The succession of a family farm can be complex. After the death of a parent, the farm often is left to multiple family members. At the same time, only one or two may have an interest in continuing to farm. Other family members may want their share of the farm sold to receive cash for non-farm uses. Different approaches like leasing land from other siblings may be too costly for the on-farm family member to continue to operate.
We can assist the farm sibling with a cash-out loan to pay off the other siblings. We also help negotiate a fair and equitable division of the estate that recognizes the value of the contribution made by the farm sibling. Janus Ag Finance offers flexible cash-out loans for sibling buyouts and estate financing. This enables the farmer to maintain the business and lifestyle of farming while satisfying other siblings’ inheritances.
When a family member sells the farm property to a related child at a discounted price as part of their estate plan, the appraised value is used to determine the loan amount instead of the purchase price. In some cases, this results in a greater loan amount than the purchased price of the property.