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Home My WebLink AboutThe Citizen, 1997-03-19, Page 22PAGE A-2. THE CITIZEN, WEDNESDAY, MARCH 19, 1997. Agriculture '97 Time to start planning farm transfer is now The time to start planning the transfer of your farm is now, televi sion personality Ross Daily told a meeting of farm families in Brus sels recently. Daily, producer and host of This Business of Farming on CKNX and CFPL television, said getting some thing down on paper is a starting place against the time when the farm must be transferred. "Almost nobody is prepared. I haven't got a current will," he admitted, saying his was written in 1983, and a will is only the first step in estate plan ning. Daily told the story of his uncle who farmed on 1,700 acres in Lloy- dminster, Alta, who was suddenly diagnosed with a terminal illness and told he had 10 days to live. He had never discussed the family's finances with his wife. In those final days they had to scurry to deal with how she would cope financial ly at the same time as they dealt with the tragedy of his impending sudden death. People need to learn to retire, Daily said. "Start planning about how you will spend your lime." Financially, are you ready if things go wrong, he asked. What about expensive medical problems? There are many potential person al problems in the transfer of a farm and Daily advised getting pro fessionals involved in setting up the transfer because they aren't emo tionally involved and are interested only in helping get the best for everyone out of the transfer. Daily said he was worried about the atti tude everyone brings to the farm transfer. There can be problems with parents' reluctance to let go, and impatience on the part of chil dren who want to get on with run ning the family farm their way. Daily said he was bothered by the attitude of undeserved entitle ment by the younger generation on some farms, especially when there are off-farm children. "Your farm is yours," he told farm couples. "You don't have to give it. You can sell it and go to Hawaii. I wish farm parents would get more credit for the love they give in the passing of farms to their children." Squabbling among children over who gets what share from the fami ly farm hurts parents, he said. You have to know your children, he says. "Start to make records of what you want to give your chil dren. There is no goodwill among your children once they have access to something you have. I can't believe how quickly families can breakdown." But he warned farmers about encouraging children to want to take over the family farm. He told of one son who at an early age announced he didn't need to contin ue his schooling because all he wanted to do was take over the family farm. The father would do the son a disservice by accepting this and proudly figuring the son would take over the farm. What if the son didn't get an education and, when he was older, decided he did n't really want to farm? "The day you allow a child to stay with you instead of having to go into the world, the day you say 'stay with me', you bind yourself to a promise." And can your son manage the farm under the tremendous changes that are happening to farming, Daily asked. "Farming is going to be very different in the next 10 years." If a farmer doesn't like keeping records, for instance, he or she won't be able to take part in new quality control programs which are becoming essential in marketing to foreign markets. If you turn over the farm to your son, "what's going to happen to you if your son can't run the farm?" He predicted in the next few years more people will leave the farm than in the 1970s. Daily said one successful farmer he knows prepares his children to take over the farm by making them work for someone else for five years to get an outside perspective. There needs to be some way to balance fairness for children who no longer farm with the child who takes over the family farm. While equality is important, if a son has helped on the farm and helped build it up, this changes the bal ance. Estate Planning Other experts at the meeting dealt with ways of solving the kinds of , problems Daily outlined. Peter ’ Benson, a chartered accountant with John, Benson, Inkster and Brighton, discussed estate planning to deal with the tax burdens. "If there is no other message you take from this session it is to start plan ning," he said. Estate planning must deal with meeting the retirement income needs of the parents, the equaliza tion of inheritance for off-farm children and any final taxes, with out leaving the family farm starved for cash. There is a need to provide funds for expansion to meet chang ing needs; there needs to be plan ning to pay off current debt. There is also a learning curve required before the younger generation has the experience to be as efficient as the parent. In taxes, he explained that on your death, you are deemed to have disposed of all your assets and your estate will be taxed on that basis. Farmers have the benefit of a $500,000 capital gains tax exemp tion per person. He urged people to prepare to take advantage of the exemption. Tax on $500,000 is $175,000. For couples, this is a $350,000 saving. There are several techniques available to help reduce the tax bur den from farm partnerships to fami ly trusts to incorporation, and professionals can help farm couples select what is best for them. Wills Joan Krantz-Sippel, a lawyer with Scott, Krantz-Sippcl& Bran- der in London stressed the impor tance of making a will. If your estate is worth more than $200,000, for instance, your spouse won't get the whole estate if you die without a will. A will allows you to direct where your estate goes. If you die without a will, government rules decide how your estate will be divided. Your will can also direct who will look after any dependent children. If you die without a will, your estate will be tied up and your Continued on A-3 CUSTOM GRASS SEEDING BY ATV Frost seeding & hay mixtures. Pasture re-seeding Over 10 years of experience John Hoonaard 523-9445 ___' Please join us today L— 5 March 19 for t McGAVIN'S 5™ ANNUAL INFORMATION & CUSTOMER APPRECIATION DAY 11 a.m. Hardi Sprayer Service Clinic / in conjunction with Cook’s """J & Brussels Agromart [t-x /x X /—J $6,500 3.500 6.500 6,500 .3 from ... .$ .................$ .................$ $ $ $ $ $ $ $ $ $ 6.500 1.500 3.200 1.200 9,900 7.500 3.500 6.500 LS55 Ford 90 hrs, 48" cut, clean ...................... YT 18 Ford hydro lift, 48" cut, clean Sold JD 322 power steering, 48' Deck, snowblower Honda 38-13 water cooled, 38" cut................... Simplicity 42" cut front mount Vicon 281 9' discbines NH 479 9* haybine NH 469 9' haybine . KNSD 6000 trail plow. 6 furrow IHC 700 trail plow, 8 furrow KNSD 12-18", 5 furrow........................... KNSD mounted 3 furrow......................... JD 2600 6 furrow .................................. IHC 710 5 furrow ..................................... DM 45 5 furrow Vari width .................... Case 400 4 furrow 18” ........................... IHC 710 6 furrow, 16” semi-mount. . White 5 furrow ............................ IHC 710 6 furrow 18" .............................. 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Coming $ 40' KNSD SBC double rolling harrows ................................$ 13,900 36' Wil-Rich w/leveling bar Coming $ 15 1/2* Ford 208 w/harrows....................................................$ 24 1/2' IHC w/harrows................................................................$ 12* Glencoe $ Farm King 72” finish ................................................................$ 1,000 Douglas 60” finish .....................................................................$ 1,100 Deutz 48” finish ..........................................................................$ 700 JD 5' rotary cutter.........................................................................$ 750 Helm 72‘ rotary cutter..................................................................$ 650 McConnell hydraulic boom mower.........................................$ 10,000 Ford 5000 2WD, cab, "new clutch” Ford 3930 4 WD, Idr, 150 hours, as new Ford 8670 4WD, super steer, clean, 500 hrs Ford 6700 2WE. cab, clean Sold Deutz D6.5 4WC 122 hp, cab ................... White 700 2WD, cab....................................... JD 3130 2WD, clean ....................................... Case 970 2WD, cab.......................................... Leyland 482 4WD, turbo ................................ Leyland 262 2WD, w'cab................................ Leyland 344 Idr................................................. Massey 65 gas, freeman loader.................... David Brown 1200 cab clean unit .......... Oliver 2050 2WD, heat houser, nice............ ACWD45ldr...................................................... AC WD very clean............................................ 9N Ford sharp, new tires................................ 50 Cockshutt diesel Customer Unit . .. Call Coming . $13,500 ... $23,000 ............$ 8,500 $13,500 $ 8,500 ............$14,900 6,000 5,000 4,750 7.500 9.800 2.800 1.500 3,200 3,000 LAWN & GARDEN $ $ $ $ $ CULTIVATORS Several 3 pth KNSD in stock 18.5 Glencoe w/3 bar harrow 20' IHC.............................................. $ 3,500 14' Kewanee . . $ 1,400 10' White 252 ..................................................................... . $ 1,200 12' IHC $ 1,200 11 1/2' Krause....................................$ 1,000 14' Massey $ 1,400 14* JD...................................................................................$ 1,200 SPRAYERS Hardi TR-300 35' boom, foam markers . . . .2 from $ 3,500 Hardi TR-500 50' boom markers ....................2 from $ 5,800 George White 500 gal. Vicon Boom...........................$ 3,500 Calsa 500 gal....................................................................S 2,500 Continental 200 gal, 27* boom, hydraulic pump .................................................................................... $ 900 Several 3pth in slock........................................................Call SPREADERS JD 780 TA hydro push...................................................$ 6,000 NJ 244 TAUB. EG ... ..................................$ 4,500 NH 307 side delivery spreader, TA .............................$ 8,500 NH 305 side delivery spreader ..................................$ 6,000 NH 791 2 from $ 3,000 PACKERS 12Tumco crowfoot...........................................................$ 1,200 11* Turnco crowfoot $ 1,000 12* Bear Cat packer w/2-6' pups ................................$ 2,400 3* JD crowfoot packers 2.................................................$ 675 25* Brillion pulvi mulcher ................................................ .$ 9,000 14* Farmhand w/transport "as new” Coming soon $ 4,000 HAYBINES/BALEF JD 1360 discbine 10' ................. NH 499 12' hydroswing . . Vicon 1211 electric conlrols . Vicon 1210 roqnd baler ............ IHC 2400 round baler................. NJ 484 round baler .................... NH 315 w/thrower, customer unit NH 310 super sweep .................... JD 336 baler NH 144 hay inverter.................... Call .2 from $ 3,500 .................S 3,900 .......................$ 4,000 FORAGE HARVESTERS 1 NH 892 electric controls ................. .................$8,500 NH 890 electric controls ...............................................$6,000 NH717 ...........................................................................$1,500 JD 3970 w/hay pickup .................................................$17,200 JD 3800 w/hay pickip, 2 row com head.................$2,400 NH 770 rebuilt................................................................$4,200 Several used com heads and hay pickups in stock AUGERS Westfield 10" x 71* .............................................................$3,800 Allied 7x 51* BD ...............................................$1,200 Allied 6x51* .....................................................................s 900 Hutchison 6 x 51*..............................................................$450 PLOWS $ 13,900 .........................Coming $ $ $ S Allis 13 shank chisel plow $2,300 IHC 700 7 x 18“ plow $5,500 Kvemeland 3x14 mounted $650 IHC 535 3 turrow .....................................$900 IHC 4 x 14 semi-mount ....$1,000 Massey 800 4 furrow semi-mount ....$1,200 I stalk cho Hliw Lundell 15' stak chopper ........................$3,500 Brillion 15* stak chopper ..........................$8,000 6 Used forage blowers in stock .......................................................Call L760 Dion w/Horst wagon "1 year old” L760 Dion w/Martin wagons rebuilt...............$7,500 ... .3 from ..$3*000 NH#8 crop carriers ... .2 from .$2,500 Gehl w/running gear................................S 4,000 Dion RH rebuilt box ................................$3,000 BALE HANDLERS NH 1034 bale stacker wagon ............$9,500 NH 1012 bate stacker wagon ...............$3,800 Round bate trailer, 30 bale capacity .$2,900 Wagons 18* flat racks w/wagons 3 from .$600 FINISH MOWERS & CUTTERS Befco 8 wheel v rake w/hyd. cart .........................................$ 2,800 Miler Pro 1100 rake, "as new”..............................................$ 5,500 Deutz Fahr rake..........................................................................$ 2,500 Fransgard 5100 tedder ...................... $ 4,500 Massey roller bar rake .............................................................$ 500 IHC roller bar rake ....................................................................$ 700 McGAVIN FARM EQUIPMENT Walton, Ont. (519) 887-6365 ~ (519) 527-0245 "Your short-line specialists" Established in 1936 SERVICE WITH A SMILE