The Rural Voice, 1993-06, Page 45Advice
withdraw some or all of their equity
from the farm when they retire.
Parents also know the burden that
high debt can place on a farm.
Parents need clear goals of what they
want to do during their retirement and
the level of income they will need.
Continuity of the Farm
Business: Many decisions must be
made to ensure that a viable business
remains after parents have retired.
Some of the most difficult decisions
are those involving people, rather
than just money. Which family
member(s) is/are best equipped to
manage the business in the future?
How will the business be structured?
If the business is very large, can
family members work together in a
partnership or corporation? When
are parents ready to give up control
of decisions and assets? From a
financial perspective, is the farm of
sufficient size and efficiency to be
viable? Will it provide enough
income to provide an adequate living
for retiring parents and younger
growing families?
Financing: Usually the transfer
involves a combination of sales, gifts
and bequests of assets, and often
some family financing is involved.
Family financing can provide more
flexibility than commercial lenders,
but it is essential that parents take
adequate security on loans and on
assets that may be transferred in the
will.
Non -Farming Children: Parents
may also wish to provide some
assistance to other children who are
also trying to establish businesses or
homes and to treat all their children
fairly. It is the prerogative of parents
to determine the fair size and timing
of any gifts to all their children.
Insurance: Insurance becomes a
part of all farm transfer discussions.
It will often play a role in providing
security to families in case of
disability or death, buyout provisions
for partnerships and corporations, and
may provide some cash to make
payments to non -farming children.
Legal Agreements: It is essential
that wills, powers of attorney, domes-
tic contracts, and partnership/share-
holder agreements are consistent and
kept up-to-date. It is important to
consider and plan for the unexpected
involving premature death of children
MIXER
WAGONS
Stationary
Trailer or
Truck Mounted
• 120 cu. ft. to 375 cu. ft.
• Electronic scales
available
• or build to spec.
ROTARY CUTTERS
5 and 6 ft. models
Designed and built to handle
those rugged chores where
dependability counts.
HELM WELDING LTD.
QUAUTY CRAFTMANSHIP BUILT "RIGHT" HERE IN ONTARio
Lucknow, Ont.
(519) 529-7627
JUNE 1993 41
FOR COMPLETE CROP CARE
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CHEMICALS FERTILIZERS
• Custom application for post • Hay and pasture ground
spraying of corn, beans, needs that extra boost
grains, and pasture ground • Spreaders readily available
• Row crop spraying • Terra -Gator
• Dickey -john monitor with • Bulk delivery unit
45' boom width
• Low soil compaction Large supply of chemicals and
• Very accurate fertilizer on hand
HILLS
J
HOWSON & HOWSON LTD.
jBLYTH WINGHAM CARGILL
523-4241 357-2700 366-2225
MIXER
WAGONS
Stationary
Trailer or
Truck Mounted
• 120 cu. ft. to 375 cu. ft.
• Electronic scales
available
• or build to spec.
ROTARY CUTTERS
5 and 6 ft. models
Designed and built to handle
those rugged chores where
dependability counts.
HELM WELDING LTD.
QUAUTY CRAFTMANSHIP BUILT "RIGHT" HERE IN ONTARio
Lucknow, Ont.
(519) 529-7627
JUNE 1993 41