farmdoc daily’s Post

A common theme with the farmers we work closely with every day is that they want to see their children and grandchildren one day farm the land that they and their parents have farmed. With this dream comes the conversation of farm succession planning. The following article breaks down farm succession planning into phases: https://lnkd.in/gmVrc8CG

Nearly 75% of young investors believe that earning above-average returns on traditional stocks and bonds alone is no longer possible. (Source: Bank of America 2024 Private bank Study of Wealthy Americans) This skepticism is likely driving more Millennial and Gen Z. investors towards alt investments like real estate. So should they consider traditional real estate like a rental property or farmland? One major pro of farmland investments is that they require substantially less oversight than traditional real estate. Especially when you engage and work with a professional farmer. This, in turn, allows you to generate passive rental income while your land asset appreciates. A con is that buying farmland requires a decent amount of upfront capital (typically at least $500k). But farm acreage can be financed. I'm biased as to which one is better, of course. Farmland may not be as top of mind as traditional real estate investments (yet). But I'm hopeful that farmland will continue to become a viable option for more and more investors.

Farms all across America are quietly being sold. Our mailbox is now constantly filled with notices about #retirement farm auctions just like this one. This is because there are not enough new young generation #farmers to replace all the Baby Boomer farmers who are now #retiring or about to #retire. Today most American children don’t want to be farmers or continue the family #farm business, so now farmers all across the United States are quietly selling out to real estate developers, hedge funds, foreign investors or large corporations. Most American farmers now say that they don’t have someone from the next generation to take over the business and continue the family farm. This is just one of many reasons why more and more of our #food is now being imported in from #farms located in countries outside the United States. We should all be very concerned about this trend. This is not just a health issue, but a major national security issue. Your thoughts?

Farm bankruptcies are down. Way down. The Numbers Wisconsin led the nation in Chapter 12 reorganization cases in 2017, 2018, and 2020. But no more. This reduction in filings is not limited to Wisconsin, however. Chart 1, based on data from uscourts.gov, shows Chapter 12 filings nationwide over the last five years. Chart 1: National... Continue Reading #wisconsinlawyer #wisconsinlaw #wislawnow

From 1 September, the long-anticipated updates to the Agricultural Holdings Act 1986 succession rules have come into effect in England and Wales. These changes impact how succession tenancies are determined, with new eligibility suitability tests now in place. If you're an AHA tenant or landlord, it will be crucial to start thinking about these changes now. To help guide you through the process, our latest article has an overview of the headline changes: https://lnkd.in/eyny68Wk

Caring for land is increasingly more important than turning a profit; fewer people are looking to buy farmland this year but that doesn’t mean more are looking to sell; and a higher percentage of people expect land prices and cash rents to remain steady this year. Those are all according to the new LandOwner Annual Land Survey Report. https://lnkd.in/gfbtEVBa

2 of my favorite asset classes: 1️⃣ Farmland... 2️⃣ Commercial Real Estate The goal of farmland ownership varies for some but a necessity for others: • family legacy • support family farm • hedge against inflation • portfolio diversification • long-term steady appreciation Commercial real estate offers: • diversification • recession resistance • an easier path of entry • greater capital appreciation • stronger cash flow & returns • better tax advantages thru depreciation Leveraging the benefits of 1 for the other: Many of us in the Farm Raised investment community share common goals in leveraging the short-term benefits of commercial real estate to position us to shift to ownership in farmland - the long term legacy we wish to leave for family. Learn more about the Farm Raised community in the comments below👇 #agriculture #familyfarm #farmland #legacyplanning #farmraised -------------------------------------- Hello, my name is Mike Downey. I help farmers & ag professionals grow, diversify, and transition their family farm legacies through farm business coaching, written succession plans and diversifying through off-farm real estate.

🌾 𝗦𝗲𝗰𝘂𝗿𝗶𝗻𝗴 𝗬𝗼𝘂𝗿 𝗙𝗮𝗿𝗺’𝘀 𝗟𝗲𝗴𝗮𝗰𝘆 𝗳𝗼𝗿 𝗙𝘂𝘁𝘂𝗿𝗲 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 🌱 Rising land values are presenting unique challenges for family farms, particularly when it comes to succession planning. Ensuring the smooth transfer of assets while preserving the legacy of the family farm requires careful planning and the right structures. My colleague Paul Rogan recently shared his insights with Stock & Land on how trusts can play a pivotal role in navigating these complexities. His expertise highlights the importance of proactive planning to protect family wealth and ensure sustainable growth for the next generation. If you’re passionate about securing the future of your farm, this is a must-read: 𝗧𝗿𝗲𝗻𝗱𝘀 𝘀𝗵𝗼𝘄 𝗮 𝗿𝗶𝘀𝗲 𝗶𝗻 𝗽𝗼𝗽𝘂𝗹𝗮𝗿𝗶𝘁𝘆 𝗼𝗳 𝗹𝗮𝗻𝗱 𝘁𝗿𝘂𝘀𝘁𝘀 𝗳𝗼𝗿 𝗳𝗮𝗿𝗺 𝘀𝘂𝗰𝗰𝗲𝘀𝘀𝗶𝗼𝗻 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 https://lnkd.in/gGNw2ez6 Please feel free to reach out to Paul or myself - or your local RSM Business Adviser - if you’d like to discuss strategies tailored to your unique circumstances. Together, we can work towards building a legacy that lasts. #Agribusiness #SuccessionPlanning #Trusts #FamilyFarms #RSMAustralia #RSMBallarat #thepowerofbeingunderstood

70 percent of Americans have been drying up their financial garden ‼️ Imagine your financial life as a vast garden. Each section represents a different area of financial planning, and like any garden, it requires careful attention, consistent effort, and strategic planning to thrive. 1. **Budgeting: The Soil** – Just as healthy soil is the foundation for a flourishing garden, a well-structured budget is the base for financial success. Without rich soil, plants struggle to grow; without a solid budget, financial goals remain out of reach. 2. **Saving: The Roots** – Savings are like the roots of your financial garden. Strong roots anchor plants and allow them to grow tall. Similarly, a robust savings habit secures your financial foundation, helping you weather life's storms. 3. **Investing: The Seeds** – Investments are the seeds you plant for future growth. Some seeds sprout quickly, while others take time to bear fruit. Just as a gardener selects different seeds for different seasons, a wise investor diversifies to ensure growth across various financial climates. 4. **Insurance: The Fence** – A sturdy fence protects your garden from unexpected threats, just as insurance safeguards your finances from unforeseen risks. Whether it's health, life, or property insurance, having the right coverage ensures that your financial garden remains intact. 5. **Retirement Planning: The Harvest** – Retirement is the harvest you've been working toward. After years of nurturing your financial garden, this is the time to enjoy the fruits of your labor. With careful planning, your harvest can sustain you for years to come. 6. **Estate Planning: The Seeds for Future Generations** – Estate planning is the act of gathering seeds from your harvest to pass on to the next generation. It ensures that your financial wisdom and wealth continue to grow in the gardens of those who come after you. Tend to each area of your financial garden with care and patience, and you'll cultivate a life of abundance and security. 🌱💰 #FinancialPlanning #WealthBuilding #PersonalFinance #Investing #FinancialFreedom