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Dave Endorff - raw and compressed for file size
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Okay, my come through loud and clear.
Alright sounds good.
And I hope we can have a discussion just kind of like we've been doing here, but you kind of lead the lead the questions there Alan one thing to be aware of it.
consciously he asked you a question, since he won't be in the video if you can kind of repeat the question.
Okay, maybe pause just for a moment.
can make a clean break Okay, I get done talking to you Sorry, I have to remember after you get done i've taken just a moment to wait before I asked her talking about the next thing Okay, if you could do me a favor first and clap your hands twice.
Alright, are you ready.
Okay, all right well first.
You have to give specifics, but talk in general about what you've done your your career for farming, which were granted prices and what you're you know any livestock and you know, since you're.
First of all, is is i'm David and dorf i'm here at they can nebraska in my farm shopping and visiting with Alvin Alec here from university nebraska extension here and we're talking about farm succession today.
A little bit of history with my farm I moved here to my farm here at they can when I was in kindergarten.
Back in 1959.
And at that time this farm looked a whole lot of different my father had bought a half section of ground here and and.
Obviously, about a third of it is pasture and about two thirds of it was was row crop and, obviously, at that time it was all dry land and and looking around my farmstead you can still see some of the old buildings as typical of that time.
He had a few milk cows, you had chickens you sold cream you sold eggs that was you're spending money also milk and eggs for the table.
So, and a lot of the grain and hay that were produced went to feed those that livestock we had hogs at that time there's still a fair growing house down here the old eight by eight pans.
dead fairchild sounds in there once, twice a year had pigs sold hogs always work to sort load hogs wasn't fun.
But then, then in 19 6064 my my dad was able to buy a neighboring quarter and then 1967 was our first irrigation well showed up on the farm.
And that really changed life on the farm, all of a sudden, we went for from having even by little grain to having extra grain to sell and and over the course of years, then dad bought a little more ground on the way.
Most of it was drying land that we developed for irrigation we dug a well here at home, back in.
Probably the early 80s, because we originally tried to flood your gate about 2830 acres off of off of runoff from the other well and that didn't work, so we.
And so you know, in the 90s, then I step that up, but a pivot on there on this farm and and so so life has has changed with pivots and with irrigation.
So, so today my my operation is is 12 irrigation wells and about 1500 acres of ground.
largely went away with.
Some of it did, but but, quite frankly, some of it is still here and in 2008 fall December of 2008 I rented out my pastures, because I.
That was that was two years after my father had passed away my father just loved his his his black cows and his her football, so we had those white face camps.
And and he's he many times got a premium for those white face calves, as in cell most heifers is breeding stock.
And that was kind of his pride and joy he just loved that but towards the end of the year, you know, as I did my taxes, I looked at that calf check.
And all the time that I spent working with those cows and working with putting up hey and I said, you know there's there's just got to be an easier way and in our grain operation had grown more than and, and so we we actually rented out our pasture so I have about 200 acres of pasture.
A sidelight of that is is is, I still take care of the fences I still clip the trees, I still take care of the of the the souls.
Now, why do I take care of the of the pasture fences.
Because if the cows get out where the ass there in my cornfield.
So so it's my pride and joy to take care of my pasture fences and.
Take care of that myself there's gonna be a come a time when I can't anymore, but we'll cross that bridge later and gives me something to do.
On the camera.
Part of this operation.
With your family.
Okay we'll talk about some succession plan from from my father my parents down to me my mother actually died fairly young at she was 54 years old died in late 1984 they were in the process of building the home that I live in right now here on this on this farmstead.
And, and so as part of settling my mother's estate they had done some estate planning and so so each of us three children, I have an older sister Lynn who is.
A registered nurse was a registered nurse she is now retired in Lincoln my younger sister Mary is your younger than me and she married a farmer lives east of town here.
And so, so each of us inherited in 80 acres of land I inherited half the home quarter and each of the other two inherited a separate ad.
And my father than rented we rented fairly reasonably to him part of cheaply and that's to pay the taxes so that and he continued to farm.
Then, when his he passed away in 2005.
And, and so.
Here, then, I was the administrator of that estate and I had a distant cousin working for me at that time, and he made a very interesting comment.
He says, if you can settle that a state and settle sit down with your sisters and brothers in law for good Christmas and thanksgiving dinner, he says, you will have accomplished something.
And I did.
That probably came from one of your your.
Face right, I wanted to mention that because because i've been that one of one or two of alice's presentations already in my lifetime, you might have to edit that out.
But the but the but the key was is is each of us inherited another piece of land I inherited the second half of this one quarter.
And my father made a decision at that time he even though he was still living in the old house that was here at that time.
He told me he says, since you've been here to this this rest of this quarter of land, he says, you just as well finish the House and you and your wife and your two children can move into it.
make it your home and so that's what we did.
And a big part of of settling my father's estate was the fact that my brother in law had had realized, and he knew and he worked close enough around here that.
Were he knew that I had put a lot of sweat equity into this operation and and we did the best we could to make things equal, fair.
The the girls got cash, obviously I got a little bit from life insurance proceeds, but every bit of cash that I got ended up going into finishing this home so.
You know, with with the with the machinery during after he turned 65 he realized that he needed to retire just to so he didn't have to pay back always so security.
And so, he set out on a plan to where to where he helped my sisters at that time, build homes by giving them cash, for example, one one year at Christmas time, each of them got a $10,000 check and I got a bill of sale for a $10,000 corn head.
And so, you know as as some of the equipment needed to be traded off, I wrote in checks for for the for the trade in value of a tractor and bought a new tractor.
or different tractors and so, so you know, by the time that that he was 75 years old, three or four years before he retired he pretty much had no interest in the in the equipment anymore at all, I had I had purchased at all, but it was a slow process.
equity equitably equally fair i'm going to use all all three terms and everybody would define those terms simply.
You know another little sidelight that that a lot of people didn't understand was my father live next door.
And he helped me with some of my farming he loved to do two things very much Lee he loved to put up good hey that was his joy in life.
He could spend hours out there on his age tractor and that nine foot rake Reagan hey or or that john deere square baylor and dropping those little idiot blocks behind.
He just loved that the other thing that he loved to do is sit in the combine and drive it and operated at harvest time, those were to his two real joys in life and and you know, up until two three years before he passed away he still did those things, but my wife and I also.
fed him a new meal every day for for roughly 10 years my wife.
Did did some of his laundry for him so so we did a lot to take care of him to.
that's a good question now what's causing me to end my career at this time, first of all, is i'm 69 years old.
And i'm looking at next year I start receiving so security I haven't haven't started yet.
want to get that maximum so security, but the more money, I make if i'm still actively farming.
Like I get based Oh, I have to pay more tax on my social security and i'm still paying a lot of income tax i'm proud to say i'm paying a lot of income tax and a lot of people don't know it, but if you're a high income person.
On medicare they hammer YouTube they send me a nice letter each year that says, since your income was high last year, then you have to pay extra over and above for your medicare and so i'm in that class to.
The other thing is, is my health is is deteriorated, I might might look fine but but i've made arrangements to get my right knee replaced in.
Next January got it got a shot my knee I just can't don't move near as fast as I used to crawl and even in in an auto these tractors I take one step at a time not.
Not too it's just it's just a lot slower.
i've had heart problems since 2006 with atrial fib had a couple of you know procedures with that, and so my wife wants to travel more.
we've got we've already got a bus trip lined up for August here late August, probably looking at going to Alaska maybe next year.
Things that we want to do.
that's so Those are some of the reasons we want to.
And, and the other thing is is you know our equipment is still valuable I haven't purchased a lot of equipment on the advice of my of my financial advisors, the last couple years.
But it's still fairly new I talked to a neighbor here that retired 10 years ago and he told me he says, I wish I would have done what you're doing, he says, my equipments all 10 years older.
Batteries is all need to be replaced things don't work anymore, he says, I wish I would have sold, so my equipment long time ago.
So I looked at how I wanted to retire okay and and you know I looked at, for a long time and at what I call this step down plan.
Of where first of all, is you, you part with your rented ground second ball then maybe the next year to you give up a quarter to and.
And maybe maybe for the last three or four years I just far my home quarter well you still need all your equipment to do that, so I kind of.
decided I wasn't going to do that so then it came became my focus of our water where can I can I look at a successor farmer.
And, and obviously the easy thing to do would be to put an ad in the paper and i'm sure i'd have dozens of phone calls of people wanting to rent my ground and and.
How much how much will it take how much is the highest bid and how much can I raise it.
And I really didn't want to do that because i've seen that happen in my Community already before what happens the fences disappear, the waterways disappear, the terraces get leveled off.
A little history story here is is this farm where i'm sitting where this half section that my father started out with was the county conservation farm in 1946.
And some of those most of those terraces are still here today they've been maintained plowed up take care of some of the waterways have been converted to tile outlets.
But I wanted to see that continued you know and a lot of my farming operation is is some smaller fields.
there's a couple places you couldn't physically get a 24 real plan or into got across the creek over the river and through the woods and.
And so, so that's why I wanted to work with a smaller farmer, I wanted to work with a younger farmer, simply because i'd like I wanted my my goal was to set someone up in.
In my farming operation to to continue my farm that would still be the indoor farm and and I let let my renters know that that it was gonna be a long term rental situation you know.
I I don't foresee that that land will be sold in my lifetime and I said when i'm gone my children in order to decide what they want to do, but but they've already seen the income that this land provides and and will probably keep it.
You know I I actually before I found these two brothers, I found a more of a middle aged man had but hey I had had two children 1412 and 10 ish eight ish and and.
He he is he is already in middle level management for co op and and but he came here and looked situation over he was interested, but his main concern was housing.
And at that time there was literally no housing available in in my wife and I were not ready to move off the farm yet at that time, make room for him and and so because of that that deal kind of fell through now the young brothers that that that we have worked with and selected here.
One is living in a rented home ones living in the old family farm home and and you know housing isn't real critical for them, you know they're they still base out of their family farming operation.
positive things good things for leasing to them, first of all, is is the younger brother Chris worked for me for about a about a year and three months started in in the fall harvest of.
20 fall harvest of 20 and worked for me the whole year in 21, including the harvest and the fall of 21 and and you know I saw a young man and his brother both their they had a lot of ambition, they had a lot of good family background well educated both had gone to college.
Just a lot of common sense.
Good work ethic that's that's a good way to put it that's what I saw in them.
What didn't go well okay my.
I had what I call written down what is my plan for retirement and my plan was was first of all, is is to just work with one of the brothers.
Okay, that was that was kind of my plan my goal and my preference but but they wanted to do it together and and we had a couple really good heart to heart talks about.
Quite frankly, in our in our neighborhood there have been some brothers that didn't get along.
My i'll go back to my father when he first came here and started farming he worked with his brother that that live seven miles away.
and especially came harvest time well we're going to harvest years first we're going to plant yours first you know we're going to take put do yours first what there was a little friction there.
Did they get along yes fine, but you know, we had a case here a few miles away to the east here where we're two brothers literally got into a fistfight.
beat each other pretty good.
Over over who's going to do what and who isn't.
And I really had a heart to heart talk with these brothers and I said, you know this will all work out well until one of the four of you, including your wives until one of the four of you feels like you're getting the short end of the stick.
Whether that's time whether it's money, whether its.
Family expenses whatever.
But I said as long as you can get along fine but don't put me in the middle.
that's what I told.
i'm gonna i'm gonna i'd like to finish it one more piece.
The other thing that I kind of had a goal that I had in my mind was that this would remain a farming operation.
I mean it's it's 1500 acres of land and irrigation about 1200 acres of of actual cropland 1250, to be exact irrigation too and it's it's been my life's work and and I figured that that would be a full time job for for one person.
And, and I had hoped that that you know that one person that that one of those brothers would would then purchase least a major share of my equipment.
But they had other ideas and that's all right, it took me a while to kind of accept that but, but I have to learn to be a landlord to we can talk about that down the road, here too, but.
I have to be a landlord and I can't make those decisions for them their ideas became that that.
Our dad is 6263 years old, even though he has made the statement that he's not even thinking about retirement, yet, but the boys are looking ahead to the fact of when he retires how are we going to put this all together and they're looking at it as one big operation.
Something we do all together.
So it's a little bit different attitude than what I had but but i've accepted it and and just a funny part of that story is is is they have literally all green equipment and and and most vines red and.
So so that's why they really didn't want too much of my equipment, now they have bought a couple pieces i'll be the first to admit small sprayer and hydrogen toolbar some things like that, but but.
that that was a little little sore spot but i've gotten over it okay.
Well there's and let's talk about the lease agreement and and first of all I have to compliment the the ul ag economics department I basically use their leases that were that they have published as as a template and and.
That that really formed the basis for my for my leases and, obviously, you have to have four names on the lease instead of to you know it's it's two men two two and their wives.
That that's a little bit of a change, but not a major deal.
One of the things that that they did ask for and I respected is is is they wanted a right of first refusal clause which which you did not have in in the URL leases and they asked for that.
And I put it in there.
Right right for a purchase.
So that was important to them, and I saw no reason why it why couldn't shouldn't be included.
We had we visited briefly earlier about about the green marketing Park, you know, we had a talk about on a shared lease of who's going to market the grain how we're going to market the grain.
I have a lot of grain bins here, you know i'm just a firm believer in in storage of grain, first of all, as you can harvest that grain just a little bit wetter.
put it in the bins air dried a little bit and and then we have some really good markets here that need corn year round, we have, we have the lci feed mill that that services lot of hogs they they buy 1.6 million bushel of grain every year, of course, they you went by it on the way here.
that's that's a local market, we have mid America feedlot here six miles West that has 26,000 head of cattle on on feed they have storage for 40,000 bushels that's that's about four days, three days supply.
And in the past i've gotten to know them pretty well and i'm one of the few people that they allow to feel hall green there on weekends.
And they have called me a time or two on a Sunday or Saturday and say can't you bring us a few loads of corn because it's a three day weekend and it's going to snow Monday.
Probably eight out of the last 10 years I have hauled them corn during Christmas week when nobody else wants to.
I asked for a little extra money for that see, but if you can by storing your grain it's typical that we can add 10 to 15 to 20% on to that price of corn every year.
Every year, and yes it's worth yes augers yes it's clean out bins.
But if you to me if you're not willing to do the work because will not raise the crop.
Advice advice for other people that are that are older and figuring out what they want to do.
i'm trying to run this land where we're trying to match the young people with land owners like yourself to prank looking for that next generation come in what advice would you give those land owners to consider getting somebody in the younger in their neighborhood or.
let's we can talk a good question has to do with with what what advice I would give to other landowners that are considering retirement, first of all, is is the process, probably hasn't been near as hard as I anticipated that would be.
Yes, it has its challenges, yes there's.
You know it's little work.
Working out ELISE.
picking the right person so forth, but yet I looked at it, as is what are my real goals here, you know I want to involve a young person or a young family or two in my Community I just love to go to the go to the church where they worship and and see him there.
I love to see him on our local street shopping in our local store.
Those those kind of things to me that's you know, one of them plays play softball on the men's softball team.
Those are those are just little things you know and they've talked about maybe joining the fire department, at some point when they, especially when they move closer, those are those are important little pieces of helping to build and keep and maintain our small rural communities.
And that's what I wanted to be part of.
Considering stepping aside take over what are the things you think they need look out.
Things to look out for in the process, obviously, you have to consult your tax person.
i'm i'm looking at having a online auction for my equipment and and.
You know, yes there's going to be some tax consequences, I have been deferring a lot of migraine income to the next year as part of my tax strategy for four years and and because of that i'll have a lot of income, this year, and not a lot of expenses.
Yes, i'm going to get hammered on some income tax.
That it's just part of life.
i've been paying a lot of income tax over the years and and i'll just paste more yes, you know I am doing some charitable giving also setting up some some.
Things to give away for charity sport to sport, some causes that i'm passionate about and.
Now iron kinda lost for words here.
um no not really I think we've covered it pretty well.
I think I covered enough of my family's succession story to to to let people know that.
of how I got here how I got to where I am, and I mean, yes, yes i'll be the first to admit that I I did inherit some property I didn't start from ground zero.
And another another huge part at least of my operation has been the irrigation, you know the the pivots and a lot of lot of what I have done with with land that I have bought is to develop it for irrigation.
And, and that has been extremely valuable.
You know they're there there's there's a little and a lot of it has isn't 40s or isn't quarter, so it isn't full quarter.
it's i'll tell you the story and in.
2000 yes in the year 2000 my father bought a 40 over here it's just just a stone's throw away and my my father had the attitude of, especially if land is next door close by.
And you can put money down if you can put a down payment on it, you better buy it Okay, if you can afford the downpayment you better buy it that was his he didn't like the stock market.
he'd rather put money in land, he says it isn't going to walk away.
That was his theory in life and and so in in in the year 2000 you know this, these later in life already roughly roughly 6866 60 years old, and so there I bought the Ad across the road we had we had a neighbor that just had an 18 to 40 that's all he farm.
And he died and and so that his heirs, he was single didn't have any direct family, so he has some nieces and nephews and sold sold this ad and 40 I bought the Ad and and put.
right away, put a put well on and pivot on it, he bought the 40 over there.
We cleaned up a bunch of trees and those then some ditches and improved the ground well came along to an inn so in the process of settling dad's a State, then I purchased that that 40.
Well, in 2010 I dug well put a submersible pump in there just to do that 40 well, if you remember our dry weather of 2012 came along, we had high prices, I raised a good crop because I could irrigate.
get paid for that piece of ground and the well and the pivot in one year.
I mean that probably sounds like a bragging story and I probably should be deleted.
Yes, yes, yes.
Back in back in 2009 I I bought a quarter ground that had a 30 acre pond in the middle of it.
The neighbors all kind of looked at that is waste ground but I had actually walked out there on the ice probe through the eyes to see just how deep that pond was and I realized it really wasn't very deep.
And so the day after I, the day after I signed the papers for that piece of land.
Slow me talk to my sister hello, this is David hey.
i'm here with toby.
Do you ever remember seeing that oh yeah.
Let me put you on speaker OK.
OK toby are you there.
Okay um for some reason that tractor has a little quirk to it and, and if you if it has to do with if you have the throttle clear back to low I.
That very well and so turn the.
No, no, no don't have to do that okay alright well we'll give it a try, if that doesn't solve it, then, then you know i'm probably over there and in no have or 20 minutes half hour or something like that so okay okay all right okay all right come on.
This is my sister I you know she's she's getting ready for her stuff for big iron sale now to and because, remember, I told you, she has been wanting to keep a tractor and a loader and a blade and shredder and and now he's gone so why should, why should she keep that stuff.
So anyway okay.
Another whole month but see it's.
You know I hate to have an advertisement for big iron but, but this is something that I can economics department kind of needs to run up the flagpole.
Is is the auction market is changing, both for land and for machinery, even for smaller stuff it's going to online sale, you would not believe the reach of big iron auction.
Okay, so and i'm going to give you a couple examples for my sister and brother in law sale.
He had a windmill head.
You know what they are, and there was even a cover missing off of it, he wanted to throw out the iron pile says i'll take a long, put it in the iron pile I said no, put it on your sales, he did he says, oh probably won't bring anything I said, if it brings 10 bucks and walks off.
it's worth something to you it's worth more than scrap are.
The thing brought $110 and a guy from wyoming Cayman goddess.
Because of the online part of.
How did this guy from wyoming find out that that windmill head was even for sale.
You see my two straight trucks in the back here phil had a had a pretty common 93 international straight truck with a 10 speed transmission and boxing hoist and in the frame was really rusty because he had hold a fair amount of grain during the during.
All the road time never power wash it.
It was you know that frame was really aggressive.
That truck brought $29,000.
A buyer from Pennsylvania bought it.
And to add insult to injury, they paid a trucker $8,000 to haul it from they can nebraska to Pennsylvania.
That is the reach of big iron ox you see that that Jason Boston my representative was here yesterday.
He says you already have 50 followers on that Arctic cat side by side.
And my and and the bidding isn't even open on my items if they're online if you can find them but, but the bidding isn't even open yet.
that's that's the reach of big iron auction if you had if you had an on farm sale, first of all, as you try to figure out where to park 200 people around here and second ball is you probably wouldn't get more than 200 people here, especially if the weather was hot or raining.
If it's big iron auction you want a rainy day, because then they're sitting in their house and looking on their computer.
Right we're going to have an open house two days before and yeah.
Okay, that that was one thing that I did I did have on my list here.
Okay, what didn't go as well as you expected that was one of your questions first, first of all, is there, probably hasn't been as much contact as I would have liked.
and part of that is my own problem I guess you know i've been busy getting this stuff ready in my in my in my tenants know that but i'll give you just a small just a little example I had two big brush piles and Chris had helped me build them last last year last fall.
And in this spring we didn't have very many opportunities to burn them they're right on the corner of their of their farm ground, in fact, it would have been in the way of their big equipment.
And it's like I call Chris I said, can you come and help me.
burn these two piles this morning oh I got to work on my planner.
Okay well you know as my place is a landlord I can't I can't demand that they come and do this I can't so I went and did it myself and it all worked out, I didn't have any problems, but you know.
My my irrigation equipment some of its kind of complicated, you know I have, I have one place where I run four different pivots off of and run a floodline off of one well.
And you got to have things correctly hooked up and and put together right, and you know I I asked them I said, you know when it comes time to work on this, you know i'd really like to be involved.
And I haven't been a whole lot but have they had any disasters, no but.
You get the point you see what i'm trying to say the communication could have been better.
So that's just just just a minor thing but being a landlord.
I don't need to be calling them up every day, are you coming today to plant my crop, are you coming to spray are you coming to irrigate today.
No, I don't need to be doing that and and that's been a little bit difficult that's a good question now.
We just have to work those do.
You use your names and.
For the time being we're gonna stay here that I mean that is a good question, what are we going to do first of all, is is is I would really love to to get my renter and and his wife here in in the home, I think that would.
it's amazing how well, you can look out my kitchen window and you can literally see three quarters of land here, and this is what my father loved is when he was milking cows, he could stand at the back door, the barn and look out and see his three quarters of land and plan his day okay.
And if my renter comes here or lives here rather than coming to to their fathers, you know farming operation by the way, which they have a very nice shop, which I don't have.
heated chomp air conditioned cool you know i'll take that back it's probably not air conditioned but it's heated shop big shops yeah insulated where they can unfold a nice 16 role planner I can't even get in the door here.
Those type of things, if I had one regret, on my on my farm and career is the fact that I didn't invest in a in a nicer shop.
that's that's a sidelight story, but.
At some point my the man that rents my my pastures will probably you know he's 6162 years old, how many more years is he going to be doing this, I don't know at some point if if he when.
He decides to not rent my pastures anymore my my farmland renter is definitely interested he's told me that he and his brother.
And, but when there are cows here then it's probably time for me and my wife to possibly build a house here in decon.
we've we've kind of kept our eyes open for houses that have been sold in town there aren't a whole lot of houses that have sold in town and nothing that really interested my wife so.
At this time, no I.
There they're both in the omaha area right.
And we didn't really talk about my children, you know my son went to ul graduated in the mechanized egg program biological systems management.
That program and he got a an internship with a with a machine shop there on the edge of omaha and they really liked his work offered him a full time job.
And, and when it came time for the owners to retire, they said brandi are you interested in buying and purchasing our share of this of this business.
It was a huge I mean we're talking about.
These half million dollar machining machines.
computerized machines, you know, several of them in that in that business we're talking about a business that employs 45 people that that's a payroll that's a constant expanse.
And, but, but he worked with those guys and and became an owner got a big Small Business Administration mode and and so his wife is a registered nurse so that that's got a very good position at MED Center in omaha.
Very well, liked and known and and and so so.
They had no interest in coming to the farm my daughter is a CPA she she works for a big CPA firm there and the omaha area hundred and 28th and dodge.
And, and so the right right guy hasn't found her and and she's still single and and so she really wasn't she probably has more interested in the farm than my son she'll come out and harvest time drive the trucks and and and when we've had floods here she came out and got her.
hands dirty and bull bull residue debris out of the fences things like that.
she's probably spend actually more time on the farm here and in the last five years, and my son has but, but she you know, and she will she will be a good landlord when my wife and I are gone.
She she knows what's going on she's she's got that skill set.
But, but she had no reason to come back here to the farm either.
So so that's part of the reason that that i'm retiring to looking looking for off farm renter.
The screen size you are trying to search captions on is too small!
You can always
jump over to MediaHub
and check it out there.
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