Farmers Struggle With Succession Plans

The USDA’s 2007 Census indicates that the fastest-growing group of farm operators is those 65 or older. Young people are not dying to take over for retiring farmers, either. This means that farmers looking for someone to take over will have to be creative and start planning early. A son or daughter can slowly start taking on increasing responsibilities, or you can groom someone outside the family to take over eventually.

Rutgers University has created a website to assist farmers with their retirement planning. This site covers a range of topics from retirement income, financial assessments, asset distribution, and tax issues. There are also programs aimed at getting young people involved in agriculture.

Another hurdle to smooth transfer of farm ownership is Congress’s uncertainty surrounding estate tax. It is hard to make an estate plan without knowing the tax implications.

See Rick Jordahl, Commentary: Can Your Retire?, Drovers Cattle Network, May 28, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.