revkevsdi Posted August 14, 2018 Share Posted August 14, 2018 2 minutes ago, GGNHL said: We have consultants that help out with estate planning and generational transfers here. A lot of times the parents decide to just give the one most interested in actually farm the majority ownership of everything especially if the other kids find off farm employment. The other kids tend to be pretty butthurt over it, but usually the idea is the cash assets and retirement funds will go to those kids (assuming any is left) when the parents pass. I have seen pretty bad scenarios though that cause farms to have to sell out cause no one can agree or it gets dragged through 6 years of litigation because the parents generation didn't have any sort of will at all... Over 150 years they dodged that bullet how many times? How many farms have a 150 year history? Personally I’m not holding out any hope for a 3rd generation with our bsusness. My brother and my kids are too far apart in age. I’d rather sell the manufacturing business and help them if they want their own business. They’ll have more of a buy in to that imo. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 14, 2018 Share Posted August 14, 2018 1 minute ago, revkevsdi said: Over 150 years they dodged that bullet how many times? How many farms have a 150 year history? Personally I’m not holding out any hope for a 3rd generation with our bsusness. My brother and my kids are too far apart in age. I’d rather sell the manufacturing business and help them if they want their own business. They’ll have more of a buy in to that imo. How far apart are you in age with your brother? Farms (Canada) can stack their capital gains exemptions when passing to next generation, not like corps, otherwise most would not last long. Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted August 14, 2018 Share Posted August 14, 2018 1 minute ago, ArcticCrusher said: How far apart are you in age with your brother? Farms (Canada) can stack their capital gains exemptions when passing to next generation, not like corps, otherwise most would not last long. What’s the difference in the farm tax free capital gains and small business? Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 14, 2018 Share Posted August 14, 2018 16 minutes ago, revkevsdi said: I’m surprised you haven’t told reconfarmer that his business is negative growth. In obviously doesn’t have an average growth of 10% per year. I’d be interested to see how that metric applies to his family business. Personally I think they’ve done an amazing job of defying the odds for any business. Not talking about farmers, but if a corp can't grow by more than 10%, one needs to revisit the business plan. Esp after operating for decades. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 14, 2018 Share Posted August 14, 2018 2 minutes ago, revkevsdi said: What’s the difference in the farm tax free capital gains and small business? https://www.fin.gc.ca/n17/data/17-100_1-eng.asp Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted August 14, 2018 Share Posted August 14, 2018 Just now, ArcticCrusher said: Not talking about farmers, but if a corp can't grow by more than 10%, one needs to revisit the business plan. Esp after operating for decades. A farm is a business. So why not apply that same metric? They start 170 years ago but were in the us 150 years ago. If they started with 100 acres. How many acres should they be now using your 10% model. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 14, 2018 Share Posted August 14, 2018 4 minutes ago, revkevsdi said: A farm is a business. So why not apply that same metric? They start 170 years ago but were in the us 150 years ago. If they started with 100 acres. How many acres should they be now using your 10% model. Seems to me most are waiting for some white knight developer to buy them out. 10% is what I expect to make in the markets, the business does much better. Quote Link to comment Share on other sites More sharing options...
Dave Posted August 14, 2018 Share Posted August 14, 2018 3 minutes ago, ArcticCrusher said: Seems to me most are waiting for some white knight developer to buy them out. 10% is what I expect to make in the markets, the business does much better. My relatives on my mothers side where tobacco farmers in southwestern ont. They all took the buyouts....some took the 1st one....some the 2nd... All glad they did. Quote Link to comment Share on other sites More sharing options...
GGNHL Posted August 14, 2018 Share Posted August 14, 2018 17 minutes ago, revkevsdi said: Over 150 years they dodged that bullet how many times? How many farms have a 150 year history? Personally I’m not holding out any hope for a 3rd generation with our bsusness. My brother and my kids are too far apart in age. I’d rather sell the manufacturing business and help them if they want their own business. They’ll have more of a buy in to that imo. Very few make it that long for sure, @racinfarmer is an exception to the rule for sure, especially with there being just less and less individual farms every year and more and more consolidation. Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted August 14, 2018 Share Posted August 14, 2018 1 hour ago, ArcticCrusher said: https://www.fin.gc.ca/n17/data/17-100_1-eng.asp 1 hour ago, ArcticCrusher said: Seems to me most are waiting for some white knight developer to buy them out. 10% is what I expect to make in the markets, the business does much better. You seem to be very judgemental about my business. I thought you’d put the same scrutiny to his business. Are you saying farms aren’t a business? wouldnt your link showing the better tax treatment mean that farms through the generations would be able to do better than 10% Quote Link to comment Share on other sites More sharing options...
Zambroski Posted August 14, 2018 Share Posted August 14, 2018 SMH Quote Link to comment Share on other sites More sharing options...
frenchy Posted August 14, 2018 Share Posted August 14, 2018 1 hour ago, DAVE said: My relatives on my mothers side where tobacco farmers in southwestern ont. They all took the buyouts....some took the 1st one....some the 2nd... All glad they did. 3rd/4th generation farmers around here are all baller status now. Mind you these are dairy farms where their profit/prices are protected so a little different but still.... Quote Link to comment Share on other sites More sharing options...
Dave Posted August 14, 2018 Share Posted August 14, 2018 Just now, frenchy said: 3rd/4th generation farmers around here are all baller status now. Mind you these are dairy farms where their profit/prices are protected so a little different but still.... The shrinking quotas hurt the tobacco farmers. Apparently they lifted those a few yrs back....i dunno. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 14, 2018 Share Posted August 14, 2018 15 minutes ago, revkevsdi said: You seem to be very judgemental about my business. I thought you’d put the same scrutiny to his business. Are you saying farms aren’t a business? wouldnt your link showing the better tax treatment mean that farms through the generations would be able to do better than 10% No offense, but unlike you he is not a dick. Quote Link to comment Share on other sites More sharing options...
Dave Posted August 14, 2018 Share Posted August 14, 2018 1 hour ago, ArcticCrusher said: No offense, but unlike you he is not a dick. That in itself goes a long way! Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted August 14, 2018 Share Posted August 14, 2018 2 hours ago, ArcticCrusher said: No offense, but unlike you he is not a dick. You would still think your 10% rule would apply. Maybe you just make shit up. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 14, 2018 Share Posted August 14, 2018 27 minutes ago, revkevsdi said: You would still think your 10% rule would apply. Maybe you just make shit up. I would cash out and make it apply. Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted August 14, 2018 Share Posted August 14, 2018 9 minutes ago, ArcticCrusher said: I would cash out and make it apply. Not much an answer. But then again you are basing your investment skills on the longest running bull market. I wouldn’t expect any better Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted August 14, 2018 Share Posted August 14, 2018 12 minutes ago, revkevsdi said: Not much an answer. But then again you are basing your investment skills on the longest running bull market. I wouldn’t expect any better SBYL. Quote Link to comment Share on other sites More sharing options...
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