I have a grave concern that I don't believe that many other people share. I am troubled that with the increasing frequency our agricultural properties are leaving the control of the families who had historically farmed them. These lands most often become attractive investments for wealthy non-land stewards.
The reason that this disturbs me more than it does most folks is not because I am particularly sensitive. I ain't. It is just that I am much closer to this problem than most people are.
I worry about the change in ownership of these lands. Historically, land holdings were passed down, intact, from one generation to the next. In the old world, estates were kept intact by traditionally willing the estate to the eldest son. While routinely unfair, this manner of heir selection was effective in the preservation of family properties. [Note - I believe that blindly selecting the eldest son as the recipient of the family property was a spineless cop-out].
Inheritance is particularly important when it comes to land because it is a non-depreciating asset. Its value does not decrease in time like a building or an automobile. There are not many non-depreciating assets available to us. Precious metals, gems. and art are all that come to my mind. [And... I'm not too sure about art].
When lands were passed down generationally, the hope [and custom] was that he would make his living on the bounty of the land, improve it, then pass it on to his heir. In current times this system has become broken for several reasons:
- Tough economic times have made prosperity hard to find on the farm. Consolidation in the food industry has allowed large multinational companies to tighten the margins on the raw materials that are produced by farmers.
- Operating a farm profitability became economically tougher with each succeeding generation.
- Large [and expensive] equipment and other technologies were hard to cash flow on decreasingly small acreage.
- The notion of farm patriarchs and matriarchs leaving the estate to one operator fell victim to an irresponsible application of 'fairness'. It has become much more socially acceptable for a farm family with 5 children to equally leave 20% of the estate to each child. This is certainly a more fair distribution, but it almost ensures failure to any heirs who choose to make their living on their portion. Few can make a living for the next generation on one-fifth of the land that was required for the previous generation.
The last reason listed is most distressing to me. The average age of the American farmer is over 60 years old. It is estimated that half of the equity in farms will change hands over the next 15 years. Farms that are kept intact may survive. Farms divided fairly and equally by the number of aires that are considered probably will not.
Farmers - please don't allow 'fairness' to be the only consideration when you are making this most important decision of your life.
- Will Harris
