The Rural Voice, 1982-12, Page 34FARM ADVICE
Why farm sales do not close
Selling the f<.rm is the biggest sale in a
lifetime. Many would think that the
biggest agony is making the decision on
whether to sell or not to sell. It often turns
out that offering the farm for sale is just
the start of a stressful roller -coaster ride.
A lot of deals get started but never
finish. The reasons for the seller or buyer
backing out should be anticipated. Rela-
tives suddenly have a deep and emotional
attachment to the old homestead. Great
Grandfather cleared the land, it's been
passed down in the family all these
generations and you would be a traitor to
even th;vk of selling it. These same
relatives are not attached to the family
heirloom stones you had to pick by
yourself last spring.
Financing! The buyer makes an offer
conditional on suitable financing. The
seller should realistically assess the
buyer's chances of obtaining funds.
Farms are not bought on dreams and
good intentions. The hope of cheap
mortgage money in a couple of months is
not good enough. A farm too long on the
market is like bread too long on the shelf.
The buyer's financing problem is really
the seller's problem because the buyer can
just walk away having only lost his time.
What about taxes? The seller should
check this out before committing too
much. The news is often bad unless
proper advance tax planning has taken
place. Sometimes sellers back out when
they see how big the tax bite is going to
be.
Changing land values can make deals
go bad. Buyers are mobile. If land prices
are falling, they will chase the best value.
If land prices are rising, sellers reconsider
and hang on.
Lawyers can harden the edges of a deal
so that there is no give and take. A
stalemate develops and the deal stalls.
Other potential buyers see that things are
not progressing and begin to think that
there is something wrong with the farm.
A final reason why deals fail to close is
that personality clashes develop and the
seller digs in his heals and proclaims he
will never let so-and-so ever have the
chance to farm his land.
Colin Reesor, Assoc. Ag. Rep. Bruce
County
Last Will and Testament
of a Farmer
I LEAVE:.
To ml' wife - my overdraft at the
bank. Maybe she can explain it.
To my son - equity on my car. Now
he'll have to go to work to make the
payments.
To my banker - my soul. He has the
mortgage on it anyway.
To my neighbour - my clown suit.
He'll need it if he continues to farm
as he has in the past.
To .C.C. - my unpaid bills. They
took some real chances on me and I
want to do something for them.
To the farm centre - my grain bin. I
was planning to let them take it next
year anyway.
To the farm advisor - 50 bushels of
corn to see if he can hit the high
market. I never did.
To O.M.A.F. - my farm plan. Maybe
they can understand it.
To the junk man - all my machinery.
He's had his eyes on it for years.
To my undertaker - A special
request. I want six implement and
fertilizer dealers for my pallbearers.
They are used to carrying me.
To the weatherman - rain, sleet and
snow for the funeral, please. No
sense in having good weather now.
To the grave digger - don't bother.
The hole I am in should be big
enough.
To the monument maker - set up a jig
for the epitaph, "Here lies a farmer
who has now properly assumed all of
his obligations."
W.S.A. NEWSLETTER
51 IN
sOW3WAY FARMS
•YORLA DRACE
•DUROc
WgWIe Fear and Sons
PERFORMANCE TESTED
Quality swine, performance tested, health
approved gilts and boars from a herd with
very good mothering ability. QS No. 1 York x
Landiace gilts open or bred available on a
regular basis. York, Landrace, Duroc, Duroc
x Hamp boars, also commercial gilts.
Contact
Wayne Fear
veklow MONOWAY FARMS
1 mile east of Highway 4 on Huron Road #16
Brussels Phone 887-6477
PG 34 THE RURAL VOICE/DECEMBER 1982