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Carter's Sec of Ag Bob Bergland and the Demolition of the Family Farm.
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Boone & Crockett
Posted 1/14/2025 05:05 (#11055171 - in reply to #11051351)
Subject: RE: Carter's Sec of Ag Bob Bergland and the Demolition of the Family Farm.


KevinM - 1/11/2025 15:16

You are correct. Unfortunately, they hadn't got that all in place. However, what I was referring to was the general ag economy beginning in the early 80's. They had just recently purchased some farmland so there wasn't a lot of equity that needed to be bought out. He basically paid for the little equity they had and then was on the hook for the remaining debt. I was a junior in college so was able to return home quite a bit before I graduated. Older brother quit school and came back also so we made it work-just not quite how it was originally planned.

Most buy-sell agreements with cross purchase plan are funded with life insurance policies on each brother, with John paying the premium and owning the policy on brother Joe, and vice versa. In this case, with brother Joe dying very early in the deal, the life insurance proceeds would have swooped in and paid the farm off. Cheap term would have accomplished this task wonderfully, eliminating in your words “on the hook for the remaining debt”. Which I have no doubt was a major struggle in that timeframe.

Edited by Boone & Crockett 1/14/2025 05:08
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