AlB-Lancaster Fanning, Saturday, July 7,1990 Family ALAN STROCK County Agent, Lancaster/Chester When considering to sell your conservation easement, you have several complex family issues to face. This decision could shape your family’s future more than any other decision that you make. The future feasibility of farming, your family’s interest in farming, your retirement needs, the low ered fair market value of your farm, your use of the conservation easement funds, and lastly the tim ing of your decision are a few of the many factors you may consid er. Making an informed decision won’t be easy, but could save yourself and your heirs future problems. Future of Farming The first consideration is the future feasibility of farming at your location. Some factors to think about may be traffic conges tion, availability of farm support services, (feed, supplies, repairs, etc.), local zoning and manure ordinances, ability to use pesti cides and herbicides, closeness to “hostile” homeowners, water quality and availability, and direct marketing opportunities of farm products. Will you have done your heirs any favors if they can’t get adequate and timely farm ser vices, are always fighting with their neighbors about the farm odors, and/or use of spray mater ials, and/or can’t get to the fields because the traffic makes it too dangerous? As we said in prior articles, the Agriculture Security Area protects you from noise complaints due to normal farming practices, but whose farming prac tices are completely normal, and who will define normal? Heirs Desire to Farm If it is quiestionable if any of your heirs desire to farm, it may also be questionable whether you want to restrict your farm land to farm use only. Some of your children may want the farm sold for the top dollar and feel that the farm is their big inheritance. If you do have heirs that want to farm, and you desire to give your heirs the option to farm, the con servation easement cash payment may make estate planning easier by having the cash to compensate PRICE! The first time you use this new shredder pump you II know it s a real Nesseth 1 It s all new it s tough and it features our high-capacity Starburst impeller that rips even the hardest packed material apart to form a smooth homogenized mixture for easy handling Convenient, eacy to maneuver and built to laet. by J-STAR ★ STAR SILOS ★ 717-866-8708 630 E Lincoln Avenue Bob Brubaker 717-484-3138 Myerstown. PA 17067 John .Swop# 717-933-4758 Considerations To Sell Conservation Easement your non-farm children. It will also make it easier for the future farmer to purchase the farm by lowering its fair market value. With the cash you may even be able to gift a portion of the fair market value to your child, to further facilitate the heir’s purch ase of the farm. Family Use of the Farm If you’re thinking about selling your conservation easement it may be the perfect time for a fami ly conference to discuss the issue. You may ask your children if they would like a building lot off the farm at some future date. Lots could be excluded from the land placed in the conservation ease ment and you or your heirs could later build a house on those lots. You may want to ask the follow ing questions: Are the children willing to sacrifice some potential inheritance income to keep the farm in agriculture and/or in the family. At what price would the nonfarm children be satisfied with the farm being sold to their brother or sister. Who wants first option to purchase the farm from the state. The family conference would be a perfect time to discuss your entire estate plan including executor(trix) selection, use of trusts, division of certain personal property, and your retirement goals among other issues. Retirement Needs You have worked long and hard to become a successful farmer. Most farmers finance their retire ment plan through the sale of the farm. Options available to you arc: 1) Sell the farm at fair market val ue, 2) Sell it at agriculture value, probably to a related party, 3) Gift the farm to one of your children, or 4) Let the farm pass to the next generation at your death. Remem ber, whatever you do, don’t forget to have a source of income to meet the standard of living that you desire upon retirement. Lowered Fair Market Value The conservation easement may greatly reduce the farm’s fair market value when it is transferred to the next owner. The 14 farms in Lancaster County sold with con Altar Ottlca Hour* Call: Wye Field Day Features Wagon Tours INC. 148 Brick Church Road Leola, PA 717-656-2016 ABOVE-GROUND MANURE STORAGE TANK WITH SIDE-MOUNT PUMP SI/KS AND LAVOI IS TO VOIR Sl>l ( IM( ATIONS! scrvalion casements in place over the past 4'/ 2 years sold for an aver age of 53,116 an acre, or about SIOOO less than the 1988 Lancas ter County average. This lowered value is advantageous if the farm remains in the family, but may gready reduce the sale price when compared to selling the farm for development. Use of the Conservation Easement Funds Make sure after paying off your lending institution and income taxes that you have enough left to fulfill your wishes. You may want to purchase the neighboring farm, make major building improve ments and/or additions to the farm, or gift funds to your heirs or COLLEGE PARK, Md. Are you interested in learning how to avoid Lyme disease, or curious about performance data on the newest com or soybean varieties? Perhaps you would like a few tips on how modifying your diet can reduce your cancer risk? The answers to these questions and many more await you at the 22nd annual Wye Field Day, set for August 23 at the University of Maryland Agricultural Experi ment Station’s Wye Research and Education Center. The 1990 field day will again feature wagon tours of research on field crops and soils, horticulture, and animal sciences. The field crops tour includes information on new com management systems, com and soybean varieties, nitrate soil testing, and the effects of sludge application on nitrogen utilization. The horitqulture tour highlights new raspberry varieties, using integrated pest management to control insects in sweet com, rais ing asparagus organically, and “fertigation” (delivering fertilizer through your trickle irrigation system). The animal science tour fea tures research involving the Wye Angus herd. In addition to an Our Sales Tool Is A Satisfied Customer - Call Us For Information! WE’RE NOT SATISFIED UNTIL YOU ARE! favorite charity among other desires. You may want to consider donating a portion of your ease ment sale to lower your tax liabili ty and allow the county and/or state to purchase more easements so more land will stay in farming in the county. Timing Even after considering every thing else timing could be the most important factor. If you are aware of your county’s rating sys tem you may desire to wait till your score would be the highest and consequently have the best chance of selection. If the fair market value of your farm has continued to rise, you may also want to wait until, in your opinion, overview of Wye Angus research projects, you can leant how to design a beef cattle handling facil ity, set up vaccination programs, and discover the role that genetics plays in your herd’s ability to resist parasites. There will be three 30-minute morning clinics: “Lyme Disease —How to Deal With It”; “Preven tion and Control of Wildlife Dam age”; and “Alternative Income Opportunities From Your Natural Resources.” The Lyme Disease Clinic will be pesented twice; the other two clinics only once. There are several 4-H youth activities scheduled, beginning in the morning with three concurrent sessions: horticulture judging con test, mock agricultural marketing, and a Wye Angus youth work shop. At 2 p.m. there will be a Wye Angus mock auction for interested youth. The home economics program has morning and afternoon com ponents. Starting at 9:30 a.m., there are four consecutive half hour sessions: “Reducing Your Cancer Risk with Diet”; “Diet and Health Fraud”; “Environmentally Safe Home Cleaning”; and “Sea food Safety.” The first afternoon session, “Food Safety of Fruits and Veget- LET OUR 10 YEARS EXPERIENCE WORK FOR YOU! WE ORIGINATED THE CONCRETE SYSTEM! - WORKING WITH FARMERS WITH CHESAPEAKE BA Y FUNDING - PARTIAL IN-GROUND TANK FEATURING COMMERCIAL CHAIN LINK FENCE (S’ High - SCS Approved) the farm reaches its peak fair market value, and in turn yield you the most money. You may also want to wait to see if any of your children desire to farm. You may also want to wait till the con servation easement would best work into your estate plan. To Summarize Be sure to thoroughly research all your options before you sell your farm’s conservation ease ment. If possible talk to farmers that have sold their easements and leant from their experiences. Con sult your family members and accountant to help make an informed decision that is right for you and your family. ablcs,” begins at 1:30. The last, “Selecting and Grilling Seafood, begins at 2:30. At 11:30 a.m. at Wye Woods, the new Wye Laboratory will be dedicated in honor of Mr. Arthur A. Houghton Jr. A generous sup porter of the University of Mary land, Houghton played a key role in the formation of the Wye Research and education Center. There are four consecutive half hour educational seminars after lunch. They begin at 1:30 with “Agriculture Market Update,” fol lowed by “Agricultural Policy,” “Farmland Preservation,” and “Water Table Management and Environmental Implications.” The afternoon also features tours of the historic formal gar dens at the Wye Plantation Manor House, a crab feast, and exhibits, including an information booth for the College of Agriculture and College of Life Sciences at the University of Maryland at College Park. The Wye Research and Educa tion Center is located near Queen stown on Maryland’s Eastern Shore, 3 'A miles south of U.S. Route 50 on Carmichael-Wye Neck Road. Watch for the Chcs ton Lane Entrance road about Vi mile beyond the Carmichael Methodist Church.
Significant historical Pennsylvania newspapers