2018 Annual Farmland Seminar in Arizona
2018 Annual Farmland Seminar Flyer Click to enlarge
We are headed back to Arizona for another Farmland Seminar!
By popular demand, we have invited back as our featured speaker Mr. Mark Schultz from Northstar Commodities.
Mark is the Chief Market Analyst for Northstar Commodity. He has over 20 years experience in this position and has been a wonderful asset to our previous seminars.
Besides Mark’s presentation, an exciting program is being planned. We will be addressing current land prices and rents as well as potential issues that can happen when siblings inherit the farm. Good intentions by the parents may turn out not as intended!
We will be hosting the seminar the American Legion Post 35. The date is Tuesday, February 13th.
For more information, including pricing and address, please click on the flyer.
Registration starts 8:30 AM, Seminar 9 AM, Lunch at 12:30.
To register, please call Marissa at 320-523-1050 or email her at firstname.lastname@example.org. Advanced registration is greatly appreciated. Walk-in’s are welcome!
Hope to see you there!
Heller Group Land Co, LLC.
Here at Heller Group, we strive to provide superior service to our clients by recognizing that our fiduciary and ethical responsibility to them is paramount. We are currently seeking goal oriented and self motivated individuals to join our team. Agriculture production training is provided, but prior agriculture or real estate experience is helpful. Positions are mostly commission based, with full time or part time availability, with ownership potential.
If you would more information, please contact us!
Office: (320) 523-1050
Rising real estate taxes and reduced cash rents are causing farm earnings to drop to levels that are creating serious cash flow problems for many landowners. Often retired landowners rely on their net farm income for a major portion of their retirement living. When that shrinks to critical levels, it causes real concerns. Often times today, the net income to the landowner is only about 2 – 2 ½ percent based upon today’s market value for that farmland.
Your first reaction is well, I cannot sell the farm because I have a low cost basis and the capital gains taxes are not an acceptable outcome.
Don’t despair! There is a solution. A farm owner can sell and exchange that equity into other investment grade real estate and receive double the net earnings achieved today from the farmland. Your first reaction is probably, well, I don’t know anything about investing in commercial or investment grade real estate and I don’t have the management skills or enough equity to select good replacement property.
Again, there is an answer for those concerns. There are reputable companies that do all of that for you. Those companies research and acquire several different types of investment grade properties that throw off good earnings. Those properties are professionally leased and managed. They are acquired in a trust entity.
Simply put, you can exchange the equity in your farm for a beneficial interest in one of those trusts tax free, and receive a 5 – 5 ½ percent return currently. Those beneficial interests in such a trust are eligible for a “stepped up basis” upon the death of the owner, just like your farmland. They are liquid, can be bought and sold as the owner needs change.
If you would like to explore possibly doubling the cash earnings for the equity in you farmland, please give us a call today! We will be happy to share this concept with you.
By: Roger Heller, Accredited Farm Manager and Accredited Land Consultant
Its not uncommon for the maker of a Will to name an adult child to be the Personal Representative (PR). That might be a good choice if their temperament, integrity, and skill set allow them to carry out their duties effectively. Your child presumably know your intentions and can readily find the assets that need to be inventoried.
However, if there is bad blood among your children, or if you have a blended family, naming as PR a child who might be part of a future controversy could be a perilous move. Even worse, is naming two rival siblings as “co-personal representatives”. A possible result? Tens of thousands of dollars of the estate, intended to go to the benefit of whom you choose, is squandered in legal fees.
What’s the solution? Choosing a trusted, common-sense friend or relative who doesn’t have a “dog in the fight” might be a sound choice. Another option could be an attorney, financial professional or a bank with a trust department. You might be considering naming an institutional PR (such as a bank or trust company) instead of a flesh-and-blood model. That can carry a high price tag, and in an article I read, it suggests doing that “only when there is severe family dysfunction or you don’t have anyone qualified or who wants to serve”. When using an institutional PR, this also could make sense if there is a blended-family situation.
By choosing outside the immediate family for your PR, parents avoid having to choose between their children so that no one is upset. In essence, you will have given your kids a final gift of having a professional navigate the administration of your estate plan.
Doing research for these blogs was very interesting and informative, not only for me but hopefully for you also. As I mentioned before, these blogs are to be used as a guideline only. It is highly recommended when planning the important function of choosing your Personal Representative, an attorney, accountant or financial advisor should be contacted.
Gary P Hotovec