Tuesday, October 7, 2008

Financial and Equity Issues

Young farm business owners are frequently highly leveraged .


Financial arrangements for farm corporations & businesses are complex. The value of the land is the underpinning for the business. Many parcels of land can have a complex set of financial arrangements with first, second and third mortgage holders.

Q #1. My various properties have different mortgages on them. How will I be compensated if a property is split in half and the resulting smaller properties are not worth the same amount as my mortgage?

Q. #2. If you farm on a proposed or final route are there land use issues that can limit my ability to retain a viable, saleable business and thus my eqity? Ie) land freeze issues , development issues .

Q. #3. If any proposed highway may be 30 years out, who will compensate a landowner for any loss of future equity or business growth?

Q. #4. If a person owns property in one of the proposed corridors do they need to disclose that part of their property was within the 1 km wide potential corridor, if they are thinking of selling that property?

Q. #5. During the study process, land values for businesses and residents will be impacted. Who will compensate for loss of equity while the consultation process moves forward?

Q.#6. When the route is selected and the government gives its support to the route, I understand that it may be years before the road construction begins.

I want to know what the land acquisition process is that the government initiates once the route has been selected?

Q. #7. Do they start to approach landowners within the new route about their willingness to sell?

Q. #8. What arm of the government does this?


Q # 9. Will landowners within the chosen corridor be approached by the government when the study is completed to confirm that their land
will be needed for this new route?

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