These folks don't realize that a decent size farm, say a section (1 square mile, 640 acres) is worth hundreds of thousands of dollars, especially after the real estate boom of the past few years. And, as NavVet pointed out, they may not generate the cash flow to cover the cost of the loan, especially when that's added to farm expenses. (That doesn't even include the problems that develop when they have a poor crop year.) So, the inheritence tax on a peice of land that's been in the family for 125 years has to be paid again and again as the generations pass. And people wonder why the farming population continues to dwindle.
Exactly.. inheritance also gives younger people a headstart sometimes. No 20 year old is going to be able to come with hundreds of thousands out of nowhere to get into the farming business.
If on the other hand its passed down in the family, he can.