A2B-Lancaster Farming, Saturday, March 24,2001
Pass On The Family
(Continued from Page A 27)
drop out of the partnership.”
Hershey believes parents
should do everything possible to
enable their children to succeed.
He said, “When we leave this
earth the only thing we leave
are our children that money
can’t replace.”
“My father never really gave
money, but he gave me opportu
nity,” said BUI Beam, Elverson
farmer. He praised his parents
and two brothers for setting up a
plan that enabled him and his
wife Robin to take over the fami
ly farm.
The transition began in 1990,
with Beam taking over the crops
and hog operation. Last winter,
he completed the purchase of the
famUy farm. During the interim
years, he was able to purchase
some apartment buildings and
additional acreage
Beam said the family agree
ment was set up in such a way
that it enabled his father to seU
his land, get out of debt, and buy
a nice retirement place in Flori
da. The legal agreement also pro
vides financially for Beam’s two
brothers to receive a fair share
upon the parents’ death.
“We hired an agent to ap
praise the farm, and I paid that
price with no gifting,” Beam said
of the transaction.
The purchase was financed
with the help of FmHA (now
Farm Service Agency) that re
quired him to keep records,
make projections, and budget.
These requirements greatly bene
fitted him, and later on, enabled
him to switch the loan to Farm
Credit or to a local bank, a re
quirement of FSA.
Buy the Beat Steel Jtoefiny Si Siding
i w
Grandrib 3®PLUS
Buy the Best from
A company that only sells Quality.
All this adds ui
Grandrib 3® PLUS is backed by an industry leading:
35 Year Sidewall & 30 Year Roof Paint Warranty
25 Year Sidewall Corrosion Warranty
20 Year Roofing Corrosion Warranty
10 Year Edge Rust Warranty
Complete Building Packages, Trusses And Glue-Laminated Timbers
717-866-6581
761 E. Linden St.
Richland, PA 17087
Beam’s parents carry the first
lien on the farm. Beam said,
“I’m not out of debt. My story is
undergoing.”
Bowlan said. “Ninety percent
of farm transfer problems are
caused by poor communication.
It is important to include all
spouses in discussions from the
beginning stages of transitioning.
Assume nothing. Get aU agree
ments in writing. Expectations of
each famUy member should be
clearly stated. Utilize the best
legal sources and accountants
possible. Measure progress and
review what is written, often.”
Although guidelines exist that
enable farm families to save
taxes and ease transition, the
workshop reinforced that no set
rules apply in every situation.
Decision-making in every inci
dent is unique to each fanuly’s
situation. Issues to take into con
sideration are the famUy’s strong
ties to the land and farm, and the
willingness of each family mem
ber to look at the transition from
several angles.
For some, preservation of
farming as a way of life is more
important than receiving top dol
lar.
In some instances, a multi
family agreement is set up. These
need to be set up as a business to
make it work and include a poli
cy of the expectations for the
next generation. Multiple owners
greatly complicate decisions
about transfer. Options should be
discussed long before the transfer
becomes effective.
It is important that the next
generation has time to gain expe
rience in management by gradu-
t 0...
RIGIDPLY...
Farm
Tim Fritz, multicounty
farm management agent,
stresses the importance of
a business plan.
ally transferring responsibility
for the farm operation.
Bowlan believes it is important
that children advance their edu
cation and work in another field
or in the same field but for an
other farm operation.
“This enables the child to
choose farming because they
want to do so rather than be
cause they have no other op
tion,” Bowlan said.
“Farming is tough business.
We need our brightest and best.
The more experience gained, the
better prepared,” she said.
“Talk out differences. Farm
families are typically closed
mouth and busy. It’s hard to get
them to talk,” Bowlan said.
Tim Fritz, multicounty farm
management agent for southeast
ern Pennsylvania, approached
the subject of business planning.
Fritz grew up on a dairy farm
and was part of a family partner-
, (
* nPimm •
JH'l iff
-' smt
Metal
Warranty
10 Layers
Protection
VptoSO%
, * V
■
29 Gauge ,
■ 'fatir
[ : /.
■ IfSSnBSSSI
Ifull. .
301-334-3977
1283 Joni Miller Rd.
Oakland, MD 21550
ship that dissolved, in part, Fritz
said, because they didn’t plan
properly.
Through his experience, Fritz
determined that three compo
nents are needed for a solid
farming operation: production,
business management, and mar
keting.
Fritz stressed the importance
of a business plan. “If it doesn’t
work on paper, it probably won’t
work in reality,” he said.
Estate planning and legal is
sues in a farm transfer were ad
dressed by James R. Clark, attor
ney with the Lancaster County
law firm of James Clark & Asso
ciates.
One of the questions farmers
often ask is how much lawyer
fees are charged to settle estates.
Clark said a typical fee is five
percent of the estate’s value, but
second quotes are recommended.
A living trust still requires law
yer’s fees, and it is easier to settle
, estates without trusts.
A session on financing re
vealed that special loans with
“My father never really gave me money, he gave me
opportunity,” Beam said. He and his wife Robin are grate
ful for the opportunity to buy the family farm in Elverson.
Ever called “911“ to rescue your dairy ration from
poor quality forage? Why settle for expensive and
marginally successful “remedies’ for a cow’s diet?
Practice “emergency prevention!”
; - LP ""'l
■.HI Renaissance we perform extensive, ongoing
evaluation of forage quality on our seed varieties
under different management conditions. We
KNOW what works and why! Our nutritional
consultants will suggest seed varieties that can
improve your feeding program and forage
management tips that can help eliminate those
‘frantic forage” phone calls!
TAKE ADVANTAGE OF THE RENAISSANCE PROGRAM
& ‘Result* f
□ Excellent starch and fiber digestibility for improved results
a Outstanding yield potential on varieties to meet your needs
□ Tried and tested hybrids that perform consistently
□ Advanced lab analysis procedures
a Expert advice on preserving forages
□ Crop management and agronomic consultation
a Kemin & Biotal forage preservatives - the very best!
MYCOGEN® ♦ WOLF RIVER VALLEY® ♦ AGRI-CULVER®
Choices based on nutrition and agronomics.
Renaissance-approved hybrids.. .tested for digestibility
Get the facts. Call today.
-iCCfr 1-800-346-3649
4BIiIWL Roaring Spring, PA
www rennut com aS|
IKMISSUnCC MUTfIITIOM, INC Sty
Renaissance. .
low interest rates are available
for beginning farmers. Three rep
resentatives shared potential
help their organizations offer.
Speakers included Marietta
Myers, Next Generation Loan
Program; Gerald Phillips, Mid-
Atlantic Farm Credit; and James
Tomanellil, Farm Service Agen
cy.
Farmland Preservation Pro
grams were explained by June
Mengel, Lancaster County Ag
Preserve Board and Heidi Schel
lenger, Lancaster Farmland
Trust. The differences between
these two organizations and the
ways they can benefit estate
planning have been addressed in
previous articles in this paper.
Farmers are encouraged to con
tact these organizations to see
how these programs could bene
fit them as the financial benefit is
dependent among many different
issues.
For more information on farm
transferrals or workshops, con
tact Farm Link, 2708-A N. Cole
brook Rd., Manheim, PA 17545.
Ph0ne:(717)664-7077.
QUICK . . .
DIAL 911!!!
a nama In quality hybrids.