account. $194,000 in an IRA that she hasn't yet started pulling withdrawals but will by the end of the year. In addition to the land that we technically own but in which she rents it out through the life estate, we also own an additional farm that we treat as hers through a life estate that is valued at $372,000. She lives there and rents this out for fair market value of approximately $10,000 for the year.
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Re: What would you do - $450K in farm land

Post by KyleAAA »

I inherited a 150 acre farm with my brothers in central Georgia and, not knowing your actual situation, your numbers seem in the right ballpark for me (i.e. you should be able to get $14-15k per year just renting to a local farm). This is a straight-up lease with no claim to residual profits if crop yields are high: low risk and completely passive other than cashing the check at the end of the year. Timber land is probably going to yield a bit more than farm land. At least, that's the case where I am from what I can tell. I'm obviously no expert and it all depends on the specific plot.
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BL
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Re: What would you do - $450K in farm land

Post by BL »

hcrossing wrote:Thanks so much for your input. We do appreciate it.

Mom is the one negotiating, if you call it that, the farm rental contract to a person that is as close to family without being family. She has a hard time saying no, I want more, etc. and doesn't want any sons involved in her "negotiations".
I am wondering if this person serves some valuable purpose to her; can she call on him to help with minor and major emergencies or other needs or just to discuss ideas? It is not clear if any of her own family lives nearby. An older woman living alone on a farm may welcome a close friend she can rely upon which will enable her to live there safely and comfortably. Anyway, she is right to decide on her own unless she asks for help with this. She probably knows the finer points of rural relationships that are lost to those not living there. It sounds like she knows the value of the land. I think it is great that you are looking out for her and want to do the best thing for her as well. Selling the land could be an emotional as well as financial decision, depending on how attached she is to this inherited land. Perhaps she also looks at it as a source of emergency funds such as for long-term care.

With her assets, I assume you mean she has Medicare not Medicaid where you have to spend down your assets. Does she have a Medicare supplement and Part D for medications? (You mentioned high medical costs.) There is an open season soon for changing if there is a more suitable choice available. For instance, you could help by researching which convenient pharmacies would be lowest cost for her particular medications by searching the Medicare website for her (assuming she is not a techie). Nothing is simple about growing older!
Slick8503
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Re: What would you do - $450K in farm land

Post by Slick8503 »

What are you getting the average farm rent #'s from? Where is the farm located?
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hcrossing
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Re: What would you do - $450K in farm land

Post by hcrossing »

BL wrote:
hcrossing wrote:Thanks so much for your input. We do appreciate it.

Mom is the one negotiating, if you call it that, the farm rental contract to a person that is as close to family without being family. She has a hard time saying no, I want more, etc. and doesn't want any sons involved in her "negotiations".
I am wondering if this person serves some valuable purpose to her; can she call on him to help with minor and major emergencies or other needs or just to discuss ideas? It is not clear if any of her own family lives nearby. An older woman living alone on a farm may welcome a close friend she can rely upon which will enable her to live there safely and comfortably. Anyway, she is right to decide on her own unless she asks for help with this. She probably knows the finer points of rural relationships that are lost to those not living there. It sounds like she knows the value of the land. I think it is great that you are looking out for her and want to do the best thing for her as well. Selling the land could be an emotional as well as financial decision, depending on how attached she is to this inherited land. Perhaps she also looks at it as a source of emergency funds such as for long-term care.

With her assets, I assume you mean she has Medicare not Medicaid where you have to spend down your assets. Does she have a Medicare supplement and Part D for medications? (You mentioned high medical costs.) There is an open season soon for changing if there is a more suitable choice available. For instance, you could help by researching which convenient pharmacies would be lowest cost for her particular medications by searching the Medicare website for her (assuming she is not a techie). Nothing is simple about growing older!
The farm in question is located in Iowa, while she lives in North Dakota, almost 7 hours away. The person renting is in Iowa and doesn't assist with any personal needs. One of us lives within 4 hours of mom, the other two a flight away. She doesn't know the value of land nor the value of investing and has finally come to me (sad to say the only one with even a limited knowledge of investing out of the three brothers). While the farm has been in the family for 96 years she is passed the emotional attachment with her parents being gone for a number of years, she doesn't visit the farm regularly and the fact that she just doesn't have enough money to do the things she would like to do (ie. spoil the grandkids, see her own children more than she currently does, get really involved with her hobbies, etc.). I do mean Medicare, not caid. Unfortunately her medical costs cannot be lowered due to the speciality of the meds she is taking. While the disease she has is not curable, it is not deadly either unless the meds are not taken.

The rent value has been determined by a couple of phone calls by me to a few people in the area that I know in addition to realtors selling land. My mom has also confirmed the rent numbers talking to a few of her friends still in the area. All numbers are very similar. The contract stipulates a set amount for the next year and is not based on crop yield or anything other than the amount of available tillable acres, 60.

While we don't care what she does with the farm, again we think it is hers even though we technically own it, she wants to maximize any revenue associated with the value of this land. This could involve selling it and investing it a different area or just raising the rent.
Slick8503
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Re: What would you do - $450K in farm land

Post by Slick8503 »

If there's no emotional attachment, then I can't think of a better time to sell it. Sounds like the farm makes up a rather large portion of her NW, so I think it would be prudent to sell and add some diversification into other investments from the proceeds. Maybe the current tenant will have some interest in purchasing it.(at market rate of course)
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Hub
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Re: What would you do - $450K in farm land

Post by Hub »

Assuming you don't anticipate any snags with your brothers willingly gifting the farm back to her, then selling the place seems like it would benefit her more than keeping it.
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BL
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Re: What would you do - $450K in farm land

Post by BL »

hcrossing wrote:
BL wrote:
hcrossing wrote:Thanks so much for your input. We do appreciate it.

Mom is the one negotiating, if you call it that, the farm rental contract to a person that is as close to family without being family. She has a hard time saying no, I want more, etc. and doesn't want any sons involved in her "negotiations".
I am wondering if this person serves some valuable purpose to her; can she call on him to help with minor and major emergencies or other needs or just to discuss ideas? It is not clear if any of her own family lives nearby. An older woman living alone on a farm may welcome a close friend she can rely upon which will enable her to live there safely and comfortably. Anyway, she is right to decide on her own unless she asks for help with this. She probably knows the finer points of rural relationships that are lost to those not living there. It sounds like she knows the value of the land. I think it is great that you are looking out for her and want to do the best thing for her as well. Selling the land could be an emotional as well as financial decision, depending on how attached she is to this inherited land. Perhaps she also looks at it as a source of emergency funds such as for long-term care.

With her assets, I assume you mean she has Medicare not Medicaid where you have to spend down your assets. Does she have a Medicare supplement and Part D for medications? (You mentioned high medical costs.) There is an open season soon for changing if there is a more suitable choice available. For instance, you could help by researching which convenient pharmacies would be lowest cost for her particular medications by searching the Medicare website for her (assuming she is not a techie). Nothing is simple about growing older!
The farm in question is located in Iowa, while she lives in North Dakota, almost 7 hours away. The person renting is in Iowa and doesn't assist with any personal needs. One of us lives within 4 hours of mom, the other two a flight away. She doesn't know the value of land nor the value of investing and has finally come to me (sad to say the only one with even a limited knowledge of investing out of the three brothers). While the farm has been in the family for 96 years she is passed the emotional attachment with her parents being gone for a number of years, she doesn't visit the farm regularly and the fact that she just doesn't have enough money to do the things she would like to do (ie. spoil the grandkids, see her own children more than she currently does, get really involved with her hobbies, etc.). I do mean Medicare, not caid. Unfortunately her medical costs cannot be lowered due to the speciality of the meds she is taking. While the disease she has is not curable, it is not deadly either unless the meds are not taken.

The rent value has been determined by a couple of phone calls by me to a few people in the area that I know in addition to realtors selling land. My mom has also confirmed the rent numbers talking to a few of her friends still in the area. All numbers are very similar. The contract stipulates a set amount for the next year and is not based on crop yield or anything other than the amount of available tillable acres, 60.

While we don't care what she does with the farm, again we think it is hers even though we technically own it, she wants to maximize any revenue associated with the value of this land. This could involve selling it and investing it a different area or just raising the rent.
Since she doesn't live there I would be more determined to get fair market rental or consider selling the land. The problem with selling is the wish to maintain principal; otherwise she could invest part or all in a SPIA for a guaranteed amount as long as she lives (could also have a 10 or 20 year guarantee but that would lower return) with nothing left after that. Simply investing in a Target Retirement Income (or tax-managed balanced fund) would give some income with a fair chance of keeping most or all of the principal. Having a quarterly income (income + some principal if a fixed amount is preferred.) would be good. Using Vanguard or similar low-cost funds where you invest directly would minimize expenses related to investing.
I would strongly advise getting the exact names of her meds and putting them into the Medicare drug plan finder as it is possible that there are savings available: https://www.medicare.gov/find-a-plan/qu ... /home.aspx
64415
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Re: What would you do - $450K in farm land

Post by 64415 »

waitforit wrote:The farm consists of 60 acres tillable, 60 acres wood and 9 acres miscellaneous. The tenant plants corn or soybeans and we have no idea what the yield is. Fair value is approximately $275 / acre while my mother is charging approximately $125 / acre.
I would not sell the farm. What is she going to put the proceeds into? A CD yielding 1.25%? A portfolio of Ameriprise funds?

It is imperative she get the market rental rate. Keep this in mind: that nice young man she is renting the land to most likely has averaged $475 per acre in profit after paying your mom rent. I am assuming a below average Iowa farm with a CSR of 60 and average yields of 180 bushels per acre on corn. $6/bu corn X 180 bu/acre - $480 per acre in inputs (assuming he is a bottom quartile farmer/manager).

Point this out to your Mom and ask her just how much of her rightful wealth she should be transferring every year to this man.

If you place an ad for "ground available to rent" in the county newspaper and list $300 per acre, you will have 30-40 phone calls.

By the way, take the average CSR for the tillable acres and multiply it by $125 per acre and you will have the current fair market value. Assign $2,500 per acre to the timber.

Sincerely, Sebastian.
Slick8503
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Re: What would you do - $450K in farm land

Post by Slick8503 »

No matter if she's getting fair market value or not, she shouldn't have such a high % of her portfolio in farmland. A good option would be sell whatever portion of the land that would bring the % of farmland as NW down to around 25%. I realize the small size of the parcel makes this impractical.
mnnice
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Re: What would you do - $450K in farm land

Post by mnnice »

64415 wrote:
waitforit wrote:The farm consists of 60 acres tillable, 60 acres wood and 9 acres miscellaneous. The tenant plants corn or soybeans and we have no idea what the yield is. Fair value is approximately $275 / acre while my mother is charging approximately $125 / acre.
I would not sell the farm. What is she going to put the proceeds into? A CD yielding 1.25%? A portfolio of Ameriprise funds?

It is imperative she get the market rental rate. Keep this in mind: that nice young man she is renting the land to most likely has averaged $475 per acre in profit after paying your mom rent. I am assuming a below average Iowa farm with a CSR of 60 and average yields of 180 bushels per acre on corn. $6/bu corn X 180 bu/acre - $480 per acre in inputs (assuming he is a bottom quartile farmer/manager).

Point this out to your Mom and ask her just how much of her rightful wealth she should be transferring every year to this man.

If you place an ad for "ground available to rent" in the county newspaper and list $300 per acre, you will have 30-40 phone calls.

By the way, take the average CSR for the tillable acres and multiply it by $125 per acre and you will have the current fair market value. Assign $2,500 per acre to the timber.

Sincerely, Sebastian.
ITA with Sebastian. She is getting ripped off on the cash rent and would have done way better with a 40% share (the most common way to rent where I live currently).

Unless the farm in question is in the far southern part of the state it is most likely worth more than 450K too. Any land that has sold recently near my folks (central Iowa) had gone for 10K per acre.

I am adding this link I thought was interesting. http://www.agweb.com/blog/Your_Precious_Land_217/
Slick8503
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Re: What would you do - $450K in farm land

Post by Slick8503 »

I missed the 60 acre tillable detail. I figured it was a 40. I'm betting it's in Southern Iowa.
MathWizard
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Re: What would you do - $450K in farm land

Post by MathWizard »

How about sharecropping?

My MIL does this with a close family connection.
She pays the taxes on the land (as your mother probably does now) and pays 1/3 the seed, fertilizer, and grain drying (don't know about fuel).
She gets 1/3 of the crop at harvest.

The problem with rent is that it should go up with inflation, but widows typically set it and forget it, because its easy, and
they do not want to negotiate especially with family. Share-cropping shares the risk and the reward.

Since she gifted the farm to you, is there some way you can essentially buy what you were given?
Since there are three of you, she gave you the equivalent of $150K each.
A $150K mortgage even at a low 3% amortized over 30 years would be about $633/month.
She needs at least $7K more, which will probably be going up.
If it were my family, and you couldn't agree on selling, I'd suggest either

1) Each of the three brothers pays $317 per month into an account (half the mortgage payment if you went for 30 years.)
Transfer $8K/year into an account that she has access to, and raise the amount 3% per year.
This stays positive for 22 years, which is longer than you expect.
I hope you are lucky enough to pay for more than 30 years.

2) Offer to take over the rent or share-cropping details and pay her reasonable rent. (If you can get $15K/acre, make the arrangements
with the renter, or someone else, and send her the money.)


Is she paying the land taxes or are the children? Maybe that's another option to take up some of the expenses.
cyfan
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Re: What would you do - $450K in farm land

Post by cyfan »

For anyone with an elderly parent who is an absentee owner of farm land and who does not get anywhere near the cash rent determined by fair market values, I would recommend they talk to a farm management company. You do not necessarily have to do business with them long term but they can do an evaluation of the farm land and inform you of what they can get for cash rent for your particular situation. It may not be a bad idea to go with them for one year so you get a good renter, maximize rent, then keep renewing on your own. I can tell you that they typically get 7% to 8% of the cash rent for "management fees" depending on the size of the farm. While this may seem high, it is better than getting 50 to 75% of the real market value for rent. My mother did not want to waste the money on farm management fees and consequently garnered only about 60% of the fair rent because she was friends with the renter. When she passed and I became co-trustee, we hired farm management and the rent nearly doubled in the next year.
adam1712
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Re: What would you do - $450K in farm land

Post by adam1712 »

You may have already found it, but the Iowa State extension service is an excellent resource in trying to determine the value and fair rent rates.

Here's a link to get started:
http://www.extension.iastate.edu/agdm/

My two cents is it's probably not a bad time to sell. I wish I could get my parents to diversify a little but no way that's happening as my dad just bought some more central Iowa farmland. If your mom would like to continue to rent, I'd negotiate with the tenant with the fact that the rent is going to go up or you will be forced to sell. Trust me, the tenant knows they have a good deal. Also, with annual rental rates published, I see no reason the rent can't be tied to the percent increase in those numbers.
jared
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Re: What would you do - $450K in farm land

Post by jared »

I don't have any specific recommendations, but just wanted to point out that if the decision is made to sell the farm, the transaction might have a different result than you think. It sounds like there are multiple interests in the property (mom's life estate and children's remainder interest). The basis (assuming FMV at mother's parent's date of death) should be allocated between the multiple interests using IRS tables. The proceeds from the sale might also need to be allocated between the multiple interests (probably a matter of state law).

Here's a more detailed explanation from a recent post: http://www.bogleheads.org/forum/viewtop ... 4#p1487774

Ignore the part about the Section 121 exclusion because in your case, we aren't talking about a residence.
SGM
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Re: What would you do - $450K in farm land

Post by SGM »

University of Maryland extension put out the following information for 2007

Calculating Cash Rent
1. Typical Cash Rent
Iowa
Area 3 County Cerro Gordo
Determine Overall average $ 200
High Quality Third = $ 238
Middle Quality Third =$ 204
Low Quality Third = $ 159
"Let us endeavor, so to live, that when we die, even the undertaker will be sorry." Mark Twain
Slick8503
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Re: What would you do - $450K in farm land

Post by Slick8503 »

Rents are substantially higher than they were in 07. Why would Maryland publish Iowa rental rates?
64415
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Re: What would you do - $450K in farm land

Post by 64415 »

University of Maryland extension put out the following information for 2007

Calculating Cash Rent
1. Typical Cash Rent
Iowa
Area 3 County Cerro Gordo
Determine Overall average $ 200
High Quality Third = $ 238
I agree with slick8503, these rates are no longer applicable. Cerro Gordo has some of the best farm ground in the world. Think of rich black loam 3 feet deep. 250 bu per acre on corn is expected. At a minimum I would double those cash rent numbers. The farms we cant have custom farmed we rent at $400 per acre and the quality is not as good as a Cerro Gordo farm.
64415
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Re: What would you do - $450K in farm land

Post by 64415 »

[quote=]250 bu per acre on corn is expected. [/quote]

I need to edit my comments, Cerro Gordo is a little further west than I realized and doesnt receive the same amount of rain as the counties to the east. They would still get 200 bu/acre in a good year, but not 250. I would still not take less than $300/acre for cash rent on a Cerro Gordo farm.
gandolphfitch
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Re: What would you do - $450K in farm land

Post by gandolphfitch »

While many of the responses have dealt with what the proper cash rent should be, that isn't the original poster's problem. His problem is that his mother will not agree to consider raising the cash rent. I deal with multiple clients like OP's mother every year, i.e., landlords renting corn and bean ground. I can talk numbers with them until I am blue in the face, but that doesn't work. They almost always already know that they are charging below FMV cash rent, so me telling them that they should raise the rent doesn't do much good.

In my experience, the OP is going to have a very difficult time getting his mother to change her mindset on this issue. This likely isn't really about money to her; its about some psychological barrier - e.g., loyalty to the renter, feeling that raising the rent is somehow wrong, a desire to avoid conflict with the renter, or some other non-monetary issue. That is where the OP needs assistance and where the OP needs to focus his discussions with the mother. I imagine any discussions strictly about how the cash rent is too low have left both the OP and the mother frustrated at the end of the discussion.

With that being said, here are a few suggestions. The OP could switch the issue from FMV to his mother's grandchildren, and talk about how much she could impact their lives. As an example, if she can get $8,000 more rent each year and she has 4 grandchildren, talk to her about how she could contribute $2,000 to each grandchild's college fund each year, and the impact that would have on their lives. Or how she would be able to pay to replace the lousy sound system at her church that she has been complaining about for years. In essence, the OP would try to find something meaningful in his mother's life and explain how higher rent could be used to accomplish that.

The OP mentions that she does not want OP involved in negotiations. Maybe that is the psychological barrier - mother wants independence but doesn't have the ability to change. From my standpoint, the best way to figure out FMV rent is to put an ad in the local newspaper and solicit offers. OP could have her go to her attorney and have her attorney assist in placing an ad and soliciting offers. All ad responses go to her or her attorney. OP could tell mother that she does not have to accept any offers the ad generates but she could still rent to the family friend even after soliciting offers. The idea would be to minimize OP's involvement (if that is mother's issue here), and once OP's mother has tangible higher offers, she may be able to make the change. Again, the issue isn't the amount of rent. Everyone, including the mother, agrees it is too low. The issue is how you get the mother over that psychological barrier to change.

Another option would be to identify a trusted non-family member or trusted advisor whom she could talk to about this. She may need to hear the opinion of someone who is not a family member.

As to OP's other options, such as gifting it back to mother, selling, or doing a 1031, I all too often see families who do not get proper professional legal and tax advice before doing the deal, and end up with a poor results. If the family is considering one of these options, a few hours of legal and tax advice will be money well spent. Don't just go to a real estate lawyer. See an elder law attorney regarding the potential Medicaid, estate planning, and gift tax issues surrounding gifting it back to mother. See a tax advisor regarding the tax implications of these options. The life estate adds a twist that I have often seen people trip over.

As to whether to sell, some posters are advising mother to sell, for a variety of reasons. Selling may be the best option for the OP's mother. For what it is worth, in my experience, I have rarely, if ever, run into a person who owned ag land (corn and beans) free and clear, who has regretted holding onto their ground. I have run into many situations where a person has sold the ag land, and five or ten years later regrets doing so.

Best of luck.
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