Vance and Bonnie Haugen, who own a farm near Canton in Southeast Minnesota, have worked out an interesting approach to dividing their land among their child who farms with them and the two who do not. Their wills specify that Olaf, who farms with them, will have the first shot at buying the home farm and can continue to rent the land for seven years before purchasing “to give him a breather to figure things out,” as Vance and Bonnie say.
The price has been set — the lesser of $2,000 an acre or an independent appraisal. Proceeds from the land sale are divided equally between the three children. Inga gets second shot at purchasing the home farm, then the third child, Thor, then the grandchildren.
Inga has first option on the 160 acres of Northern Minnesota land Vance and Bonnie own with his mother, and Thor gets first option on 30 other acres Vance and Bonnie own.
This transfer plan, they say, “might accelerate or change.” If it does, they will communicate that change with their children, as they have communicated their existing plan.