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Going part time so I can farm full time


IH Blood 1206
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Whatever you do get everything in writing , many copies and preferably notarized . I am talking about purchase agreements. Land rental contracts or purchase contracts. Basically anything you do with family do not trust them. In laws get involved and usually they are leaches.  I am not being cynical but when there are more than 1 child it usually goes bad sometimes down the road. Good luck and best of wishes on you new venture. The health ins is the worst part to fund every month. Just seriously whatever you buy from family get a signed receipt save it forever, save canceled check of every payment or copy of bank records and any future sale or gift decisions get in writing and notarized and send copies to every one involved after completed.

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Everything thing dale560 said!!!

If everyone is upfront and know what to expect and in a contract it makes life so much easier. Seen to many handshake or my word deals go very bad!!! Insurance is very tough but maybe you can find a part time job that they would offer it to you, maybe you pay for it but still probably cheaper that the open market. Good luck and your lucky to have the opportunity.

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20 minutes ago, dale560 said:

Whatever you do get everything in writing , many copies and preferably notarized . I am talking about purchase agreements. Land rental contracts or purchase contracts. Basically anything you do with family do not trust them. In laws get involved and usually they are leaches.  I am not being cynical but when there are more than 1 child it usually goes bad sometimes down the road. Good luck and best of wishes on you new venture. The health ins is the worst part to fund every month. Just seriously whatever you buy from family get a signed receipt save it forever, save canceled check of every payment or copy of bank records and any future sale or gift decisions get in writing and notarized and send copies to every one involved after completed.

I’d would further Dale’s thought to include that everyone involved asks questions about anything they find unclear about the agreement.  Nothing worse than having to pay lawyers to resettle what was already agreed upon.

things like what happens if someone dies, who owns equipment, and any restrictions on what can/can’t be done with farm.   I’m sure there are other things specific to your situation.

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Love this. Wish I would have been in the same position  when I was in my 30's.  

Farming full time is a business.  Has many benefits unlike other businesses, and also many requirements other businesses  do not.  Full commitment.  

I had an old man who was a successful  farmer tell me one similarity. if you're  not growing the business. its dying.  Can't sit on status quo. Just doesn't work.  

Try new things. Involve family when ever you can. Enjoy life. Dont ever regret. Just learn.

How's that for advice?  Wish I would have listened.

 

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18 minutes ago, dale560 said:

Whatever you do get everything in writing , many copies and preferably notarized . I am talking about purchase agreements. Land rental contracts or purchase contracts. Basically anything you do with family do not trust them. In laws get involved and usually they are leaches.  I am not being cynical but when there are more than 1 child it usually goes bad sometimes down the road. Good luck and best of wishes on you new venture. The health ins is the worst part to fund every month. Just seriously whatever you buy from family get a signed receipt save it forever, save canceled check of every payment or copy of bank records and any future sale or gift decisions get in writing and notarized and send copies to every one involved after completed.

Seriously LISTEN to this advice ^^^!

Every-time something feels like family is ok with this, it will change over time! IF your long term plan includes purchasing ANY family assets, plan on the costs and if you’re purchasing from your parents or siblings. 
Factor in ALL improvements to that value, and IF it will be used against you in the final sale. Any buildings or facilities that are improved over the rental values, any machinery updates or replacements, need to have a CLEAR chain of ownership and or value added to these assets.

Document everything, EVERY TIME you do something. Yes, it’s going to feel foolish and not worth the effort, trust me, this could make your dream a reality or by not doing it turn that dream into a nightmare! 
Remember asset appreciation has the ability to work against you IF you aren’t prepared! BTDT! What starts out as a $10,000 obligation today will compound itself into a $100,000 obligation, OR WORSE, in 20 years! 
Keep your operating expenses in check, and prepare for double digit inflation!!! 
 

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3 hours ago, IH Blood 1206 said:

In my mid 30's and am leaving a decent job to farm full time. Have an opportunity to keep the family farm going. Have some anxiety about health insurance, etc.  Any advice from guys that have been down this road?  Family has a great relationship and will be a smooth transition on that end. 

I don’t want to scare you just give you honest up front advice in family situations. I applaud you for the chance and ability to get started. Just giving hard advice. I read your 35 so you have a family ( wife and kids)? Whatever you do they are your first priority. I guess your parents are retirement age? Not knowing your situation , but agriculture is capital intensive ( land ,machinery, inputs) so I am guessing to get started the older partners will help you establish. This is great and how most families want it. But a word of advice have a hard conversation about being able to purchase assets. Include how , when and how much. You don’t want to support your parents until they ready to sell 20 or 30 years from now. By that time stuff changes and you are stuck with the expenses and no appreciation on assets. This commonly happens. If elders can’t discuss a succession plan now they won’t 10 years from now. Do not count on wills or trusts to protect your rights to purchase or acquire assets. Wills are thrown out at any discretion now and trusts are almost always returned to grantors if fought over.  I hope and wish you the most successful operation and life of farming. The best advice I can give you is do succession planning immediately, have it drawn up by a professional and keep all copies of everything

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6 minutes ago, dale560 said:

I don’t want to scare you just give you honest up front advice in family situations. I applaud you for the chance and ability to get started. Just giving hard advice. I read your 35 so you have a family ( wife and kids)? Whatever you do they are your first priority. I guess your parents are retirement age? Not knowing your situation , but agriculture is capital intensive ( land ,machinery, inputs) so I am guessing to get started the older partners will help you establish. This is great and how most families want it. But a word of advice have a hard conversation about being able to purchase assets. Include how , when and how much. You don’t want to support your parents until they ready to sell 20 or 30 years from now. By that time stuff changes and you are stuck with the expenses and no appreciation on assets. This commonly happens. If elders can’t discuss a succession plan now they won’t 10 years from now. Do not count on wills or trusts to protect your rights to purchase or acquire assets. Wills are thrown out at any discretion now and trusts are almost always returned to grantors if fought over.  I hope and wish you the most successful operation and life of farming. The best advice I can give you is do succession planning immediately, have it drawn up by a professional and keep all copies of everything

AFTER YOU build it they will come

do succession planning immediately, have it drawn up by a professional and keep all copies of everything.

I don't have everything I paid for but I do have everything I paid for twice

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Look up samaritans purse.  Works great and is fair price.

Serious.....listen to the notes above.  Make sure everyone is clear clear and doc.  You nevvvvvveeerrrr know what's possible till $ and blood are involved

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2 minutes ago, junkandcattle said:

AFTER YOU build it they will come

do succession planning immediately, have it drawn up by a professional and keep all copies of everything.

I don't have everything I paid for but I do have everything I paid for twice

My neighbor who passed away gave me some advice a few years ago. 3 things he told me

1. don’t get divorced if you don’t have to. He was divorced and found a good gal younger than him and had a happy life for 30 years. But he told me do as I say not as I do.

2 . He told me women get crazy as they get older. don’t know for sure but I suspect this is true

3 . He told me everything you have you will pay for 2 or 3 times over in life. He and his brother bought land together  , 400 acres in 1970, his brother committed suicide, so his parents got that half. He got divorced a bit later so his wife got paid half of his half. He then owed child support so he ended up deeding her a lake cabin for 10,000 in 1980. She sold it for 30,000. He bought a like cabin back in 2015 for 150,000. He told me whatever you do this will come true you have to pay for everything you love dearly.

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Well for sure I was young once,quit a high paying job because all wanted to do was farm. I was wishing my life away,couldn't wait till the weekends came.  I then could farm for two days without leaving.Then I built a barn ,sold the beef cows and started milking.I milked for 15 years, raised the kids while my wife worked away.I was the stay at home dad,Mr Mom  with full time responsibilities of all dairy and crop work 7 DAYS a week plus watching the youngest before she got in school.I got to go to all their plays during the day.Teacher conferences,Dr appts.were my responsibility. Kids never had to go to school sick or a sitter. Too little money too many bills.I sold the cows years ago when I was getting tired and kids were getting grown.Kept the farm bounced around from job to career back to job again and sometimes think man,I shoulda kept that high paying job 30 years ago.

But I really NEVER regret doing it.It is what I wanted to do. I would not have been happy otherwise. I loved my cows and learned SO MUCH.

You gotta follow your heart win or lose. Farming is a young  man's game to start up in,the younger the better.

Just be fearless and SMART.

 

.

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All good advice above,  30 years ago I took part of my wife's family farm on a hand shake, It didn't work out but I did not get hurt , was able to buy the farm I have now.

Remember you can pick your friends but you can't pick your family,  No mater how it go's there is alwise someone that gets butt hurt

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1 hour ago, Rainman said:

Best of luck!

May want to check Samaritan Ministries.org  as a cost share,

instead of health insurance .

I have no experience with Samaritan Ministiries, but I have been a member of MediShare for 6 or 7 years. They are a cost sharing organization. Much cheaper than insurance. However, if you have a hospital stay, be ready for the crap to hit the fan. I’m still trying to settle bills from 18 months ago. I would NOT recommend them to anyone!!

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1 hour ago, ihrondiesel said:

I have no experience with Samaritan Ministiries, but I have been a member of MediShare for 6 or 7 years. They are a cost sharing organization. Much cheaper than insurance. However, if you have a hospital stay, be ready for the crap to hit the fan. I’m still trying to settle bills from 18 months ago. I would NOT recommend them to anyone!!

The city job here pays for the hospital stay after first day. This is the stuff not covered by ins. Hate having another job but insurance was just killing us. Wife got part of her blue cross paid for but we had to add 2200 a month or more into it. Plus the 10 % not paid for

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Don't you have that backwards? I always thought you had to WORK FULL time so you could FARM PART time. But at least you're young enough to enjoy it. I applaud your giving it a go. Any day playing inna dirt is a good day..... Like other have said though Do your homework and get things clear before you commit to anything. And best of luck to you!

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