Buying the farm

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  • October 31, 2012 at 11:25 am #44215
    LongViewFarm
    Participant

    Some of you remember talking about adult adoption at the Annual Gathering this year, and might remember that I have informally adopted my elderly neighbors. Quite a few of you helped me to help them heat their home this year. All of my efforts have been toward the long term goal of acquiring their property and developing it as a farm, educational facility, or B&B. The more I plan, the more it looks like I’ll have a hybrid business plan.

    Yesterday I took a big step towards making this real. My neighbor Ted had finally given me a price and a timeline (March 2013) and we have a purchase and sales agreement in the works. I’ll feel better once it is signed, but it is nice just to be taking quantifiable steps in the right direction. Even after the purchase Ted and Nancy will stay on as renters, so it really is like adoption.

    If anybody’s willing to to share business models, cost benefit analysis for their various on farm activities, that would be great.

    Also, if anybody knows much about (or has connections within) Upper Valley Land Trust I’d like to learn more, as a conservation easement is an option we are considering.

    It feels a bit as though I’d jumped down the rabbit hole from Alice in Wonderland, but I’m very happy and quite excited for this.

    Here’s a picture of the main house, circa 1828 (The large tree in the center of the photo is gone):

    October 31, 2012 at 2:43 pm #75685
    Does’ Leap
    Participant

    Congratulations. If you PM me with your email address, I can send along a copy of our business plan.

    George

    October 31, 2012 at 10:48 pm #75683
    Mark Cowdrey
    Participant

    Congrats & Good Luck Jay. Try to remember to breathe once in a while between now & March!
    Mark

    November 1, 2012 at 10:32 am #75686
    jen judkins
    Participant

    That’s great, Jay.

    I have to say, I really enjoyed listening to Neal talk about generational farming and his thoughts have stayed with me to stew over. Having no children, I have often wondered who would take care of me when I finally get a little addled..you know like in my 90’s. I think its a long way off, but worth thinking about. Also, not coming from a farming family, but wanting to leave my efforts at sustainability on this planet for generations to come, I want to find a way to preserve the form and function of my farm, in stead of having it sold and broken up on my death. Assuming I would have some wisdom to offer some young folk just starting out, I think my plan might be to bring on a young couple or family, while I still have my wits and have them gradually take over the operation. They take care of me when I can no longer work and they get the farm and what ever I can do to get them started. Its an odd business plan, but I like the feel of it. No money changes hands…..just a shift from being the worker to the wisdom of the farm and then the cycle can continue…

    Any thoughts?

    November 1, 2012 at 11:32 am #75681
    Carl Russell
    Moderator

    Land trusts are good for getting outside funding to offset the development value versus the farm use value. This way the owners can get more compensation for their life-time investment, and the new purchaser/farmer can pay a more reasonable price that reflects the value that they want from owning the land. Presumably the easement preventing future development fits into the long term view.

    Another mechanism to consider is Life-estate. This gives the owners some security related to the investment in their home, allowing them full access to the home for as long as they can function there. This CAN reduce purchase price as well, and provides the older couple with a place to live without monthly rental expenses.

    One thing to remember is that the older couple cannot have significant liquid assets IF for some reason they need Medicare. Life-estate is acceptable as they don’t have the cash on hand, rather have a nontransferable asset that provides them with living space. It also requires that the new owner has a familial-like relationship with them as these types of transitions can be somewhat intimate.

    Good luck Jay, it is a worthy endeavor, Carl

    November 1, 2012 at 11:36 am #75684
    Jean
    Participant

    Jen, I would like to introduce you sometime to Bill and Marylou Schmidt in Dummerston. They are doing just what you are talking about. Marylou is in her 80’s and has MS. They own a Christmas Tree farm. Back in the day they were well known Morgan Breeders and I think ML’s son still is.

    Jay, It is great to hear that what you had been planning is coming together. Maybe this is a track for NEAPFD.

    Jean

    March 7, 2013 at 12:29 am #75688
    LongViewFarm
    Participant

    A big step tonight: Ted, Nancy, Lilly, and I met with a lawyer and signed a purchase and sales agreement.

    Closing Sept. 15th. I can’t wait.:D

    March 7, 2013 at 10:46 am #75682
    Carl Russell
    Moderator

    Nice :o…..

    Carl

    March 7, 2013 at 3:30 pm #75687
    dominiquer60
    Moderator

    Nothing makes a person wealthy like having their own piece of land to steward. Congratulations!

    March 8, 2013 at 1:28 am #75689
    Eli
    Participant

    Congratulations, You can’t go wrong buying land. Buying my farm was a lot of work but I have never regretted it once. Good Luck. Eli

    September 17, 2013 at 12:20 pm #81160
    LongViewFarm
    Participant

    I could use some support, as this project is going squiggly at every turn. The latest news is waiting has cost me .75% in interest rate and $35,000. It’s not fun for anybody to realize how the actions of others can have such an impact on one’s plans.

    The worst news is Ted Walker, whom some of you met, passed away in August while I was in France. I miss him, and find his impact everywhere in the woods, so I don’t feel that great a disconnect from him. I am carrying on his work. His health went downhill quickly, so there was no long suffering, and I am glad for that.

    Now I am dealing with his wife, and their lawyer. Neither one has been much fun and I feel the friendship built up over many years disappearing. I believe that Nancy is nearly incapable of making major decisions on her own. She certainly has opinions, but she wants a man (Ted) to tell her what to do. I imagine you can’t empathize with that, but I think it’s part of the lifestyle she grew up in. Add sincere grief to that, and moving becomes very had to contemplate.

    I am being patient, and it is taking its toll. I had hoped to come to DAPFD with a spring in my step, a grin, and plans to expound upon. with every change, plans go by the wayside and doubts pile on. At least there is cleaning out being done, and I may still be able to buy tools and machinery like Ted’d promised. $35k over 30 years is manageable. It’s just a big number to look at from this side.

    The biggest loss is the relationship I used to enjoy with Ted and Nancy.

    The new date for closing is Oct 29th. I can’t hold my breath that long.

    “It’ll be ok in the end. If it’s not ok, it’s not the end.”
    Thanks for listening.

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    September 18, 2013 at 2:40 pm #81169
    Ed Thayer
    Participant

    Keep the faith Jay, Some struggles are worth the wait. Call if you need a hand.

    Ed

    September 18, 2013 at 8:24 pm #81172
    LongViewFarm
    Participant

    Thanks for the note Ed.

    I finally get up the gumption to post on here and then the other (last?) shoe dropped. House and land appraised at $80k below town appraisal. We had based purchase price on the town appraised value.

    The bank is unwilling to lend enough funds to purchase the house. Nancy, whom I’ve done so much for in recent years, is unnegotiable in price. The sale is not going to happen.

    I can’t express my level of frustration.

    September 20, 2013 at 12:50 pm #81180
    Jean
    Participant

    Jay, How awful for you. I know how much you wanted this to happen. I have noticed as my mother ages she is not able to make the most simple decision, she has to run everything by somebody and it is funny how she trusts a man more, she will ask me, then go ask my husband to verify what I said was right.

    Stay positive and something else will come around.

    I do hope to see you at DAPFD.

    Jean

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