The Rural Voice, 1980-09, Page 18Start the Season
Right
with
• We'II inspect your equipment thoroughly
• We'II repair any parts or components needing
repair
• We'II replace those parts likely to fail during
the coming season
• We'II lubricate your equipment and make all
needed adjustments for top operating effi-
ciency
t• iP.
..your best defense against
downtime.
INTERNATIONAL°
AGRICULTURAL
EQUIPMENT
1
SFE
STRATFORD
FARM
EQUIPMENT LTD.
P.O. BOX 232, HURON ROAD WEST OF STRATFORD
TELEPHONE 519-393-6162 N5A 6T1
HOURS:
Monday -Friday 8:00 a.m.-5:30 p.m.
Saturday 8:00 a.m.-12 noon
PG. 18 THE RURAL VOICE18EPTEMSER 11100
FARM MANAGEMENT
Selling the farm
BY GARY STEPHENS, Assoc. Ag. Rep.
One recent farm call regarding the sale of a farm property
turned out to be very refreshing in these days of escalating
prices, uncertainty and gloom. The property owners have lived a
long, satisfying life on the farm and have decided to sell. There
are no children or family interested in farming and the land has
been rented to a neighbour in recent years.
Because of the proximity of the farm to a populated area, there
are both farmers and speculators interested in the property. One
young farmer who is developing his own farm business was
interested in the property and another, more speculative person,
who probably gave agricultural interests a much lower priority,
was also interested, and offering more money.
Legal representatives discouraged selling the farm at a lower
price with the explanation that their responsibility would be to
conduct the sale of the farm in the manner which would be best
for his clients. He obviously felt that getting the most dollars
possible would be the only consideration in determining what
was best for the owners. The owners, however, had concerns
other than money as well.
The owners were very aware and concerned about the
importance of farmers in our country, the many uncertainties
they face and the heavy financial burden a young farmer must
carry.
The property owners have spent their whole life on the farm,
living in a very modest manner. They have no desire for
additional material things and are not physically able to travel.
They have researched the cost of "home" care and have decided
that the proceeds from the sale plus pensions and savings will be
more than adequate to provide a comfortable secure retirement
and any special care that may be required.
After evaluating both alternatives completely, the owners
have decided that in their minds the best choice for them would
be to sell to the young farmer. They decided that the dollar
difference between the two offers would be more than
compensated for by the personal satisfaction of knowing that the
farm will continue to be a productive farm operated by a person
they know and have confidence in. They also feel good about
helping the young farmer expand his business into a more
viable operation without taking on a debt which could become
crippling.
I am sure many young farmers would like to meet a person like
this who has a farm for sale and many retiring farmers would like
to be able to give a young farmer a break as well. However,
before anyone either offers their farm for sale at a "bargain
price" or offers to buy a farm at a "bargain price" they must
consider the consequences.
A person retiring from active farming should be sure he will
have adequate proceeds from the sale to maintain the lifestyle
desired until death, giving serious consideration to things such
as general living expenses, inflation and possible special care.
In determining the net proceeds from the sale one must consider
capital gains tax, legal expenses, etc.
For a purchaser, although the proposal may at first appear to
be a bargain or a once in a lifetime opportunity, he too should
give careful consideration and do a lot of pencil work before
making an offer. Unless one can make a significant down
payment from cash reserves, calculations may show that even at
a modest price the additional land may not generate the cash
flow required to repay the increased debt. For someone who is
already stretching their budget, this "bargain" could lead to
serious financial difficulties.