Succession Planning

The World Needs More McArthurs

Mon, 06 Apr 2026 20:55:05 GMT

There’s a new song in country music that’s striking a chord with American farm families.

“McArthur,” sung by Hardy, Eric Church, Morgan Wallen and Tim McGraw, tells the story of a farm passed through four generations of the same family. Each verse introduces a new McArthur, carrying the land forward in his own time, shaped by different circumstances but tied to the same piece of ground.

That’s the same story many farmers are living today. And if you haven’t heard it yet, take a listen.

John McArthur

The song begins with John McArthur, a man working the land with a mule and a plow to provide for his family. As the first generation, John spends his days laying the foundation of the farm. He doesn’t know what the future holds for the operation, but he knows the work is worth it.

Every farm has this first generation: the person who gave the farm its start. Our grandparents or great-grandparents built the farm out of necessity without knowing what was ahead.

They planted the first crops, cleared the first fields and figured things out as they went. The decisions they made might not have seemed big at the time, but they laid the groundwork for the generations that followed. Even without a map, they knew the farm was something worth building and passing on.

Junior McArthur

Next comes Junior McArthur, the son who steps up to take over the farm but is sent off to war and never returns home.

He represents the second generation: the ones who take over a farm that’s already established but face challenges much different from what their parents experienced. Where John built the foundation, Junior inherits it and has to figure out how to keep it going.

Jones McArthur

After Junior comes Jones McArthur, the third generation to farm the same ground. By the time it’s his turn, the farm is running smoother, but the problems he’s dealing with aren’t the same ones his dad faced. He represents the generation trying to respect what was built while figuring out how to make it work in a more modern world.

In the song, Jones is also the one trying to pass along the lessons he learned growing up on the farm. He understands the value of the land and the work that went into building it, and he tries to teach his son the same thing.

But his son comes home from college seeing something different. Where Jones sees a family history, his son sees the dollar signs tied to the land.

Hunter McArthur

Finally, the song introduces Hunter McArthur. He’s the fourth generation, the one now standing in front of the decision many farms eventually face.

In the lyrics, Hunter is presented with a deal that would turn the farm into a neighborhood. It’s a tempting offer. After generations of hard work, the land is suddenly worth a lot of money.

Hunter represents the generation many farms are looking to today. The farm is established and the land has significant value, but the question becomes what to do with it next.

For many young farmers, this generation faces a different set of decisions from the ones before them. They have more opportunities off the farm and often more outside pressure pulling them in different directions. At the same time, they’re inheriting or buying into farms that have decades of work behind them.

A Familiar Tune

At the end of each generation’s part in the song, a line is sung: “When you pass on, what are you going to pass down?”

Farming has always been about passing things along. Each generation takes what the last one started and tries to make it better, but that chain only works if someone is willing to take the next link.

Today, the pressures on the next generation are real. Land values keep climbing, development keeps pushing farther into the countryside, and, for some families, the offer to sell the farm is hard to pass up. But most farms exist because someone in the previous generation chose to keep it going. They made improvements and worked through challenges with the idea that the farm would be there for the next generation to build on.

The world could use more farmers like the McArthurs. So, when it’s time to think about the next generation, ask yourself this: When you pass on, what are you going to pass down?

For more on succession planing, read:

Don’t Push Pause: How a Near-Fatal Accident Made Our Farm Succession Plan Crystal Clear

Thu, 05 Mar 2026 14:57:35 GMT

The last Friday in February was supposed to be a victory lap for a winter well-spent. It was a rare 65°F gift from the Illinois sky. The kind of afternoon where the sun feels like a promise of the spring to come.

My husband, Scott, and our youngest son, Jacob, spent the afternoon moving cattle between sites. It’s a project that usually takes three or four hours, and as any farmer knows, the cattle rarely cooperate. But Jacob did. He was right there, shoulder-to-shoulder with his dad. Our oldest son, Tyler, was home from college for the weekend, helping on the dairy with cattle work. It was one of those perfect, productive days where everyone was basking in the sunshine, the rhythm of the farm moving in a steady, beautiful cadence.

When the clock hit 5:00 p.m., Scott was ready to call it a day. Our local high school boys’ basketball team had made it to regionals, and we wanted to be there to cheer them on. We climbed into our SUV, chatting about the chores we’d finished and enjoying the lingering warmth of the day.

We were only a mile from our farm when the world shattered.

It happened in a blink. A truck made a mad dash across the four-lane highway, blindsiding us. There was no time to swerve, no time to brake. The police report would later confirm what we already knew: there was nothing we could have done.

Everyone tells you that life can change in a split second, but until you are sitting in the wreckage of mangled steel, surrounded by a dozen deployed airbags and the smell of gunpowder and dust, you don’t truly understand it. As we hit, I felt the impact vibrate through my very bones. I immediately started to pray. “We will be okay. God, make us okay.”

Through the haze of smoke and shock, Scott’s voice was the only thing I could hear. He was a trooper, his own safety forgotten.

“Karen, are you okay?” he asked, over and over.

I wanted to scream that I was fine. I wanted to tell him I was right there. But the shock was a physical weight. My mouth opened, a moan escaped, but the words were trapped behind a wall of trauma. I couldn’t speak.

The rest of the evening was a blur of sirens, flashing lights and the sterile white walls of the ER. The ambulance took me away; the tow truck took what was left of our vehicle. We spent the night under fluorescent lights, but we walked away. We got to go home.

In the days that followed, a deep, heavy appreciation for life settled over our house. I am thankful to be writing this story, though I would give anything to have never lived it. But the most emotional moment didn’t happen at the crash site; it happened at our farm.

(Karen Bohnert)

Our children asked the question every farm kid fears: “What would happen if both of you had passed?”

I cried. But for the first time, I could answer them with certainty. I told them about the will. I told them it was all outlined, all documented. It took me losing both of my parents and my brother — and writing about other families’ succession plans gone wrong for years — before we finally sat down and finalized our own a decade ago.

I think back to my own parents. It took them losing their own son — my brother — in an automobile accident to finally lean forward and be brave enough to talk about their own will. They put a plan together soon after and revised it a few times over the years. When the time came that we eventually lost our parents, my sisters and I were so incredibly thankful we did not have to worry about the logistics during our grief. My parents had it all documented. They gave us that peace of mind.

Farmers, I am pleading with you: Don’t push pause.

Don’t wait for a sunny day to have the conversation. Or a rain day. The highway doesn’t care about your schedule. Don’t wait because it’s an uncomfortable conversation; it will never get easier. Don’t wait because you aren’t sure what is “fair” or what is “best.”

Start the conversation today. Meet with a lawyer. Get it documented. You can always change and revise it — we already have once since we started.

I am so incredibly thankful that today, my kids are out in the dirt helping on the farm instead of sitting in a lawyer’s office reading a will. I am thankful they didn’t lose their parents on an Illinois highway. But mostly, I am thankful that if the worst had happened, they wouldn’t have been left in the dark.

Don’t wait. Your legacy is too important to leave to chance.

The Succession Gap: Why Two-Thirds of Farms Face an Uncertain Future

Tue, 03 Mar 2026 20:18:08 GMT

Farm Journal recently reported that 44 million acres of U.S. farmland are expected to change hands in the coming years - nearly 15% of American cropland by 2030.

That’s a staggering number. But what concerns me most isn’t just the acreage. It’s what that number represents: leadership transition, ownership transition and decision-making transition happening all at once across the country.

When I look at the accompanying data, I see both opportunity and vulnerability.

According to the Farm Journal Seed & Planting Survey and Consolidation Index Predictive Model Analysis, only 34% of growing operations have a formal succession plan. Among benchmark producers, that number drops to 29%. For operations identified as at-risk, just 21% have a documented succession plan in place.

Let that sink in.

Even among farms positioned for growth, two-thirds do not have a formal plan for how leadership and ownership will transition. And nearly four out of five at-risk farms are operating without one.

At the same time, consolidation risk is not limited to smaller operations. Farms under $250,000 in gross income show a 58% consolidation risk. Farms between $250,000 and $500,000 show 48%. But even operations in the $1 million to $2.5 million range carry a 32% risk. And those between $2.5 million and $10 million still sit in a baseline consolidation risk zone of roughly 27–30%.

In other words, income alone does not protect you.

Succession gaps, management transitions and strategic exits are driving consolidation regardless of size.

I’ve spent my career working with agricultural families navigating generational transition, and I can tell you this: consolidation rarely happens overnight. It happens when pressure meets unpreparedness. A health event. A lender conversation. A market downturn. A disagreement that was never resolved. A next generation that was never fully developed or clearly empowered to lead.

Agriculture has always been unpredictable. We all understand that. Weather changes. Markets move. Policies shift. But what feels different right now is how layered the uncertainty has become. Interest rates have restructured balance sheets. Input costs remain volatile. Capital demands continue to rise. Technology expectations are accelerating. And the average age of the American farmer keeps climbing.

Generational turnover is not something we can push off for “someday.” It is happening now.

So, here’s the question I would ask any farm leader reading this: If something unexpected happened tomorrow, would your operation be okay?

Would there be clarity about who makes decisions? Would ownership be clearly defined? Would compensation and reinvestment policies be understood? Would lenders feel confident in your continuity? Would your successors be prepared - not just present - to lead?

If you hesitate in answering that, you are not alone. But hesitation is a signal.

The data in the Farm Journal analysis tells an important story. Growing operations are more likely to try new technology. They are more likely to plan land investment. And they are more likely to have formal succession plans in place. That is not coincidence. It reflects intentional leadership.

The leaders that plan tend to think about the long term - not just the next growing season. They understand their profitability by enterprise. They are disciplined about capital allocation. They define leadership roles. They have hard conversations before circumstances force communication. They build clarity into the business so that transition strengthens it rather than destabilizes it.

Succession planning is often misunderstood.

It is not simply an estate planning document. It is not a will tucked in a drawer. It is not something you address only when someone retires. It is a business discipline.

It requires clarity about management transfer and ownership transfer - and those are not always the same thing. It requires fairness, which is not necessarily equality. It requires governance structure so family conversations don’t become a business crises. It requires intentional development of the next generation so leadership transition feels earned and prepared, not assumed.

And perhaps most importantly, it requires timing.

Consolidation favors clarity. It favors farms that reduce ambiguity before outside forces expose it. It favors operations that are structured - not just successful.

One of the most revealing pieces of the consolidation data is that even higher-income farms carry measurable risk. A $3 million or $5 million operation is not immune. Scale does not eliminate vulnerability if leadership transition is unclear or strategic direction is undefined.

The 44 million acres projected to change hands represent a defining moment for American agriculture. Some families will use this season to strengthen continuity and expand. Others will find themselves reacting - not because they lacked work ethic or competence, but because they delayed putting structure in place.

Planning does not eliminate uncertainty - but it does provide framework and stability.

It allows you to make proactive decisions rather than reactive ones. It gives lenders confidence. It gives the next generation clarity. It protects family relationships. And it preserves optionality.

If your farm is truly okay - strategically aligned, financially transparent, leadership-ready - then planning becomes a growth tool.

If it’s not, planning becomes urgent.

Either way, it matters.

Knowing the data should never create paralysis. Understanding your consolidation risk, your succession gaps and your financial position gives you something incredibly valuable: choice. When your business structure is clear and your succession plan is thoughtful but flexible, you can pivot as markets shift, opportunities emerge or circumstances change. You may not be able to eliminate uncertainty - but you can position yourself to move through it with confidence.

Non-Family Transition Plans: A Success Story to Take Notes From

Thu, 26 Feb 2026 14:50:34 GMT

For every senior rancher looking for an heir, there is an eager member of the rising generation trying to find ways to get started. The challenge? Getting the two parties to meet with their compatible counterparts.

Lydia Carpenter and her husband are an example of adapting your business and finding a member of the senior generation to build with instead of against.

How Did You Get Started in Production Agriculture?

“We started a farm business when we were in our 20s on leased acres. I grew up in the Red River Valley where land is quite expensive,” Carpenter says. “We decided that we were going to run a livestock operation, so we moved to the western part of Manitoba where agriculture is a bit more diverse and mixed. This is where we built our direct-to-consumer meat business.”

How Did You Find a Non-Family Member Looking for Heirs?

“We subsequently started buying heifers from an individual who was living in Alberta at the time,” Carpenter says. “He was originally from Scotland, had moved to Canada in 2000 and subsequently decided to sell the land in Alberta and move to Manitoba.”

She continues: “Before doing that, he had asked us if we were interested in working with him more closely. So when he moved here, he bought a farm not too far from where we were renting at the time. And then we started working together.”

How is the Business Structured?

“We run individual operations. We file our own taxes, and we’ve got separate businesses,” Carpenter says. “Both businesses are profitable, and we have similar structures in our business.”

Additionally, she explains: “We recognize that in order for us to be able to access land and build our security, we need some support from another generation. So, we started purchasing land to build our equity from him and his wife.”

Building trust is also a part of the business structure.

“Now we’re neighbors, and we are purchasing assets from him,” Carpenter explains. “Transitions take time, and it’s not the kind of thing that happens overnight, but a relationship builds over time along with trust and accountability.”

She says: “Over time we’ve recognized we are compatible and have similar philosophies around management.”

Q: What Else Goes Into Building Trust in These Types of Relationships?

“Trust is an interesting thing that ties into accountability,” Carpenter says. “Even business acumen can help build trust if you, as the rising generation, have the financial literacy, interest and good management practices to take on the business.”

She adds: “I think clarity of expectations is really important and then it builds over time. It’s not without risk to invest in somebody.”

She explains: “I think having open conversations about written agreements, business structure and general profitability of the business are important and trust is then built over time through general accountability.”

Q: How Can Other Members of the Rising Generation Find Opportunities Like This?

“If you are interested in a specific sector of production agriculture, go work in other areas of that industry and in those communities,” Carpenter says. “Additionally, be present at different events in agriculture and open about your goals as a young individual.”

She also says: “Don’t silo yourself in any specific production type unless you have really good reason to do so. Sometimes the opportunities around you are bigger than that.”

Q: What Are Some Red Flags to be Aware of in Any Farm Transition?

“Some red flags would be no desire to have written agreements,” Carpenter says. “Another one might be just general lack of financial literacy or poor money management — that can go for either generation.”

She also shares: “Another one can be people’s general health and well-being. Are you having compatibility issues because someone is really struggling with unresolved mental health or addiction issues? There’s going to be some interpersonal stuff that could be red flags as well.”

You can listen to the full conversation on the Casual Cattle Conversations podcast .

When Risk in a Crisis Becomes a Turning Point: Lessons from Top Producers

Wed, 25 Feb 2026 16:51:39 GMT

In a volatile agricultural landscape, risk is a constant. Weather, markets, input costs, succession issues, cyberthreats and pandemics all push farm families into uncomfortable decisions. During the “When Taking Risk in Times of Crisis Pays Off” panel at Top Producer Conference, six producers shared how they’ve navigated those moments — and what they’ve learned when the stakes were highest.

The panel, moderated by Rena Striegel, president of Transition Point Business Advisors in West Des Moines, Iowa, included: Edward and Rebecca Dalton, of Dalton Farms, Wakeman, Ohio; Chris Payne of 3B Hay & Straw, Ontario, Ore.; Wendy Alsum Dykstra and Heidi Alsum Randall of Alsum Farms and Produce, Friesland, Wis.; and Ron Rabou of Rabou Farms, Albin, Wyo.

Their stories spanned family tragedy, ransomware, COVID-19 disruptions, organic transitions and bold expansion moves — offering a candid look at what it really means to take risk in agriculture.

Here are five key takeaways from the conversation:

1. Crisis as a Catalyst, Not a Dead End

For several panelists, a crisis didn’t just test their operations; it forced a complete re-evaluation.

The Daltons describe being emotionally exhausted and financially stuck before a Top Producer event pushed them to question everything.

“We were floundering in agriculture,” Rebecca says. “We were not making any money, really. We were just doing it to do it and to continue that legacy. And we were to the point where, like, ‘why are we doing this?’ You know, we only have so many days here. We only have so much time here.”

After a series of family tragedies and persistent unprofitability, they made a bold move to transition about half their acres to organic production. The shift brought much-needed profitability and renewed purpose.

“The risk was I was going to quit farming,” Edward explains. “We needed something and a spark and to just want to farm again.”

In Wyoming, Rabou’s turning point came after the sudden death of his father and the unraveling of a complex family ranch structure. Walking away from a fifth-generation operation was emotionally painful, but necessary.

“We did a lot of soul searching, and I kind of came to the conclusion that the risk for me for not doing something was much greater than actually doing something,” he says.

Rabou and his wife started essentially from scratch, building an organic grain operation and a hunting enterprise, borrowing heavily despite having grown up in a “never borrow” mindset.

2. Numbers Matter — But They Aren’t Everything

A recurring theme was the importance of knowing your numbers while recognizing data alone cannot drive every decision.

“Knowing our numbers is what really helped us,” Edward explains. “If you know your own data front and back, when you really get into those tight situations that you need to be able to think and move… sometimes you just have to move, whether you want to or not.”

Recently, the Daltons made a bold move back to conventional production. The Daltons’ choice to step out of organic was a conscious decision to go against what the spreadsheet said, in favor of their family and team.

“Right now, when I’m hauling $12 beans instead of $40 beans, like we were for a few years, I’m not really happy with that decision, but it was too much time,” Edward explains. “We were losing time with our boys, and that ultimately is why we went back, even though we were making more money per acre.”

Rabou emphasizes having a clear philosophy about leverage: “I have no problem borrowing money on appreciating assets, but I have to be very careful about borrowing money on assets that depreciate.”

For him, land and infrastructure are long-game investments, and he admits he more often regrets the risks he didn’t take than the ones he did.

“I’ve never looked back and said I shouldn’t have made that investment,” he says. “But I have looked back a multitude of times and said, ‘Wow, I wish I would have made that investment.’”

3. Fear vs. Action: Moving When the Window Opens

Panelists agree that fear is often the biggest barrier to seizing opportunity — especially when decisions must be made quickly.

Oregon onion grower and packer Payne describes how, in the middle of a tense meeting, he and another young partner were essentially challenged to buy out older shareholders in an onion packing facility. They had seconds, not months, to commit.

His broader advice to producers now: “Don’t get caught up in fear. If you let fear dominate your thought processes, you’re never going to succeed.”

Preparation helps in those “15-second” decision moments, Payne adds. Continually learning, attending conferences and thinking through scenarios ahead of time gives you a framework so you’re not starting from zero when opportunity knocks.

Edward adds, “You absolutely know how it’ll go if you don’t try. If you’re not willing to try, it’s not going to work. You can’t move forward if you don’t do something or try.”

4. Cyberattacks, COVID-19 and the Power of Systems

For Alsum Farms & Produce crisis came in very modern forms: a ransomware attack and then the COVID-19 pandemic.

“At 3 a.m. one morning in October, I got a call from our IT manager that we had been hit with ransomware,” Wendy explains.

She explains recovery from the attack required all hands on deck, multiple external experts and months of work to protect traceability and keep product moving. The aftermath included layered backups, new server and email security, user training and an ongoing relationship with cybersecurity and insurance professionals.

Just months later, COVID-19 hit. With 90% to 95% of their business retail-focused, the Alsum team quickly formed a COVID-19 response group, redesigning workflows to keep employees safe and shelves stocked.

The sisters say one key result from COVID-19 was when another supplier faltered, the Alsums were ready to step up for a major retailer — turning crisis into opportunity.

5. Relationships as a Strategic Asset

Beyond capital and land, the panel underscores the value of relationships — with peers, competitors and buyers.

Edward, Payne and Rabou maintain a group text, often used when one of them is wrestling with a big decision.

“Have people in an industry that you can trust and communicate with,” Edward stresses. “There’s been days they’ve literally had to walk me off a ledge when I’m trying to figure out how to make a decision.”

In the potato and produce world, Heidi says, competitors often become collaborators when the chips are down.

“The nice thing about the potato industry and the produce industry in general that we’ve experienced is that it’s been very collaborative,” she explains.
Rabou adds he sometimes sells grain below top price to maintain long-term relationships and outlet security.

“Those relationships to me are more important than making the dollar in the moment,” he explains.

His broader warning to producers is to stop comparing your operation to your neighbors’.

“You really have to determine what works good for you as an individual, you as a couple, you as a business,” he stresses. “Stop paying attention to what everyone else is doing.”

The Bottom Line from Top Producers

Across all their stories, the panelists echoed a few core principles:

Know your numbers but also know your values.
Act in crisis — don’t let fear make the choice for you.
Be willing to pivot, even away from something profitable, if it no longer fits your life or strategy.
Invest in appreciating assets and in relationships, both of which can pay off long after the crisis has passed.

In short, risk in times of crisis isn’t just something to endure; handled intentionally, it can be the turning point that reshapes a farm for the better.

One Farmer's Idea to Avoid Yellowstone Drama When Transferring the Family Farm

Tue, 25 Nov 2025 15:15:23 GMT

At 8 cents a pound, pigs weren’t worth much when Todd Wiley formed Interstate Swine LLC with his dad in 1998. Nobody wanted weaned pigs. Facilities quickly became available as people left the pork industry. With a sincere desire to make a living raising pigs on his family’s farm, Wiley stepped out in faith. Nearly 30 years later, this multi-generational farming endeavor in eastern Iowa has survived some of the toughest times and some of the best times.

Maybe that’s why Wiley has taken a unique approach to bringing the third generation back to the farm.

“There’s no doubt that family is important to Todd,” says Pat McGonegle, CEO of the Iowa Pork Producers Association. “He puts family first, and the farm is a part of that discussion. He manages his family members that are part of that farm in a real professional way, but also with an eye towards the legacy that he and Denise want to leave on their farm.”

Would This Be Good For My Kids?

Growing up, Wiley’s parents talked about succession planning often with their three sons. The concept of planning for the generational transfer of the family farm came naturally to Wiley.

“When we started Interstate Swine, we needed to hire employees,” he says. “One of the things I was conscientious about was making sure the employment opportunity within our business would be conducive to our children filling those roles.”

From the beginning, Wiley instituted health insurance plans, matching IRA funds, paid time off, paid vacation, and other benefits that employees would typically look for when securing a job.

“I constantly asked myself if this would this be good for my kids someday?” he says.

Wiley and his wife, Denise, have four kids: Drew, a Kansas State University animal science graduate and former K-State Football defensive tackle; Isaac, an Iowa State University agribusiness graduate now employed with Ever.Ag; Emma, owner of Auntie Em’s - Event Florist and attended Des Moines Area Community College; and Joshua, a junior at Iowa State University in animal science.

In 2017-2018, the Wileys doubled their sow farm to create more opportunities for the children to have a place on the family farm.

“It was a fairly tedious process – not only from a business standpoint, but about what the next generation was going to do,” he says. “They were all too young back then, and there was no way I could ask them for any sort of commitment to our business. But I did ask a lot of professionals. I remember asking our accountant specifically, ‘In your experience, what is the likelihood of a farm family having the next generation be involved, providing you have a viable business?’”

The accountant’s response was, “It’s pretty high.”

“Denise and I knew we needed to have some economies of scale,” Wiley explains. “There’s not much point in succession planning, if there’s nothing to succeed to or succeed with. We were mindful of that when we moved forward. Now, we have room for additional people, not only for labor, but also in management where we can utilize their skills.”

No Yellowstone Drama Here

As a family, it is easy to recognize each other’s strengths as well as quirks, he points out. But he wanted a better way to evaluate his children’s strengths and weaknesses, as well as interests, on the farm.

“I remember when a successful family in eastern Iowa, with a number of businesses, built a feed mill and elevator,” Wiley shares. “The father of this family passed away unexpectedly. Come to find out, nobody in the family had any interest in this feed mill and elevator, so they end up selling it.”

This hit Wiley hard. What would his kids say about where their farm was investing capital? That sparked the construction of a succession planning instrument for the Wiley family.

(Lori Hays)

“The first page of the instrument (an Excel document) started two years ago with a list of 35 jobs that need to be done on our farm,” Wiley says. “Most of them are pig related, but we do crop farm some. It was pretty much everything I was doing in a spreadsheet.”

Each of their children (and one daughter in-law at the time) was asked to rate those 35 jobs from one to five under this scenario: It’s 2033 and Todd and Denise are serving in an advisory role only. You choose to be an active employee of the family businesses. Please answer by circling the corresponding number that best describes your interest in the listed activity.

“It was interesting to see who had interest in what, but it also told us pretty clearly where we needed to go in the future if we wanted our children involved in our business,” Wiley says. “Initially, I think they saw it as a fun activity, just another of Dad’s crazy ideas. But I learned a lot.”

This past summer, the family completed the exercise again.

“I needed to see if the kids were drifting in their interest,” he says. “In one case, there was significant movement in what one of our kids wanted to do. It surprised me to be truthful about it. In the other three cases, they held true to what they thought two years previous. But bear in mind, our youngest was a freshman in college two years ago and a lot can change in college.”

Wiley emphasizes that nobody is required to come back and be involved in the operation. He says there are a million ways to make a living out there and he wants his kids to pursue their dreams. In the version his family filled out in the summer of 2025, he added a second page with 45 statements.

“If you’re going to work with people in a business and a family in any organization, even if you’re not related, you need to have some idea of where they’re coming from,” Wiley says. “On the second page of statements, they were asked to rank their level of agreement with the statement.”

For example, one of the statements was: No matter what I may think of a family member’s job performance, I’ll always have their back publicly.

“If you’ve ever watched Yellowstone, that show creeped me out,” Wiley says. “When I saw the family dynamic portrayed, it made me uncomfortable. We can have our disagreements. But, as a family, you better have each other’s backs out in the community, especially in the business we’re in.”

Getting Out and Getting In

This instrument has been helpful for the Wileys in many ways as they prepare to transfer more of the farm to their children.

“It sheds light on areas where their belief system parallels ours,” he says. “We have a definite place of emphasis now. Our children have a pig feeding business called Fourth Gen Hogs LLC, where they’re each 20% owners, Denise is a 10% owner, and I’m a 10% owner. It has been a great exercise in giving them the responsibility of ownership.”

He says the timing mirrors the situation he was in when Interstate Swine was formed.

“They got in about a year ago when it was pretty doom and gloom. We went to the bank with this idea, and they’re like, ‘You want to do what?’”

He believes this business venture will be the vehicle for he and his wife to exit pig ownership as their children get into ownership.

“Uncle Sam would have his way with us if we sold out all at once,” Wiley says. “But if we can gradually exit individual barns or individual parts of our production flow and have them enter into it, that’s a fairly nice segue for us to get out and them to get in.”

Wiley shares more about his mini adventure raising rabbits, opportunities for talented young people back on the farm and the message he hopes pork producers hear right now and more on The PORK Podcast. You can watch it here on YouTube or listen anywhere podcasts are found.

Watch more episodes here.

Oikonomia on the Farm: Succession Planning is About More Than Wealth

Thu, 20 Nov 2025 14:57:19 GMT

Succession planning is often treated as a legal or financial exercise — a “simple” matter of wills, taxes and transfer dates. Yet for family-owned farms and agribusinesses, it’s something deeper: the deliberate handoff of a way of life.

The ancient Greeks had a word for this kind of management, oikonomia, from which we get the term economy. Understanding what they meant by it can reorient how families think about preparing the next generation.

In classical thought, oikonomia referred to the management of the oikos, the household or estate, but it was never only about efficiency or profit. The oikonomos, or household steward, was responsible for using resources wisely so the entire household could live well and endure long into the future.

Ancient philosophers viewed resources as abundant, not scarce, so economic action was judged not by the accumulation of wealth but by whether it enabled and served a praiseworthy end. Specifically, the flourishing of the family, the land and the community.

Perspective for the Present

That older vision aligns closely with what succession planning should be for agriculture. The task is not just to pass on land and assets, but to ensure the continuity of stewardship, the ethical responsibility to care for what has been entrusted.

From an oikonomia perspective, the senior generation’s goal is to prepare successors capable of managing abundance with restraint, gratitude and wisdom. This calls attention to the education of character. The next generation must learn more than production and finance; they must learn judgment, the ability to distinguish needs from wants and to act for the common good. Mentorship, gradual transfer of responsibility, and open discussion of values all form part of this ethical training.

Perhaps most importantly, oikonomia reminds us that a farm is both a business and a household. Financial plans that ignore family dynamics or the moral vision of the enterprise risk undermining the very legacy they seek to protect.

Succession planning works best when it integrates three elements at once: the technical (who owns and manages what), the relational (how the family communicates and cooperates) and the moral (why the farm exists and whom it serves).

In that light, passing the farm to the next generation becomes not just a transaction but an act of stewardship — a modern form of oikonomia. The question is no longer only how do we divide the assets but how do we preserve the household, the land and the purpose they represent for future generations?

Plan for Now, Adjust Later: Create Your Estate Plan Before It's Too Late

Wed, 22 Oct 2025 13:55:52 GMT

Nobody wants to think about death, but it’s something Polly Dobbs, an estate planning and wealth transfer attorney with Dobbs Legal Group LLC, thinks about every day.

“When I was a new lawyer, I was so nervous to say dead or death,” Dobbs recalls. “I was in a meeting with a partner and his client once when I stumbled over something and said, ‘in the unfortunate event you should pass away.’ After that meeting, the partner yanked me out in the hallway and said, ‘Stop stuttering. Just say when you die. It’s not if, it’s when.’”

She’s been dealing in death ever since, but she says that perspective allows her to serve her clients better.

“What if you got hit by a bus tomorrow?” Dobbs asks. “You should have a plan in place that fits today’s circumstances. If your grandson is playing with John Deere toys in the sandbox, let’s not create a succession plan that hinges on that grandson coming back to farm. Let’s have a plan in place that fits right now, in case you die tomorrow. If you don’t die and you get to see how those grandkids turn out and which direction their lives take, you can adjust that plan.”

People often think they can figure out their estate plan later – when they are older, richer, sicker, free from debt and the list goes on.

“Too often, people don’t have a plan, and they end up dying before they’ve got it just how they want it,” Dobbs says. “Have something that fits for today and dust it off as needed.”

What Should Drive Decisions?

When it comes to estate planning, Dobbs says there is no cookie-cutter-approach.

“You can’t copy what your neighbor did,” she says. “It has to be customized for your family, your facts, your assets, your goals, your family members and your farm.”

She often challenges farmers with tough questions like should your off-farm kids get bought out?

“Should they get bought out of equipment, improvements, grain bins, shops, shed and all of the silver things that we build on top of gravel lots to use in production agriculture?” she asks. “Do you feel like your off-farm heirs are entitled to a share of these operating assets? If so, fine. If not, that’s OK, too.”

Part of what Dobbs does is give permission to people to treat their children differently and to define their children’s inheritance.

“It’s not necessarily one quick check after an auction after your funeral,” she points out. “It is absolutely fine to treat your children differently. I preach over and over again that fair does not mean equal. There is no law that says the columns for your children must tally to the penny and be exactly equal with the assets they receive at your death. You’re aiming for a fair balance, and you define what is fair.”

Ultimately, she says, it comes down to peace of mind when you lay your head on the pillow. Do you have a fair plan in place?

Talk Now, Don’t Wait

Communicating the estate plan during your lifetime is very important, but it’s often the step that farmers fail to complete. She says transparency helps avoid entitlement.

“When someone thinks they’re going to get a certain amount of the value of your assets, they’re already calculating it and counting on it,” she says. “After your death, if the plan is different, that’s when the entitlement rears its head.”

She emphasizes the details must be defined by the farmer.

“A lot of my clients would rather put their head down and have the plan unveiled after death,” Dobbs says. “I understand that’s challenging. But it’s far better to have transparency and throw everything out on the conference room table so you can shine a light on it and talk about it.”

In addition to getting all the family in the room, Dobbs believes there should be more than one adviser at the table at a time.

“This is how you get the best plan, and you will always have a better plan if your advisers speak to each other,” she adds. “There is this falsehood out there that you need to stop your lawyer from talking to your accountant because that means they’re both charging you at the same time. I promise it will always be cheaper in the end, and a better plan, if your advisers talk to each other.”

Touchy Subjects

One of the sensitive subjects many farmers are dealing with today is the issue of sweat equity and treating it like deferred compensation, she says.

“When we have a successor coming in, depending on how long that successor has been working side by side with the senior generation, they’ve earned something,” Dobbs says. “We’re not talking about giving them a handout. If we give them a discounted price, or we give them assets off the top as a part of the succession plan or part of the estate plan, that’s not a handout.”

Deferred compensation says that if a young person had gone to work in a factory right out of school, they would be earning and investing in a 401K or perhaps stock compensation. They probably would have health insurance and HSA accounts that most family farms just don’t have, she explains.

“When the senior generation is putting together their succession and estate plan, consider the benefits the successor gave up by not working off farm,” she says. “Having some sort of benefit, discounts, family-friendly terms in the succession plan and in the estate plan should be considered deferred compensation.”

Read More:
Tax Acts and Estate Plans: What You Need to Know About the Changes for 2026

Tax Acts and Estate Plans: What You Need to Know About the Changes for 2026

Fri, 17 Oct 2025 16:46:28 GMT

Taxes don’t destroy family farms – people do, says Polly Dobbs, an estate planning and wealth transfer specialist.

“It’s not Uncle Sam – it’s your third wife and your kids from your first two wives, it’s your kids in the city versus your kids on the farm, and it’s ultimately your failure to plan for all that because you don’t want to hurt somebody’s feelings,” she explains. “It’s very lazy to say that taxes ruin the farm. That’s rarely the case.”

All the details matter, says Dobbs with Dobbs Legal Group LLC. She doesn’t believe in sugarcoating the hard truth. That’s why she’s devoted her career to helping farm families navigate estate planning and wealth transfer.

A “Permanent” Estate Tax

On July 4, President Donald Trump signed into effect the One Big Beautiful Bill, which has a significant effect on federal taxes, credits and deductions.

When it comes to gift and estate taxes, Dobbs points out a big change under the Internal Revenue Services (IRS) section.

“The new exemption as of Jan. 1, 2026, will be $15 million per person, or $30 million for a married couple,” she said at the Keystone Cooperatives Co-op Classic in Valparaiso, Ind. “It is one exemption. You either use it during your lifetime to make gifts, or you have it available at death to shield inheritances. You don’t get two.”

This is an increase from $13,990,000 per person in 2025, and a welcome relief from the anticipated “drop off the cliff to around $7 million per person that was looming,” Dobbs adds.

Unlike the Tax Cuts and Jobs Act from 2017, she says the exemption is considered permanent in that it doesn’t have a “self-destruct, sunset date.” However, she warns farmers not to get too excited about the “permanent tax act” because any future Congress and President can change any law on the books.

The new exemption will be indexed to inflation, she adds, and with adjustments made Jan. 1 every year beginning in 2027. IRS recently announced the tax year 2026 annual inflation adjustments for more than 60 tax provisions, including the income tax rate schedules and other tax changes. The annual gift tax exclusion will remain $19,000 in 2026, unchanged from 2025, which is the amount each donor can give to each recipient, without tapping into his or her big exemption.

“During the fourth quarter of every year, we’ll get inflation numbers, and we will know what the new exemption is going to be the following January,” Dobbs says. “It is nice to know there’s no ticking clock on this tax act. We can stop worrying about this dreaded sunset that was to happen at the end of 2025. The fact they got ahead of this and did it in July of 2025 is a gift.”

Dobbs has been working in gift and estate tax laws for 25 years and says there has never once been a permanent tax act.

“This is important information,” she says. “But that’s the caboose. It is not the engine that should be driving the decision making about the farm’s succession and estate planning. Family goals come first.”

4 Key Stressors that Keep Farmers and Ranchers Up at Night

Tue, 26 Aug 2025 18:47:03 GMT

Do you ever think that you might be the only one who worries about their farm? It might be useful to recognize that other people have worries too and that they can be strikingly similar to your concerns.

Over the past several months, we have been collecting data from farmers and ranchers in four states spread across the country to better understand the factors that cause stress and how they view risk in their operations. The data were gathered from one-on-one interviews where producers were asked to characterize their daily lives on the farm, goals for themselves and their business, and how they perceive the stressors and risks that they face.

The key question asked of all the producers was, “What keeps you up at night?” The answers differed based on the commodity produced and the area where they lived, but there were several themes that arose, revealing common stressors:

Uncertainties regarding farm succession and the farm/family balance – the future of the farmland and farm operation passing from one generation to the next, plus the health and well-being of the family.

“Communication around succession planning, I think, is sometimes a rock wall.”

The long-term social and familial sustainability of the farm operation is a key stressor for producers. This stress includes anything from communication with family members on short-term management decisions to long-term strategy and succession planning.

Talking to family about issues, small and large, can be stressful and is often avoided, risking further complications down the road. Additional issues that were addressed by the participants in the interviews included concerns about life-altering injuries, how to take a break from the farm when you are a one-person operation, to name a few.
Concerns over the reputation of agriculture and their specific farm, both in the local community, the broader industry, and society at large.

“What does [the future related to ag] look like and what’s my role in that?”

Farmers care deeply about producing a quality commodity product and being valued members of the community. As urban centers grow in rural states, farmers express concerns about land affordability and the public’s lack of understanding about the role of agriculture in their community. Producers also expressed that it is stressful to see the way the industry is portrayed at times in the media.
Unpredictable events— this includes weather changes, extreme weather, natural disasters, crop failures, herd or flock problems, excessive market fluctuations, etc.

“Drought. (laughs) Like that’s just the reality now.”

For many producers, they view these unpredictable events outside of their control as central factors in daily and long-term stress. The view that weather is a primary source of risk and unpredictable stress didn’t appear to be mitigated by insurance products or government payments. Rather, it is a constant that farmers have little control over and often worry about.
Difficult farm management choices – making the daily and long-term strategic decisions that impact the financial viability of their farming operation.

“Every input’s up – diesel, seed, fertilizer – you name it.”

Rising costs necessitate producers making new farm management choices, resulting in new stressors related to finances and viability. These include, but aren’t limited to, management choices related to labor, interest rates, maintaining production contracts, or losing or expanding landholdings.

Many farms, no matter their size or stage of life, deal with tough management choices related to financial viability, sometimes many at one time.

Of note is that these four key stressors are both daily and long-term. Recognizing that farmers and ranchers often have these stressors in common helps to put in perspective the everyday challenges of agriculture. For those supporting the farming industry through education and policy making, it prioritizes the need to help farmers understand and use risk mitigation products and programs to help manage stress on the farm.

— article by Gracen Bridges, Kelli Russell and Mykel Taylor, Auburn University

Overcome the No. 1 Challenge in Passing Down Your Family Farm

Mon, 30 Jun 2025 19:38:38 GMT

Between now and 2048, about $124 trillion is expected to exchange hands from older to younger generations in the U.S., according to Cerulli Associates, a Boston-based market research firm.

For perspective, that dollar amount is approximately five times the size of the 2023 U.S. Gross Domestic Product (GDP), which totaled $27.72 trillion.

How will farmers fit into what many people are calling the “Great Wealth Exchange” over the next two decades? Much of it is specific to land, according to the American Farmland Trust (AFT). It predicts 300 million acres of U.S. agricultural land will change hands in the next 20 years.

Based on $5,000 an acre for farm ground, Paul Neiffer, the Farm CPA, estimates that would be a transfer of between $1.5 trillion and $2 trillion in land from older farmers to younger generations.

“If you throw in rangeland, that’s another trillion, so $3 to $4 trillion at most is where I think we’re at,” Neiffer says.

The Reason Succession Often Fails

A common issue is that while 69% of farmers plan to transfer their operation to a younger family member, only 23% have a plan , according to AgAmerica Lending LLC.

But the No. 1 issue that trips up people in the succession planning process is most people – farmers included – focus more on the mechanics involved in transferring assets than on keeping their family relationships intact.

That’s according to Amy Castoro, CEO and president of The Williams Group, a family coaching and consulting organization. Her firm does relationship planning to help family members make sure they’re still speaking to each other after the wealth transfers.

Many times, she says, the friction in the transfer of wealth has little to do with money and material goods and a whole lot more to do with whether the family members involved felt loved.

A Formula For Success

The Williams Group did a 20-year field study and from that developed a formula for how people need to focus their time and energy in the succession process.

The company recommends spending:
60% of your time on building family trust and developing good communication practices;

25% preparing your heirs to take over the operation, laying the business and fiscal groundwork for the farm to continue under their leadership;

10% of your time getting on the same page about your family’s values and having a family mission;

5% of your time on the estate planning mechanics, the nuts and bolts of how the assets will transfer.

In addition, The Williams Group advises that you work with your heirs to:

Strike a balance between control and collaboration.
Embrace the next generation’s perspectives.
Bolster intergenerational solidarity.
Embed high-trust behaviors.
Co-design standards for readiness.

Start The Plan Sooner, Not Later

If you want to see your farm succeed with the next generation of family members, make sure you have the right structure in place – and set it up sooner than later. Don’t put it off, Neiffer advises.

Once you have a plan in place, you have a tool you can modify to fit what your family and farm need over time.

“Having a plan in place can help alleviate stress, even if things change down the road,” Neiffer says. “Keep in mind that farming is a dynamic business and your plan needs to be, too.”

Your next read: Big Questions Remain For Next Gen Farmers

5 Steps to Successful Transition Planning

Fri, 13 Jun 2025 14:43:50 GMT

“It is not fun thinking about dying,” explains Tiffany Lashmet, Texas A&M AgriLife Extension ag law specialist. “It is not fun having to make these decisions. Nobody wants to hire a lawyer. But we do this because we want to keep adding generations on our shoulders.”

Lashmet was a featured speaker during the 2025 Beef Improvement Federation (BIF) Symposium June 10 in Amarillo, Texas.

“If you are 18 years or older, you need to be thinking about an estate plan,” she stressed to attendees during the young producer symposium.

Her presentation focused on the critical importance of estate and succession planning for agricultural operations. She emphasized the process is crucial for everyone 18 and older, regardless of their current assets or family situation.

She shared five key steps to successful transition planning:

Create a “Flight Plan”
This is a comprehensive folder containing essential information someone would need if you were to pass away.
It should include details about:
- Financial accounts and investments
- Insurance policies
- Bank account information
- Debt and payment schedules
- Legal documents
- Asset lists
- Business contracts
- Contact information for key professionals
Determine Your Goals
This step involves having open, honest family conversations about the future of the farm or ranch.
Key considerations include:
- Each family member’s desires
- How to divide assets fairly
- Potential conflicts between heirs
- The financial viability of supporting multiple families
- Potential long-term care and Medicaid needs
Develop a Business Succession Plan
- Assess the next generation’s skills
- Create opportunities for younger family members to gain experience
- Consider business structures like LLCs that can facilitate smooth transitions
- Develop a plan for who will manage the day-to-day operations

“If your kids don’t get along now, leaving them the ranch together is not fixing it,” Lashmet points out.
Prepare Essential Legal Documents
She lists four critical documents:
- Will: Specifies how property will be distributed
- Advanced Healthcare Directive: Provides instructions for medical treatment
- Medical Power of Attorney: Designates someone to make medical decisions
- Durable Power of Attorney: Allows someone to make financial decisions
Draft and Implement the Plan
Lashmet recommends producers work with professional legal and financial advisers. She also stresses the importance of reviewing and updating documents annually making sure beneficiary designations are current.

Lashmet shared these alarming statistics: “Only 12% of businesses survive transfer from the first generation to the second. From the second to the third, it’s around 9%. From the third to the fourth, it’s 3%,” she says.

Preserving family legacy and building upon the work of previous generations is why estate planning is so important. By planning carefully, families can ensure their operations continue smoothly across generations and maintain the knowledge, traditions and land that have been cultivated over time.

To learn more about this topic, Lashmet authors a “ Texas Ag Law Blog ” and hosts an “ Ag Law in the Field ” podcast.

Your Next Read: How to Find Peace During Generational Transitions

How to Find Peace During Generational Transitions

Thu, 12 Jun 2025 11:02:22 GMT

It’s the talk every ranch family needs to have. The issue of succession planning in agricultural operations is one many try to avoid because of potential conflict and stress.

This episode of “ The Future of Beef Show ”, features Alan Hojer, a longtime ranch succession expert from the Keep Farmers Farming program. Hojer has helped hundreds of families tackle one of the toughest transitions in agriculture — passing the ranch to the next generation. He emphasizes the most important goal for farm and ranch families is finding peace during generational transitions.

Hojer explains agriculture is experiencing an unprecedented transition period. Historically, farm succession was simple — typically the oldest child would inherit the homeplace and parents would buy additional land for other children. However, rising land values and economic challenges have made this approach increasingly difficult.

In the podcast, he shares insights on why so many ranchers avoid planning, what gets in the way of productive conversations and how to turn tension into trust at the kitchen table. Here are a few important principles Hojer highlights:

Succession is not about equal distribution, but about finding peace and supporting each family member’s individual path
The older generation must be willing to share information and gradually transfer decision-making responsibilities
Younger generations should seek experience both within and outside the family operation
Gender should not be a barrier to succession
A third-party facilitator can be crucial in navigating complex family dynamics

(The Future of Beef Show)

Hojer says the first step is simply getting family members to sit down and talk. He encourages producers to begin difficult conversations casually and informally.

The key to successful succession, according to Hojer, is developing a shared vision. He stresses that vision is more important than assets, and families must work together to create a unified direction for their operation. This vision serves as a foundation for strategic planning and helps align family members’ expectations and goals.

More Than One Discussion

A critical aspect of successful succession is communication and information sharing. Hojer recommends starting these conversations early — ideally when the next generation is in their late 30s or early 40s.

He advocates for monthly family meetings that include financial reviews, allowing younger generations to understand the business’s operations and become active participants.

Succession planning is an ongoing process, not a one-time event. It requires patience, open communication and a commitment to the family’s collective vision.

Hojer notes that succession doesn’t always mean keeping the entire operation together. Sometimes, a successful transition means helping family members find their own paths, which might involve dividing the operation or transitioning to an outside party.

The Keep Farmers Farming program is a division of the South Dakota Ag Foundation that focuses on helping agricultural families navigate succession planning and generational transitions. The program’s goal is to provide families with the tools and support needed to navigate succession successfully, ensuring the continued vitality of agricultural operations.

“You always have to remember it’s nobody’s to take. It’s the parents to give,” Hojer summarizes. “And the greatest gift a parent can give is not the asset itself. It’s actually the information at a time when time is still on the side of the younger generation.”

Your Next Read: The Future of Beef Show Now Streaming on Farm Journal TV

5 Options to Consider During Farmland Transitions

Thu, 12 Jun 2025 16:30:00 GMT

Transitions are hard. It doesn’t matter what the transition involves, the nature of moving from one thing to the next is complicated. Farmland may be one of the toughest, says Steve Bohr of Farm Financial Strategies in Lisbon, Iowa.

“Farmers often believe that what differentiates him or her is their ability to own the land,” Bohr explains. “And by God, you’re not taking it away from them. A lot of times, land ownership doesn’t transfer until death, and I’m OK with that. But we’ve got to drill down and figure out how that land is going to transition from one generation to the next.”

Over the years, he’s discovered there are three fundamental areas of concern in an estate and farm transition plan that each family should independently address — cost of administration, creditor protection, and transition plans for land and operating assets.

He shares five options to consider for the transition of land assets.

1. Give the land to the farmer.
The first option is to get the land transitioned to those who are farming it or have an affinity to own it, Bohr says. Each generation cannot afford to take a step back in equity and expect to compete in today’s marketplace.

“The clear problem with that is, how are we fair to the ones who aren’t interested in farming? Every family is different,” he says.

If your family is expecting to farm the same (or more) acres with a land base that has been divided across siblings, each generation will be in a weaker position to complete. How many times will your family have to pay for the same land? Which generation will eventually lose it due to no fault of their own (other than choosing to carry on the legacy)?

2. Divide the land equally.
An undivided ownership in real estate can cause great anxiety for the owners of the land who want to farm it or who want to continue to own it, he explains. There is a greater chance of peace if you divide the land, but also a greater chance it gets away from the family.

“Most people believe this is the answer,” Bohr says. “I don’t believe that, because the problem with dividing the land is that it’s a recipe for the land to get away from us. Whether it’s divorce, bankruptcy or poor planning.”

At some point in time, the more people involved, and the more independence those people have, the land’s going to get away from you. If it doesn’t, then it has to be divided again at the next generation. By the time you divide a farm two generations, the grandkids don’t have enough to be able to farm.

“We are dividing ourselves right out of the plat book,” Bohr says.

3. Deed land into a family trust.
Leaving the land in trust after death may be a wise option for families who cannot afford to get the land to one heir and who do not want to divide their land. There are solid reasons to leave the land in trust for management, including if one or more children have marital, money or addiction issues or if one or more children are independently wealthy.

Oftentimes, leaving land in trust gives a false sense of security that may be deferring the problem to the future.

“When we leave it in trust, we’re asking for big problems. Whenever that land comes out of trust, it can be very inflexible,” Bohr says.

4. Create a family land entity.
A land entity like a Limited Liability Company (LLC) or Family Limited Partnership (FLP) has become popular for a family where the first three options do not fit.

“I call this the boomerang plan because the rules in the operating agreement of the entity always bring the land back to the family,” he says.

Those entities will have rules, and within the entities, those rules will talk about lease options and purchase options at family pricing and terms, whatever that looks like. A vast majority of them are special use paid over a 30 -year contract so they can guarantee opportunity and affordability for family members.

5. Develop a hybrid plan.
There is not one plan that fits all families. That’s why a combination of multiple options sometimes works best for most families. A hybrid plan gives everybody an opportunity.

“Right now in succession planning, I think we have to give a huge amount of understanding to what will or won’t cash flow,” Bohr says. “What are the tax ramifications? What is the timing of the transition? And are we going to give an adequate opportunity to those who are going to be that next generation in our communities, paying taxes, going to churches, going to schools?”

Your Next Read: How an Iowa Family is Passing on the Farm from One Generation to the Next

It's Time To Lead: Strong Succession Won't Happen By Accident

Wed, 11 Jun 2025 18:38:24 GMT

Succession planning isn’t just a checklist item — it’s a defining leadership moment. As a farm or ranch owner, it’s time to stop waiting for the “right moment” and start leading with purpose. You’re not just passing on assets; you’re shaping the future of your operation. That means stepping into the role of leader with clarity, courage and commitment.

First, take a hard look at what kind of leader your farm needs. Are you focused on daily operations or vision and growth? Are you modeling strong financial discipline and decision-making? Are you addressing conflicts head-on and keeping your family aligned? Leadership requires more than technical skill; it demands the courage to tackle tough conversations, whether with partners, successors or family members. Great leaders don’t shy away from discomfort; they lean into it with the goal of building stronger relationships and a more resilient operation.

Communication is foundational. If your team doesn’t know what’s happening, how can they help move forward? Hold regular family meetings, define decision-making roles and ensure everyone understands their responsibilities. Avoiding conflict only leads to confusion. Structured, transparent communication builds trust and keeps succession planning on track. Communication is also how you build buy-in from the people who will carry your operation forward.

Leadership Isn’t Handed Over

Next, you must actively develop your future leaders. Don’t wait until you’re ready to retire to begin mentoring. Give your successors meaningful responsibilities now. Let them learn by managing projects, participating in financial discussions and handling day-to-day operations. Leadership isn’t handed over — it’s earned through real-world experience and demonstrated commitment. Every season serves as an opportunity to develop those skills and test readiness.

Set clear standards for advancement. Define what success looks like: required experience, education and financial knowledge. Make sure successors understand what it takes to lead and hold those leaders accountable. If someone isn’t ready or is unwilling to step up, be honest. Your farm’s legacy deserves strong, prepared leadership.

Succession planning is hard. Many families stall out due to fear, conflict or lack of clarity. But real leaders don’t quit when times get tough, they face challenges head on. If your planning has gone off track, reset. Re-engage your family, bring in outside support if necessary and commit to consistent action.

The future of your farm depends on your leadership today. Will you linger in uncertainty, or will you lead with confidence? Strong succession isn’t going to happen by accident. It’s driven by leaders who are willing to plan boldly, act decisively and invest in their next generation. Your family and your operation are counting on you. Be the leader they need.

Your Next Read — Quiet Crisis, Unfolding Rapidly: Big Questions Remain For Next Gen Farmers

The Future of Beef Show Now Streaming on Farm Journal TV

Tue, 10 Jun 2025 16:31:59 GMT

Connecting people and ideas that are shaping the future of the cattle industry, “The Future of Beef Show” is a podcast hosted by Jim Johnson of Brands and Barbed Wire , Ian Wheal, CEO and founder of Breedr , and Jessica Sperber, University of Nebraska feedlot specialist. Alongside an inspiring lineup of guests, they share stories from the forefront of modern beef production and show how technology and data can make all the difference — while staying true to the values that define the beef industry.

Drovers is now “The Future of Beef Show’s” official media partner. This week, episodes one through five are available on Farm Journal TV , Farm Journal’s YouTube channel and Farm Journal NOW with new episodes dropping biweekly starting June 17.

“Partnering with Drovers brings our shared vision for the future of American beef to the largest stage,” Wheal says. “Their deep trust with producers and commitment to progress make them the perfect media partner for The Future of Beef Show. Together, we can amplify the smartest ideas, most practical tools, and progressive voices shaping the next generation of cattle production — ultimately helping more ranchers turn data into decisions and decisions into dollars.”

Backed by Farm Journal’s tradition and engine, Drovers’ robust digital, print and broadcast footprint provides the beef industry with news, analysis and insights. Established in 1873 as the Chicago Daily Drovers Journal, it is recognized as the nation’s oldest livestock publication.

“What excites me most about this partnership is the chance to reach more cattlemen and women who care deeply about doing things better — for their animals, their land and their bottom line,” Johnson says. “Drovers gives us a bigger megaphone to share real-world stories and tools that can help every operation thrive.”

Drovers’ comprehensive coverage of the beef industry includes market trends, production practices, health and nutrition, technology and policy developments. Drovers’ mission is to help ensure a thriving and efficient beef industry for generations to come.

“We’re going to tackle the big topics like genetics, sustainability and supply chain innovations,” Sperber explains. “But don’t worry — we’ll cut through the corporate speak and show you the real opportunities available right now for every size of beef producer —big or small.”

Episodes currently available on the Farm Journal platforms are:

Episode 1: A New Era of Connected Beef
Lamar Steiger, co-owner of the 808 Ranch and Ranch to Retail, shares his insights on where the industry is headed and what it means for producers.

Episode 2: Individual Animal Management – Beating the Bell Curve
John Schroeder, general manager of Darr Feedlot in Cozad, Neb., shares his insights on optimizing a cow herd beyond the averages.

Episode 3: Genetics – The Foundation for Consistent, High-Quality Beef
Troy Marshall, American Angus Association’s director of commercial industry relations, explores how genetics can help producers make smarter breeding decisions and maximize herd potential.

Episode 4: Genomics – Unlocking the Potential of Your Herd
Nick Jorgensen, CEO of Jorgensen Land & Cattle, discusses how genetic selection drives profitability and consistency in beef production.

Episode 5: Succession with Alan Hojer
Alan Hojer, a longtime ranch succession expert who’s helped hundreds of families tackle one of the toughest transitions in agriculture, covers passing the ranch to the next generation. He shares hard-earned insights on why so many ranchers avoid planning, what gets in the way of productive conversations and how to turn tension into trust at the kitchen table.

Learn more about The Future of Beef podcast at FutureofBeef.com .

Your Next Read: Exploring Next-Generation Phenotyping that Drives Commercial Profitability

Tick Tock: How Long Do You Need For A Successful Transition?

Tue, 10 Jun 2025 16:00:00 GMT

How do you know when it’s time to start transitioning your operation to the next generation? Rena Striegel, president of Transition Point Business Partners, says to aim for a decade.

“If we’re lucky, we’ve got that long. Sometimes we don’t, though,” Striegel explains. “Sometimes things happen and we have to move much quicker than that. An illness can escalate transition quickly. A disagreement can go from ‘We’re all good’ to ‘We’ve got to fix this right now.’ And sometimes lack of planning can cause an extremely difficult situation – particularly if someone wants to exit quickly.”

She says the fastest succession plan she has ever seen executed from start to finish was six months.

“That was so painful, I cannot even begin to describe how difficult that was to get four brothers to agree on a plan and ready to execute in six months when the first one wanted to be out,” Striegel says. “We did it, but only because that farm family really sat and hung in there. If one of them had lost his patience or his temper, that whole thing could have blown sky high.”

Striegel compares the timeline of your succession plan to landing a plane.

“Think about those flights where the runway is really long. The plane comes in, it touches down nicely, and it just comes to a stop, right? It’s nice and gentle. No problems,” she says. “If you think about those landings where it’s stormy, or the runway is short, they’re a little scary, they’re really abrupt, they’re very stressful, and they can kind of hurt. So, we want to give as long of a runway as possible to give everybody a chance to ease in.”

The 10 years you ideally have are broken down into this timeline:

Years 1-2: Assemble your professional team and make some of the biggest decisions. Understand your entities and reorganize assets if necessary. Update your documents.
Years 3-4: Work with the next generation to get them ready for the roles they will have. Practice good communication and iron out dysfunction.
Years 5-10: Begin actual transition of ownership.

What comes first during that ownership transition process will vary.

“Sometimes it’s operational first. You’re allowing successors to make some of the operating decisions. Then maybe it’s some of the financial decisions, maybe it’s marketing decisions, maybe it’s buying inputs, maybe it is selecting vendors. Maybe you’re letting them negotiate for equipment,” Striegel says. “Whatever it is, you’ve got to figure out what the timeline is to take things off of your plate and put it on to them, and to be really clear about that, so that we can develop successors in the right way.”

Transitioning relationships is also an important piece of the puzzle.

“When do you turn over the relationship with your banker? What about your lawyer or your CPA? When and how do we get that next generation involved in those conversations?” Striegel asks. “If we don’t transition relationships, what happens is the next generation has no relationships with the people that have been serving your family for however many years and when you’re done, so are they.”

She says there won’t always be a finite end date on the transition, but it’s important you feel confident about the progress.

“The main thing is to say, ‘Over this period of time, I’m going to start working with you to take this over’, make sure you spend time doing that, and then let it go with oversight,” Striegel says. “I always like to say, ‘You watch me do it, I’ll watch you do it and then you do it on your own.”

Bloodlines and Bottom Lines: Navigating Family and Finances on the Ranch

Thu, 29 May 2025 11:05:07 GMT

Farmers and ranchers face a multitude of challenges and threats to their operations each day—some more impactful than others. But when we step back and look at the American family ranch, what is the greatest threat to that legacy?

According to Dave Specht, a family business and continuity expert, the answer is mismatched expectations across generations.

“Unless a family is clear on their purpose and where they desire to go, everything else is irrelevant,” Specht says. “When families don’t take the time to become clear and transparent about where the business should go, it results in wasted time, money and even relationships.”

So, how can different generations find clarity in the direction of the business? It starts with transparency and communication.

“One of the gaps I see in farm and ranch families is a lack of understanding across generations about finances,” Specht says. “If a family doesn’t understand their financial status, they should not invite the next generation back.”

The rising generation needs to understand the realities of risk so they can think and act like owners—before they ever become owners.

In addition, each generation must remain curious and open to the ideas and desires of the other, especially when adjusting business goals and models.

“Most operators don’t even realize they have a choice,” Specht explains. “They look at the operation and think they need to keep scaling, but eliminating some things might actually be better for the business and the family.”

Navigating change in a family business is rarely easy, but sometimes the past offers helpful perspective.

“Ultimately, families will have to change and innovate to continue through shifting market conditions and challenges,” Specht says. “One way I help families accept upcoming change is by looking back at the beginning of the business—to serve as a reminder of how much innovation has already happened.”

Creating clarity and aligning expectations isn’t just about setting business goals—it’s rooted in strengthening family relationships.

“Too few families are invested in family continuity as equally as business continuity,” Specht says.

Building those relationships looks like spending time together in non-working environments and simply having fun. Generational empathy and curiosity are also key, as they help each generation understand the other’s values and struggles.

Each generation brings its own experiences and expectations. The founding generation often went without and assumes the next should do the same. But second and third generations, removed from the early struggles, may seek a more balanced approach to life.

“Rising generations are wanting more of a balanced approach to life, which can create friction,” Specht says.

That friction can be eased by practicing empathy—putting ourselves in one another’s shoes and asking better, less self-centered questions.

“Lead with empathy and look out for the other person, with the main goal of preserving the family relationship,” Specht says. “The bigger family purpose is greater than individualistic needs.”

This means the younger generation should also recognize and respect the retirement needs of the senior generation—and all they’ve endured to build the operation.

Specht encourages the rising generation to reflect on the following questions:

What are the financial needs and lifestyle expectations of my individual family unit?
Do I really want to operate on the same land, or do I want the same upbringing and community for my own children?
What skills and talents do I offer the family business—or to any business?
Am I willing to take on the debt of the family business?

Taking the time to honestly consider these questions can lead to new insight—and potentially new opportunities.

“It may be the biggest opportunities are not within your family right now,” Specht explains. “There could be a neighbor or area farmer without children to pass the operation to. Or your talents may be better utilized elsewhere—for now.”

Whatever the direction, one thing is clear: Everyone should be part of these conversations—especially mothers.

“Matriarchs are the difference between success and failure in family and business continuity,” Specht says. “They are the story keepers and shape how children view the operation. They are the most invested in family dynamics too. When people don’t make plans with the mothers fully involved, I’m skeptical it will work.”

There is no silver bullet for passing down a family business, but investing in family relationships is a strong place to start.

“If you want to preserve your farm or ranch, you need to work on family relationships first,” Specht says.

Listen to the full conversation on the Casual Cattle Conversations podcast. https://www.casualcattleconversations.com/casual-cattle-conversations-podcast-shownotes/dave-specht

Your next read: 12 Steps for a Successful Succession Plan

Long-Term Care: Affording it Without Losing the Farm

Tue, 22 Apr 2025 10:45:05 GMT

Long-term care (LTC) is expensive, unpredictable and often not covered by programs like Medicare. For farmers who’ve spent a lifetime building an operation and want to pass it on, the rising costs of LTC present a real financial risk to the land, the farm business and the legacy.

How do we pay for long-term care without losing the farm? This question is one many farm families worry about.

“It’s one of the most common — and important — questions farm families ask when thinking about the future,” explained Robert Moore, Ohio State University Agricultural & Resource Law Program Attorney, in a recent release distributed by Ohio State.

Moore shared these facts about LTC costs and strategies:

The growing risk of LTC
Once upon a time, estate taxes were the biggest financial threat to the family farm. Today, that’s no longer the case. With higher federal estate tax exemptions, few farms owe estate taxes anymore. The real financial threat now? LTC costs.

LTC includes a wide range of services — from home-based personal care to skilled nursing facility stays — and most of it isn’t covered by Medicare. These services help people with chronic illness, disability or aging-related conditions. For example, assistance with dressing, bathing, eating or even just getting around. Care might start at home and eventually move to a facility. Costs vary by setting and service, but they add up quickly.

Here are a few important facts to help understand the implications of LTC on farming operations:

69% of people older than 65 will need some form of LTC.
Average LTC lasts about three years, with women needing slightly more (3.7 years) than men (2.2 years).
20% of people will need care for more than five years — these are the “outliers” most likely to face LTC costs that can jeopardize the farm.
In Ohio, a year in a nursing home will cost around $100,000 or more.
For a farm couple, those numbers can double — and the risk of outliving income and savings increases.

Can the farm handle it?
If you’re wondering whether your operation could survive those costs, it depends on a few things:

Do you have income (from Social Security, retirement accounts, rent, etc.) that could help cover LTC?
Do you have non-farm assets, such as savings or investments, to use before touching the farm?
Would you be considered an “outlier,” needing care for many years — and would your current planning handle that?

In most cases, a farm family can survive average LTC costs, around $180,000, without needing to sell land and other critical assets. But it’s the outliers — the five-to-10-year nursing home stays — that pose the greatest risk. That’s where planning becomes essential.

Planning ahead: options for managing LTC risk
There’s no one-size-fits-all solution. But there are strategies that can help reduce LTC risks and protect the farm. Here’s a breakdown of the most common options:

Do nothing
For some, doing nothing is a valid strategy if they have enough income and assets to cover even the worst-case LTC costs without risking the farm, but that’s rare. Most families should at least consider other options.
Gifting assets
Giving land or assets to heirs (usually children) more than five years before applying for Medicaid can protect those assets from LTC costs, but gifting comes with trade-offs:
1. You lose control over the assets.
2. The heir receives your original tax basis, which could trigger big capital gains taxes later.
3. If you need LTC during the five-year look-back period, the gift can cause Medicaid penalties.
Gifting can be effective — but it needs to be done carefully and early.
Irrevocable trusts
An irrevocable trust can protect assets while allowing some flexibility. You give up ownership and control, but the trust (managed by a trustee) holds the asset for your beneficiaries. If structured correctly and established early enough, the trust assets are shielded from LTC costs — and sometimes still qualify for a stepped-up tax basis at death.
But be warned: these trusts are complex, expensive to set up, and must be carefully maintained.
Wait-and-see approach
This strategy avoids doing anything upfront but relies on having enough income and savings to cover five years of LTC if needed. If care becomes necessary, assets are transferred and the clock starts. The gamble? If you can’t make it through the five-year penalty period, your assets might still be at risk.
Self-insurance
Some families choose to earmark a piece of the operation (a less productive farm, a savings account, etc.) to pay for care if needed. It gives flexibility and control, but it also requires discipline — and can lead to one spouse living more frugally out of fear the money won’t last.
Long-term care insurance
LTC insurance can cover all or part of the costs — and newer “hybrid” policies can include a life insurance component so the money isn’t lost if care isn’t needed. But these policies can be expensive and hard to qualify for, especially if you already have health issues. Still, they’re worth exploring with a good adviser.

So, what’s the best strategy?
The truth is, there’s no “best” option — just the best fit for your family’s goals, resources, health and timing. Some families will mix and match strategies. Others will lean heavily on one. The important part is that you understand your risk and make intentional decisions, not default to inaction.

Talk to an attorney and plan ahead
LTC is complicated. Medicaid rules, tax law, trusts and gifting penalties are full of pitfalls. One wrong move, even with good intentions, can backfire. That’s why it’s so important to work with an attorney who understands long-term care planning and farm operations. Also, start the conversation now. Don’t wait until a crisis hits. Planning ahead can make all the difference for your peace of mind today and for your farm’s future tomorrow.

Your Next Read: Talking About Transitioning Our Farms and Ranches

Four Ways for Farmers to Avoid Estate Taxes in 2025

Wed, 09 Apr 2025 18:11:17 GMT

Succession can be a very sensitive topic for farmers to discuss. Some farmers want their children to take over the farm and operate it in the same manner. Other farmers, either due to a lack of interested children or due to skyrocketing land prices, would rather sell the whole farm for a non-agricultural use such as neighborhood development. Regardless of anyone’s farm succession plan, everyone has at least one similar goal: minimize (or, ideally, eliminate) their estate tax burden.

Tool No. 1: Estate Tax Exemption
Generally speaking, an individual’s taxable estate includes all assets owned by that individual at the time of death, including assets owned through an LLC that the individual owns or through a revocable trust in which the individual is a beneficiary. So, if a farmer establishes a revocable trust that owned the LLC that owns the farm (a common probate avoidance-liability protection strategy), the farmer’s estate would still be deemed to own the farm, including its land (measured at fair market value), equipment, livestock, buildings, and so forth.

Unlike the other tools which will necessitate an attorney, the estate tax exemption is something that every taxpayer automatically utilizes at death. The estate tax exemption in 2025 is $13.99 million for individuals and $27.98 million for married couples. In other words, if an individual were to pass away in 2025 with less than $13.99 million in their estate, that individual’s estate would not be responsible for paying estate taxes. While Congress may change the law for 2026 and beyond, the estate tax exemption for 2026 is set to revert to pre-2017 Tax Cuts and Jobs Act levels, putting the individual exemption at approximately $7 million and the married exemption at approximately $14 million.

Even at these lower amounts, most farmers have nothing to worry about . Still, some farmers place estate taxes as their primary concern when conducting succession planning, so hopefully this first tool alleviates those worries.

Tool No. 2: Family LLCs
The estate tax exemption is reduced by any reportable gifts made during the decedent’s lifetime. In 2025, a donor must report to the IRS any gifts to individuals that are worth more than $19,000 and gifts to married couples that are worth more than $38,000. As such, a farmer can gift shares of their farm LLC to their children that are under the gift tax reporting thresholds over a period of time, ideally decades, to reduce their taxable estate once the farmer does pass away.

A few aspects of family LLCs are noteworthy.

The farmer should be gifting shares of the farm LLC that lack voting rights, which the IRS will view as less valuable than normal LLC shares, thereby allowing the farmer to gift a higher percentage of the LLC each year without exceeding annual gift tax limits.
Farmers with children who are married can conduct this strategy more efficiently than farmers with children who are not married. Moreover, the children who receive shares are not necessarily obligated to retain the shares – the children can sell the shares, including amongst themselves.

Tool No. 3: Internal Revenue Code 2032A
At its core, IRC 2032A allows for an additional estate tax exemption of up to $1.42 million in 2025 (i.e., thus increasing an individual’s estate tax exemption to $15.41 million and a married couple’s estate tax exemption to $29.4 million). Concisely, there are both pre-death and post-death requirements that must be met for the IRC 2032A increase to be utilized. The State of Washington Department of Revenue has a very readable frequently asked questions page on IRC 2032A which more comprehensively details the requirements.

With respect to just the high points, the decedent must have been farming the land for five of the last eight years of his or her life. Specifically, the decedent must have been providing ‘material participation’ on the farm, not just leasing land to third parties. The land and equipment used on the farm must also constitute significant percentages of the farmer’s estate. After death, the decedent’s ‘qualified heir’ (usually a child) must continue farming the land for the next ten years. Like the decedent, the qualified heir must materially participate on the farm – not just lease it out to a third party. If the qualified heir ceases farming operations at any point during those 10 years, the qualified heir will be personally liable for the estate tax burden and must pay it within six months of the deviation.

Tool No. 4: Irrevocable Life Insurance Trusts (ILIT)
For high-net-worth farmers who will not avoid the estate tax through the above tools, an irrevocable life insurance trust (ILIT) is an option. While both assets in a revocable trust and some life insurance policies are included in a decedent’s estate, assets placed in an irrevocable trust more than three years before death are not included in the estate.

For an ILIT, a farmer would set up an irrevocable trust, purchase a life insurance policy, and place that policy within the trust. When the farmer dies, the ILIT would receive life insurance proceeds that were excluded from the estate and distribute them to the surviving spouse or children in order to pay the estate taxes and otherwise provide liquidity to the farm.

ILITs can be very expensive, however. It will cost several thousand dollars for the initial document drafting to be done, and then anywhere from a few hundred dollars to tens of thousands of dollars for the annual life insurance premiums. In short, farmers who will never approach the estate tax exemption levels should not invest in ILITs.

Article written by Nicholas Brown.Brown, Nicholas. “ Four Ways for Farmers to Avoid Estate Taxes in 2025. “ Southern Ag Today 5(14.5). April 4, 2025

Your Next Read: Before Starting a Farm Transfer: A Farm Family Pre-Agreement

Before Starting a Farm Transfer: A Farm Family Pre-Agreement

Tue, 08 Apr 2025 19:59:44 GMT

Often, when speaking to groups of young farmers looking to return to the family farm, the first question I am asked is, “What is the best way to start a farm transfer?” In most circumstances, I typically recommend a trial period for both generations. Instead of jumping into a farm business partnership, the junior generation (future owners) and the senior generation (current owners) must agree on how they will work together and how rapidly the farm transfer process will progress. This is something I refer to as a “pre-agreement.”

A pre-agreement should contain at least three parts:

How to work together
How to develop the junior generation’s skills
How long a trial period is necessary

Keep this agreement simple; it is not a legal agreement but a precursor to one. Treat this like an internship opportunity, where both sides must work together to improve the skills and employability of the junior generation and benefit the business for both generations.

How to Work Together
Get both generations’ expectations out on the table. It is better to air one’s concerns ahead of time than have difficult situations result. These “working together” guidelines should include basic things such as pay, time off, and when people are expected to show up and leave work.

It is also wise to discuss how much autonomy or decision-making authority each person will have: will decisions be shared, or will the owner be the sole decision-maker? Also, both parties need to be realistic about working together, even discussing how to part ways amicably if things don’t work out during this pre-agreement process.

How to Develop the Next Generation
The next generation rarely has all the necessary skills and management ability to run the farm immediately. It is also just as rare that the senior generation will have all the necessary skills to be excellent trainers and teachers. The solution is to craft a development program that assesses the skills the junior generation needs and places the training responsibility on the senior generation.

If training the next generation is too tricky, don’t be afraid to look to outside sources for farm manager training, such as college degrees, cooperative extension programs, trade schools and associates degrees, and Farm Bureau young farmer and rancher meetings.

How Long of a Trial Period
The junior and senior generations must agree on how long this pre-agreement trial period will last. At the end of the trial period, plan to make a decision: continue farming together; modify the working relationship and progress the farm transfer process; or part ways in a friendly manner. Both parties must always be open to voicing and hearing concerns. For longer agreement periods, it’s a good idea to schedule routine checkpoints (at least annual, if not more frequent) to discuss how each generation is living up to their side of the bargain.

A Sample Pre-Agreement
A sample is provided here as an example of the types of things a pre-agreement could address. Feel free to modify this sample to fit your farm’s circumstances. If additional materials are needed, please talk to your local extension agent. You may also find general business transfer guides at https://coopcenterSC.org .

Article written by Steven Richards. “ Before Starting a Farm Transfer: A Farm Family Pre-Agreement. ” Southern Ag Today 5(15.1). April 7, 2025.

Your Next Read: Talking About Transitioning Our Farms and Ranches

Talking About Transitioning Our Farms and Ranches

Fri, 04 Apr 2025 14:51:23 GMT

Agriculture is a multigenerational industry, and it is a source of pride for many people in the sector. However, it is also a challenge we must navigate as we move our businesses from one generation to another. There are several hurdles to transitioning a farm business to the next generation, including legal, financial and social. Initially, we often turn to lawyers and accountants with our questions. However, perhaps the first and most challenging obstacle is the communication needed to bring our families together for these major decisions.

Research in the area of transition planning suggests that there are four stages to go through:

Development of a retirement plan
Identifying a successor, either family or non-family
Transferring managerial control
Legal transfer (lawyer and accountant)

Many farm transition planning workshops host a lawyer and/or accountant to answer questions and help farm families, but it might be interesting to know that this is the last step in the complete process and that we tend to get stuck on the first step more often than not.

The legal barriers to transitioning a farm require expert help and will vary by farm business, as will the tax implications for different asset bases and in different states. The financial barriers can either speed up or slow down transition plans as the available funds can affect the viability of bringing another person or family into the business. The social barriers will also vary and can include factors such as delaying a transition decision while waiting for a child to make career and/or marital choices. Marriages and divorces can complicate transition planning as well.

It can also be difficult for a farmer or rancher to give up their identity as a producer and control of business decisions by handing over the keys to another, even when it is the next generation of their family. The social barriers arise because farms are a unique intersection between families and businesses.

In conducting qualitative research in Alabama, we have talked to many farmers between the ages of 35 and 50 about their management styles and the issues that challenge them in their operations and lives. We are learning transition planning is at the top of their minds, but approaching the older generations who still own and/or control farm assets is not always easy. They don’t know how to start the conversation in a respectful way that keeps the line of communication open.

One way to start the conversation could be by encouraging them to attend a transition planning session put on by Extension or at a commodity meeting. Another is asking a family friend to broach the topic, reminding them that time can slip away from them if this gets put off indefinitely. Maybe the first step is as simple as forwarding a copy of this article and asking them to share a conversation over a cup of coffee. Whatever your approach, it is worthwhile to consider and discuss.

Article written by Taylor, Mykel, and Kelli Russell. “ Talking about Transitioning our Farms and Ranches. ” Southern Ag Today 5(14.1). March 31, 2025.

Your Next Read: 5 Conversations Every Family Should Have Before A Farm Transition

BREAKING: USDA Secretary Brooke Rollins and Sen. Roger Marshall to Join Farmers At Top Producer Summit

Sun, 16 Feb 2025 21:24:22 GMT

Secretary of Agriculture Brooke Rollins and Sen. Roger Marshall of Kansas will speak Tuesday morning at this week’s Top Producer Summit in Kansas City. The event is among the secretary’s first public appearances since being confirmed Feb. 13 . The fireside chat will cover key topics driving the future of agriculture.

A one-day pass to the event is available to give the agriculture industry a chance to hear Secretary Rollins share her vision for U.S. agriculture. Advanced registration is required due to security protocols. Register now with discount code ONEDAY to receive the special rate.

Secretary Rollins, originally from Glen Rose, Texas, serves as the 33rd Secretary of Agriculture. Most recently, she was founder, president and CEO of the America First Policy Institute. During President Donald Trump’s first administration, she was the director of the Domestic Policy Council and assistant to the President for Strategic Initiatives in the White House. She also previously served as director of the Office of American Innovation.

Sen. Marshall is a physician and U.S. Senator for Kansas. As a fifth-generation farmer from Butler County, Sen. Marshall became the first in his family to attend college. In the Senate, he serves on the Committee on Agriculture, Nutrition, and Forestry. He is the chairman of the Subcommittee on Conservation, Climate, Forestry, and Natural Resources and a member of the Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research.

Tickets are still available to attend the entire Top Producer Summit , which is agriculture’s premier educational and networking event for forward-thinking farmers and ranchers. The event will bring producers of nearly a dozen commodities together at the Loews Kansas City Hotel to share business opportunities and ideas for taking their operations to the next level.

In addition to the fireside chat with Secretary Rollins and Sen. Marshall, the agenda includes:

The Future of Farming with Byron Reese, futurist, technologist and entrepreneur
Conquer Decision Paralysis with Rena Striegel, Transition Point Business Advisors
How Income Taxes May Change Due To The Election with CPA Paul Neiffer
Land Diversification: What to Know Before Exploring Renewable Energy and Conservation Opportunities with Quint Shambaugh, Pinion
What’s Ahead for Farm Input Pricing with Sam Taylor, Rabo AgriFinance
What to Watch With the Weather in 2025 with Eric Snodgrass, Principal Atmospheric Scientist, Conduit Ag
Global Fertilizer Market Overview: What It Means At Your Farm Gate with Josh Linville, StoneX

Some of the nation’s most outstanding farm operations will be recognized, including winners of the 2025 Top Producer of the Year award , the 2025 Women in Ag award and the 2025 Next Gen award .

What the Next Generation Can Do to Prepare for Transition Planning

Thu, 19 Dec 2024 17:43:19 GMT

The interconnectedness of agriculture business and family relationships can make transition and estate planning feel challenging. Having the conversations and carrying out the legalities are two separate components that require great detail. Add on managing finances and what should be an exciting opportunity for the rising generation can quickly become overwhelming.

Jessica Groskopf, a Nebraska farmer and transition planning expert, talks about transition and estate planning in a different light. She spoke on the Casual Cattle Conversations podcast about how the next generation can prepare themselves. She recognizes the challenges that come with the process, but also sees the hidden opportunities that can help the rising generation build for the future.

“There is a big part of the message missing when it comes to talking about estate and transition planning,” Groskopf says. “That part of the message is what we can do as the younger generation to prepare ourselves for that eventual transfer.”

Jessica and her husband know firsthand what it is like to build for the future even when there has been a lack of transparency and communication from the senior generation. Together, they turned what looked like a less-than-ideal buy out to others into a great opportunity for themselves by using emergency funds, good debt, flexible investments, and alternative revenue.

Groskopf says, “Fifty percent of land owned by an operator was purchased from a non-relative.”

That means the younger generation needs to start preparing financially because the likelihood of them purchasing property is very high.

Financial preparation can include many components. The Groskopfs knew they wanted to buy farmland at some point regardless of if it was in the family or not. So, they started early to prepare for their unknown scenario of a down payment for property.

“The key to savings and investing is time,” Groskopfs says. “The younger you start saving and investing, the better off you will be especially if you are allowing that money to grow over a significant amount of time.”

About five years after they began saving and investing, Jessica and her husband bought into the family partnership with the money they had accumulated. The amount of time, and money needed for a down payment is unique to each individual person and family.

Emergency funds are the first step to financial security.

“For most farm and ranch families, I prefer they have three to six months worth of family living expenses on hand,” says Groskopf

Emergency funds are the safety net that families can use to safeguard against bad debt and continue to move forward financially. One smart practice with emergency funds is to make sure they are in an easily accessible account that earns interest. Two account examples to explore are high-yield savings accounts or money markets.

The next step is to tackle “bad” debt.

“Not all debt is bad and debt is certainly not dumb,” Groskopf says. “Debt is a tool…I think most people understand what bad debt is, but I want to provide a clear definition. Bad debt has a relatively high interest rate, usually over seven percent. Bad debt is also purchasing items that are not necessary.”

Other considerations to make about debt include depreciation, tax advantages and if the item putting you in debt is adding value in other areas of the business. It ultimately comes down to how you manage debt because even good debt can pile up and put farmers and ranchers in less-than-ideal financial positions.

Once you have an emergency fund, and have paid off “bad debt”, it’s time to focus on other savings and investments.

“If the money will be needed within three years, it should go into the savings bucket,” Groskopf says. “High-yield savings accounts, money markets and bonds are all examples of accounts that can be used for shorter-term savings. Accounts used for savings should earn enough interest to outpace inflation, look for options with an annual percentage yield of 3% or higher.”

Groskopf says to invest money that will not be needed in the short term. Investment accounts usually have higher rates of returns but require leaving the money in the accounts for long periods of time to receive the advantages of using them.

For farmers and ranchers aiming to secure their financial future, Jessica recommends investing in flexible accounts. When picking an investment account, considerations need made to what tax and penalties may apply upon withdrawal of the funds along with any other stipulations that come along with the account. Once you have selected the account, you will then need to select the investments within the account. Producers should look for lost cost, diversified options such as Index Funds, Mutual Funds or Exchange Traded Funds, she adds.

“If your head is spinning when it comes to all this information, I’d encourage you to sit down with a financial advisor and explain your situation. Share how long you’d like to invest and how accessible you need the funds to be,” Groskopf says.

Alternative revenue streams or town jobs are a common risk management strategy for farm and ranch families. Whether they pay for living expenses or even supplement the business during the beginning years, they can be a valuable tool.

“I’m someone who says that it has to fit with the farm or the ranch,” Groskopf says. “You have to make sure the seasonality of the business doesn’t conflict with the farm or ranch and that you have the flexibility you need to get everything done.”

Financial and non-financial considerations need to be made before committing to another form of revenue for your personal life or ranch.

Building for the future takes time and experience.

“No one has taught any of us how to do this finance stuff…it is not something you should inherently know,” Groskopf explains. “If you are starting from scratch, go back to your balance sheet. Write down what you do and don’t have in place and even what you don’t understand. Connect with an expert such as your local banker or a financial planner who can help you move forward.”

If you are not comfortable investing on your own, work closely with a Certified Financial Planner (CFP®) professional, Certified Public Accountant, tax preparer, and/or investment advisor.

Listen to the full conversation:

Your next read: Tax Turbulence: How Sunsetting Provisions Could Change Your Bottom Line

Secure Your Farm’s Legacy: Virtual Succession Workshop for Teams

Tue, 15 Oct 2024 16:07:03 GMT

The organizers of The DIRRT Project are ready to help farms tackle their toughest family business issues.

With both in-person attendance (in Des Moines) and for the first time ever a fully integrated online option, the upcoming event takes place Dec. 2 to 4.

The in-person event is led by experts with personalized facilitation.

The live stream offers real-time participation with the ability to ask questions and join discussions.

Register at www.thedirttproject.com

Who should attend? If any of these four challenges sound familiar, The DIRTT Project aims to help you and provide clarity.

1. “We don’t know where to start.”

“Succession planning feels overwhelming and deciding who will take over the family farm or ranch seems impossible,” says Rena Striegel, of Transition Point Advivors, who organizes the event.

2. “We have personality conflicts and dysfunction.”

“Family dynamics can be complicated, especially when it comes to discussing the future of the business,” Striegel says. “Tensions can run high, making it difficult to have productive conversations.”

3. “We’re afraid to talk about it because we don’t want to create conflict.”

Strigel says it’s common for succession planning can stir up emotions, and stakeholders may be avoiding the conversation to prevent disagreements within the family.

4. “We’ve started before, and it didn’t work.”

“Maybe you’ve tried to have these conversations in the past, but things fell apart, or decisions were never fully made. You’re left feeling stuck and unsure how to move forward,” Striegel says.

The DIRTT Project is a hands-on workshop specifically designed to help agricultural families work through the complexities of farm and ranch succession planning.

“Our program addresses not only the logistical and financial aspects of succession but also the emotional and relational challenges that come with passing the torch to the next generation,” Striegel says.

Attendees can expect to:

Create a Clear Succession Plan
Resolve Family Tensions
Encourage Honest Conversations

“The DIRRT Project is different than other farm and ranch succession planning,” Strigel says. “It doesn’t have to be overwhelming.”

She says every program is structured to give attendees the following takeaways:

Immediate Impact
Customized Solutions
Expert Guidance
Proven Results

Register at www.thedirttproject.com

Surprising Ways You Can Make A Big Impact On The Farm

Mon, 30 Sep 2024 17:56:18 GMT

Everyone brings a unique set of skills and passions to the family farm - but what if the biggest value you can add actually comes from a career off the farm?

Sam Beveridge, an experienced commodity trader, joins Rena Striegel and Ron Rabo on the Ag Inspo podcast to share how his contribution to his family’s sixth-generation operation might look untraditional.

“My strongest contribution back to the farm is being a voice, a sound of leadership that can say ‘here’s what I’m seeing across the farmers I talk to. Here’s what is working, here’s what is not, and here are some of the loopholes to be cautious of’,” he says.

Beveridge’s family farms land in the sandhills of Nebraska along with running a cow-calf operation. He explains that in his case, he best thing for the farm was for his brother to run the day-to-day operations while he provides insights from an office setting.

“Where do you fit best in the family operation? It could be ‘the guy in the office’, and that’s a valuable understanding to have,” Beveridge says. “In a traditional farm or ranch environment, your role is to return and be the physical labor. But I’m a pretty good trader, and the financial trading aspect outweighs any labor aspect I could provide. My value per hour is better sitting in the environment I am today and allowing my brother to rise up and be the leader in his space.”

It isn’t always going to be easy for everyone to carve out their individual role, and he shares it’s been a process of countless trial and error for his family to get to the point they are today.

“You’re better when you have the people who are really good at what they’re doing staying focused in those spaces,” Beveridge says. “There are other people who love what you don’t and they’ll put their blood, sweat and tears into it because that’s what they want to do.”

The Ag Inspo podcast uncovers the stories that inspire, empower and drive change. Hosts Rena Striegel and Rob Rabo explore the journeys of farmers, entrepreneurs and leaders who are making a difference. To hear more, click here .

Your Next Read: First Generation Farmer Shares How He Found His Way To Success

Industry Shifts: What Cattle Producers See Coming In the Next 5 Years

Thu, 26 Sep 2024 20:44:52 GMT

Editor’s Note: This article is part of the Drovers 2024 State of the Beef Industry report, which includes an exclusive survey of cattle producers and their thoughts on numerous topics of importance to the future of their operations. To download the full report, click here .

In 2023, the State of the Industry Report asked about five aspects related to consumer pressure and expectations for change in the future: environmental impact, animal welfare, sustainable practices and desire of high-quality beef. In every instance, a strong majority of producers either agreed or strongly agreed each of those items will be increasingly important in the years to come. The numbers in 2024 line up almost exactly with 2023.

The survey report summarizes it succinctly: Producers foresee continued industry change ahead, mostly driven by consumer pressure.

Drovers State of the Beef Industry 2024 Report

(Farm Journal)

Viability is Top of Mind

Despite the challenges, producers are thinking to the future with plans to add a family member and grow their herd size. In fact, 54% of producers in this year’s survey indicate they plan to add a family member to the operation (versus 51% in 2023).

Even though it doesn’t appear the business will see rapid rebuilding , there are indications many of these operations are viable and plan on remaining that way in the future. That’s certainly a sign of brewing optimism among the respondents.

Your Next Read: Are Cattle Producers Rebuilding Their Herds Now?