Succession Planning

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

Thu, 05 Mar 2026 14:57:37 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 20:18:07 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.

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

Wed, 25 Feb 2026 16:51:43 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.

How Agriculture’s Next Generation of Innovators Can Build Financial Acumen Now

Wed, 10 Dec 2025 15:13:43 GMT

Beginning farmers and the next generation in agriculture face significant hurdles, including the high cost of capital and limited access to land. Technology is allowing the older generation to stay in business longer, too, creating a difficult environment to bring people into farming.

As senior vice president of business development at Farm Credit Services of America, Jason Edleman is focused on helping young producers and beginning farmers develop stronger financial skills so they can make better and more informed business decisions on the farm.

“One of the ways we are doing this is by setting up our lending officers to also serve as coaches for about four years with a group of about 50 to 60 customers,” Edleman explains. “From balance sheet training to cash flow lessons to understanding your family’s living expenses, their goal is to help customers through one-on-one coaching and classroom-style lessons to hone basic skill sets that will help them be financially responsible.”

He says it’s surprising how many people would guess they live for about $35,000 a year when in reality it’s likely closer to $120,000 a year.

“As lenders, we think about these things all the time,” Edleman says. “But for a beginning farmer or young producer, those skills take time to develop.”

Empowering Risk-Takers with Financial Understanding

He is excited about the next generation in agriculture as they bring a lot of different skill sets to the industry that are new and exciting. They’re also very creative in how they’re going to market, too.

“Their adaption to technology and how they learn and grasp information is so much different,” Edleman says. “I use the example of how my son (who is not a farmer) learns. He watches a 3-minute YouTube video, and then he goes and does it. His generation is not afraid to tackle stuff, but they just need some access points to learn.”

Farm Credit Services of America (FCS America) wants to help fill those learning gaps, he adds. FCS America is doing that through its Starting Gate program designed to empower and develop the future of agriculture by providing young and beginning farmers with personalized coaching in agricultural finance. Participants work with FCS America professionals to build skills in budgeting, financial planning and risk management, creating a strong foundation for their business goals.

(Farm Credit Services of America)

For more than 20 years, they have been hosting the Side X Side Conference for producers 35 years of age or under or farmers who have been farming less than 10 years. It features educational sessions, inspirational speakers and networking opportunities all geared to help producers better understand the financial side of the business.

“We recognize the challenges our producers are having and believe this program and hands-on coaching can have a generational impact,” Edleman says. “Years ago, we realized from a financial acumen standpoint, a majority of producers can’t put their balance sheets together on their own and don’t have a good understanding of how a cash flow can help them in their operation’s decisions.”

He admits farmers may be good at the “napkin math,” and usually have all the numbers in their head. However, this doesn’t always translate when they tell their story to a lender and may not fully encapsulate all of their expenses.

“The more successful farmers understand financials – cost production, cash flows, balance sheet trends and what it means to their income statement – the better decisions they can make about the risks they can take,” he adds.

One of the best parts of the events is the networking that takes place.

“The boards in the back of the room are a great tool to build relationships,” he explains. “We challenge producers to put things on the board they are looking for. Maybe it’s a connection point on how to sell something, or maybe they need hay. Ultimately, they end up sharing ideas and sharing numbers.”

Several peer-to-peer groups have formed because of these conferences and now regularly meet to share ideas, best practices and build relationships, Edleman says.

Navigating Income Diversification and Side Hustles

Whether the new generation wants to add a second business or not, most have to find a way to dive into other sources of income such as contract finishing, hunting, spraying or trucking businesses.

“We’re seeing about 44% of young or beginning farmers have a side job whereas a traditional farmer probably is only closer to 36%,” he notes.

As lenders, Edleman says their goal is to help producers. Close communication and a greater financial acumen help producers better prepare for the unknowns in farming.

“I think this young group really shines because they’re not afraid to try new things,” he adds. “From drone technology to how they use AI to make decisions, they’re grasping things more quickly. I think that’s been a good thing as it creates other sources of income that these operations can leverage as well.”

Early Engagement and Succession Planning

For the “coaches” at Farm Credit Services of America, the extra one-on-one time allows them to really get to know their clients and bring up hard topics of conversation like succession planning.

“Personally, I don’t think any of us want to work on estate planning and think about the inevitable,” he says. “We’re trying to engage conversation around the fact that life doesn’t always shake out like we think. The more we can prepare people to think about these tough topics earlier, the better. We can’t change the direction of what that looks like, but we can continue to influence communication.”

Although coaching young and beginning producers one-on-one is where Starting Gate financial officers spend more of their time, Edleman says many are also branching out to teach classes and present on financial topics at technical schools and land grant universities.

“We’re spending more time engaging future farmers earlier,” he says.

At one technical school in South Dakota, lenders do mock interviews with students. They aren’t interviews to practice landing a job, however. They are interviews to practice seeing your lender for the first time.

“Where are young producers at when mom and dad go to see the lender? They’re at home doing chores,” Edleman says. “Their professors and our coaches help them apply for their first loan or learn what to ask during an interview. It’s a simple thing, but it’s a huge thing when you think about where they’re at in their journey.”

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

Fri, 21 Nov 2025 18:13:29 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 14:12:15 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?

Live a Life That Matters

Fri, 14 Nov 2025 14:58:38 GMT

What is the greatest desire people have before they die? Though many lists point to things like seeing the Northern Lights, conquering a fear or starting a business, most people would say they want to live a life that mattered.

Going on college visits with my senior makes me wonder as a mom if I have equipped him to do just that. Have I explained enough times that his actions make a difference? Did I prepare him for a world that’s full of distractions? Have I modeled what it looks like to leave a positive legacy?

Of course, I hope when he heads off to college next fall that he gets good grades, develops wise habits and does his laundry regularly. But more than anything, I hope he leads a life that positively impacts others.

Invest in Building People Up

Though I didn’t have the honor of knowing our newest barn hero Jennifer Romero, I know she accomplished living a life that mattered. There’s no question she was an excellent sow farm manager for Martin Family Farms, and the legacy she left of helping people become great in their roles on the farm and in life is far greater than she ever knew.

As a person who places a high value on relationships, talking to Romero’s family and colleagues reminded me of two very important lessons: Don’t take the people in your life for granted, and don’t miss the opportunities you get every day to make an impact on the lives of others. Read her incredible story here .

Leave It Better Than You Found It

Minnesota pig farmers Dave and Tracie Mensink are living a life that matters by using conservation practices on their farm to boost productivity and profitability while building a legacy for future generations.

They are in the process of transitioning the farm to their son, Alex, and his wife, Katie. They are the first generation of Mensinks to farm their land, and he wants to make sure they aren’t the last, he says. Read how they are making this happen here .

From sustainability to succession planning, living a life that matters doesn’t happen by chance. It requires intentionality, sacrifice and hard work. Having a clear sense of why you do what you do and believing your actions contribute to something larger than yourself and lend to a life of purpose.

As another new year approaches, now is the perfect time to ask yourself the hard questions to make sure you are living in alignment with your purpose.

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

Tue, 21 Oct 2025 19:06:53 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 16:08:05 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.”

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 21:56:18 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

Josh Maschhoff Opens Up About Building on the Family Legacy in Pork Production

Fri, 06 Jun 2025 18:48:55 GMT

When you think about Josh Maschhoff, many things come to mind. He’s a husband, father, president, son, nephew, firefighter, friend, church elder, coach, sixth-generation hog farmer and director of production and flow for The Maschhoffs to name a few. What he is not is an overly emotional person, says his wife Angela, until you get him talking about the family business.

“Josh respects what the generations before him have accomplished,” she says. “He strives every day to work hard to continue building on what they started. He feels a responsibility to continue the family legacy. He cares not only about his family farm, but also the success of the pork industry in the state of Illinois and across the country.”

Growing up as the sixth generation on the Maschhoff’s family farm in Carlyle, Ill., his earliest memories were riding in the combine with his dad singing Randy Travis’ song, “Digging Up Bones.” When he was in grade school, he remembers the business taking off and adding its first production partners.

“My mom was handling a lot of the book work, so that’s where I learned some of my first computer skills,” he says. “When I went off to college, that expansion continued exponentially and that’s what triggered me to come back. I realized I didn’t want be disconnected from what was happening. I wanted to be included and find my way to support the family business.”

Growing up a Maschhoff meant growing up with a family who encouraged you to go out and do your own thing, he says.

“My mom spent a lot of time driving us to our events and to school every morning and back. She always encouraged us kids to go out and make something else with our lives,” Maschhoff says. “I think that was noble of her. Nobody wants to force their kids to do exactly what they do. But in the end, there’s a secret underlying passion that you wish your kids would come about it on their own to figure out that this farm is pretty cool.”

With big dreams of becoming an engineer, Maschhoff caught everyone by surprise when he decided to follow his heart instead and return to the family’s multi-generational farming business. He understood that coming back home wouldn’t be easy. He knew he wouldn’t be able to just step in and take the job he wanted.

“You have to earn your position here,” Maschhoff says. “I interviewed for a role in the family’s business and was not selected. Nine months later, a spot opened that matched my skill set. Neither the hiring manager nor I were extremely confident I was going to be the absolute right person for the job, but we were both confident I was going to give it 150%. I appreciate that person for taking a chance on me and allowing me to show where my passion could take me.”

Setting Up a Family Advisory Council
Throughout the past few years, the Maschhoff family has been formalizing its succession planning process, he says. Before this time, it was more informal with verbally expressed expectations. The recent creation of a family advisory council has been helpful in guiding the family’s plan for the future.

“The advisory council is made up of four members of my generation – myself, my sister-in-law, my cousin and his brother-in-law,” Maschhoff says. “These are elected roles from our family assembly, made up of everybody who is a bloodline descendant or spouse.”

The process is designed to formalize some governance around how the family will steer their thoughts and ideas to help inform the family business, he explains.

“I think it’s important that governance for family businesses be formalized in some way, because it takes out the gray,” he says. “Having input from multiple generations into that is important as well.”

Their family is working with a third-party business that specializes in helping families work through generational transitioning, as well as formalizing that governance.

“Sometimes these topics can be a little bit awkward to talk about, and that’s because we’re very passionate about what we do,” Maschhoff says. “If questions are raised from one generation to the next, you want to remove that emotional stigma. Having a third party that can look at the question objectively and help you understand the underlying intent of those questions is important. In most cases, those intentions are all very pure at heart.”

Maschhoff has learned a lot by watching his parents and his uncle and aunt over the years.

“The amount of time and effort and work they put into the business shows it’s not just about the business itself, it’s about the overall opportunity to fulfill your main mission in life,” he says. “For us, that’s about helping other people. Feeding families and building communities – that’s what I saw my grandfather and my grandmother doing. That’s what I’ve seen my parents’ generation doing.”

What’s Holding Back the Next Generation?
It’s an interesting period of transition in agriculture. Many farms will be experiencing a transfer of ownership to a new generation — a generation that is already stepping into crucial roles on their farms and in their communities like Maschhoff.

Recent Farm Journal research reveals a surprising twist: Contrary to industry expectations, these young farmers are no more inclined or prepared to adopt cutting-edge farming practices than their predecessors. Their main focus remains on maintaining their current operations rather than pursuing radical changes. This cautious approach means that the anticipated wave of change driven by young farmers will be more gradual and measured – unless they are more supported to test, learn and invest.

Maschhoff says this doesn’t surprise him as farmers are generally traditional in nature. Traditional doesn’t necessarily lend itself to being on the cutting edge all of the time, he adds.

“Young farmers might feel the burden or the pressure to get it right, and that doesn’t mean test the waters every single spot you can find,” he says. “It’s a statistical fact that 13% of family businesses make it through the third generation. We know the suicide rate in agriculture is high. I think these things tie together – that pressure of feeling this responsibility to carry on your family’s tradition combined with this passion for animals or being a good steward of the land. It doesn’t necessarily lend itself to always finding the nicest, newest, brightest, shiny toy and trying to figure out how to incorporate it on your farm.”

Maschhoff believes there’s a lot of calculated risk taking going on in his generation.

“The pork industry is mature,” he says. “I think that’s a buzzword flying around a lot now. I don’t know that you’ll see a ton of growth in the pork industry like the 90s and early 2000s I think you’ll see it be calculated and a little more reserved because of the margin that’s there.”

Watch Out for Blind Spots
Still, he appreciates how resourceful and tenacious people in agriculture can be, Maschhoff says.

“We don’t give up very easily, and that can cause us to have a blind spot at times,” he says. “Don’t let the passion and pride that are our biggest strengths turn into a potential weakness by causing that blind spot. We’ve got to know and anticipate that a slight deviation in course is necessary at times to continue to make us sustainable. Fighting that course correction could be somebody’s downfall or take you down a path that that you weren’t expecting or intending.”

Learn what drives Josh Maschhoff to be successful, how firefighting has grown his leadership skills, and why he’s not afraid to share where he falls short in life on The PORK Podcast. You can watch on YouTube or listen to the podcast anywhere podcasts are found.

Your next read: An Open and Honest Leader for Illinois Pork Producers: Q&A with Josh Maschhoff

Long-Term Care: Affording it Without Losing the Farm

Tue, 22 Apr 2025 11:44:57 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

Protect Our Legacy Through Transparency and Advocacy

Fri, 18 Apr 2025 15:29:28 GMT

As the fifth generation on our Ohio family farm – paving the way for the sixth and seventh generations – I can attest to how much our business has changed over the years. Across the industry, we have embraced advancements and science-based best practices that have helped us produce safe, high-quality pork in ways that are better for the animals we care for, as well as for our people and the planet. I’m proud of how we raise pigs today.

However, increased activism has forced us to play defense. I firmly believe we are on the right side of these issues, so I’ve always strived to meet them head-on. In fact, I have welcomed thousands of visitors to my farm, including policymakers and nonfarming audiences, to provide a firsthand view of the realities of pork production. As a result, we’ve successfully changed misperceptions about how our animals are cared for, how our land is utilized, and how modern farms operate.

As president of the National Pork Producers Council, I am bringing that same commitment to transparency to share the work NPPC is doing on behalf of the nation’s 60,000-plus pork producers. Often, this work may not make headlines, but incremental steps result in important wins. I want producers to know what we’re doing and to understand the impact that persistent and strategic advocacy can have on industry. Not only will this approach show producers what they get for their investment, but it also sets each of us up for success.

Let’s start that process by highlighting NPPC’s long-range strategic plan, as this road map will guide our decisions in the years to come.

NPPC exists to ensure pork producers have a voice in the rooms where decisions about our future are made. We are committed to consistent, proactive engagement with policymakers at the international, federal, and state levels. Our long-range strategic plan places an emphasis on advocacy efforts that ensure the industry stays ahead of evolving regulations, market trends and corporate demands.

This plan was not created in a vacuum. We sought out and incorporated input from producers to ensure our advocacy efforts are aligned with the long-term goals of the hardworking men and women NPPC represents. From an organizational level, our long-range strategic plan will help us better anticipate and mitigate disruptions across the industry. It will create more effective engagement with producers, which will allow us to be more impactful advocates at every level of government.

Ultimately, we have a much larger goal. We all share the conviction that our family farm is our legacy. Protecting that legacy is the reason I found myself in the advocacy space in the first place. I am committed to ensuring we are all able to pass our family farms on to the next generation. NPPC’s long-term strategic plan will help us get there.

Your Next Read: 5 Ways to Protect Your Farm from Animal Activists

Four Ways for Farmers to Avoid Estate Taxes in 2025

Wed, 09 Apr 2025 18:11:16 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

How Iowa Farmer Mark Hanna is Investing in Innovation and Giving Ag Startups a Fighting Chance

Thu, 20 Feb 2025 17:23:24 GMT

You’ll still find Iowa farmer Mark Hanna behind the wheel of his combine every fall. The technology and automation is a signature of their farm, and what helps keep running the combine still fun for someone who’s been farming for 46 years.

But the landscape of equipment and technology today looks drastically different from when he started farming in 1979.

“I joined my dad’s operation where I was basically the labor force to help me get started,” Hanna says, who farmers in Joyce, Iowa. “I would trade my labor for the use of his machinery.”

The Cusp of the 1980s Farm Crisis
Right on the cusp of the 1980s farm crisis, Hanna’s rookie years of farming were tough.

“It was a horrible time. It was 1979 and my grandpa, Dewey, whose farm we actually bought in 1980, said he was always going to sell me that farm, even when I was little,” Hanna remembers. “And it came about in 1981, and a year later, the farm was worth half of what we bought it for.”

Hanna describes farming as an occupation of risks and rewards. And the risks then were high.

“The bank got concerned and said, ‘Boy, your equity is going backward here. Your net worth isn’t good.’ And I said, ‘Well, I have a private contract with my grandpa. And as long as I make that, it really doesn’t matter to you.’”

The Mortgage Lifters
With interest rates at 18%, Hanna weathered that storm. One way he did was with farrow to finish hogs.

“I figured out they were the mortgage lifters,” he says. “So, I just raised as many as I could in every nook and cranny on the farm for about five or six years. And that kept me making my payments and kept me farming.”

Throughout the ‘90s, Hanna expanded more and more, moving all his hogs and pigs into an environment he could control.

“By 1998, I had even my sows inside as fully confinement buildings,” Hanna says. “But 1998, that was a pretty tough. We had 8 cent hogs in December. I had all my buildings full. We had just built two new buildings. It turned out to be a $30,000 a month loss with no end in sight.”

The Hog Market Crash of 1998
In 1998, Hanna met his biggest challenge yet. With margins in the red and the debt mounting, he knew he needed to find additional income. So, he decided to take a job in town working nights, while also still raising hogs.

“After two weeks of that, I decided, ‘You know what? There’s more important things in life. I’m doing the best I can. And if I’m doing the best I can and I can’t make it, so be it.’ So, I kept breeding sows and keeping all the facilities full. And by July that year we had $60 hogs. I had full buildings, and I made more money than I ever thought I would and got my debt taken care of,” Hanna says.

It’s that moment in Hanna’s career that his son, Philip, says was a pivotal point for their family farm.

“It really stuck out to me is that he just focused on ‘what can I do and not worry about the things that I can’t control and just focus on that’,” says Philip Hanna.

The Next Generation
Hanna’s sons, Philip and Andrew, are now partners in their family farm. And they say the thing they admire most about their dad is his vision and ability to take risks.

“I feel like technology-wise, our biggest thing is being able to variable rate our planting, planting our split application of 32% and our fertilizer in the fall. That’s been huge,” says Andrew Hanna.

Mark’s sons, Andrew and Philip, are now partners on the farm.

(Tyne Morgan )

From the latest technology to the decision to dive into strip till in 2018, even Hanna’s employee of 20 years will tell you he admires Hanna’s intelligence and ability to always look ahead.

“They’re just really good people to work for,” says Larry Severson, a long-time employee. “I mean, they’re very innovative. They try new things like the strip tower. We were the first ones in this area to make that leap. And they went headfirst into it and it worked out really well for them.”

Mark Hanna was one of the first in his area to try strip till, and it wasn’t just a few acres. Hanna went all-in.

(Matt Mormann )

Investing in Innovation
What may be the biggest mark of success is how Hanna is investing in innovation through Ag Ventures Alliance .

“We help startups in ag thrive and be successful,” he says. “We offer them a wealth of information and knowledge and help to get them going.”

Ag Ventures Alliance and AgLaunch now select their top 10 startups each year, offering advice and financial investment.

“Out of that spun AgLaunch Farmers LLC , which we started two years ago. Farmers actually get a stake in each company. They have to put up $100,000 and pledge it to the AgLaunch Farmer LLC. When they’re successful, the farmers will get paid back with their stake in the equity in the company,” Hanna says.

Ag Ventures Alliance was created to accelerate ag tech innovation and redefine resilience and profitability for American farmers.

(Ag Ventures Alliance )

For Hanna, investing in others and helping start-up companies launch into the ag field is one of the most rewarding parts of his job today.

“I like to see new innovations. We like to try the newest thing that’s coming out there on our own farm,” he says.

For his sons, Hanna’s ability to give back and support others is just a glimpse into the strong character he instilled in both of them.

“I came out of high school wanting to be just like my dad, wanting to be a farmer like he has been in the past and to grow with him in the future,” Andrew says.

Phillip adds, “I hope with my brother and me, when my dad starts phasing out, that we’re going to continue to be on the new technology like my dad was and just keep on improving things on the farm and not be afraid of trying new things and new technology.”
Congratulations to Mark Hanna, a finalist for the 2025 Top Producer of the Year.

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Dalton Dilldine: Next-Generation Producer Follows in His Father’s Footsteps

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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 .

Passing on Values (and the Business) from One Generation to the Next

Fri, 31 Jan 2025 16:12:47 GMT

What keeps a family farming operation going strong for more than 100 years? Pat Hord, a pig farmer from Bucyrus, Ohio, says it starts with understanding that decisions should be made around what’s best for the business.

In 2023, his son Phil Hord, 32, was named president of Hord Family Farms and his daughter Colleen Hord, 31, was named chief financial officer. In some people’s minds, those were big titles to get at a young age. In Pat’s mind, those were titles his children earned, and a decision made in the best interest of the business.

“Phil and Colleen are the fifth generation in our family farm,” Pat says. “For us to be able to continue handing the family farm over generation by generation is a sustainability story in and of itself.”

Generation to Generation
Pat and his wife, Janel, encouraged all four of their children to go to college. Although there were no expectations placed to come back to the farm, Phil says going off to college and expanding his horizons made him realize coming back to the farm was an opportunity he couldn’t pass up.

“We were in a growing period of our business, so there was an opportunity to come back,” Phil says. “My path back into the business was planned. I started working in the sow farm as an entry-level technician for several months. I worked my way around the business in different areas – human resources, accounting, wean-to-market. I gained a lot of experience in my first few years relearning it from the ground up.”

The Hords intentionally set this plan into place while Phil and Colleen were young. They were each assigned special projects to complete when they came to work for the family business.

“Both Phil and Colleen needed to understand the business well from the ground level. I think those projects gave them the opportunity to do that,” Pat says. “It was all a proving ground.”

The projects allowed them to build trust and understanding with the rest of the team. The landscape was much different than when Pat transitioned into the family farm, he points out. Years ago when he came to work for the family farm, they had one employee. When Phil came back 10 years ago, the farm had grown in size and already had an established management team.

“Phil had to prove his competency, as well as develop communication and build trust,” Pat adds. “It was earned. At times, he had to work harder than everybody else, because he didn’t start at zero. He started at less than zero because everybody knew he was my child.”

At the end of the day, hard work and effort paid off as Phil and Colleen found their place in the business.

“That’s a big piece to us and how we think about generational transfer,” Pat says. “We tried to do a good job in that transition. It has to be led by what’s best for the business. I think that’s what I’m most proud of – their ability to come in, take responsibility and work through that process.”

It’s OK to Fail
In many family businesses, it’s hard for the patriarch to hand over control, Phil says. He appreciates and admires the approach his parents took in their succession planning process.

“My parents wanted us to be in the trenches with them now,” Phil says. “It allows us all time to figure out how we work alongside each other, how we make mistakes and how we bounce back. Most things I’m getting into in a given week are things I don’t necessarily know how to do. And that’s okay. I believe problem solving and having the tenacity to keep moving forward are necessary to remain in the pork industry today.”

Pat hasn’t hesitated to challenge his kids with responsibility in their new leadership roles. He believes that’s an important piece of succession planning.

“As you work through these things, don’t be afraid. We all learn so much by doing and being a part of it,” Pat says.

He also recommends working with a consultant who can help with some of the blocking and tackling of working through succession planning.

“Some people may all of a sudden end up inheriting assets, but they’ve not been given the tools to be able to manage those,” Pat says. “That just sets them up for failure. That’s been a focus of ours – that transfer of information and wisdom now to be able to handle the growing asset we’ve been blessed to have.”

Maximize Strengths for the Good of the Farm
In addition to his responsibilities on the farm, Pat serves as a director on the National Pork Producers Council’s board of directors and is well respected for his quiet and thoughtful approach to leadership.

“He considers all information and evaluates topics from a 360-degree perspective. When he speaks, everyone listens, as his tone is calm and direct,” says Cheryl Day, Ohio Pork Council Executive Vice President. “He approaches even the most challenging discussions with industry leaders, congressmen, and the governor with remarkable composure. I have watched Pat deliver the toughest messages with a firm hand without creating drama. I have always appreciated Pat’s dry sense of humor; he can naturally bond with anyone.”

Those are traits that Phil appreciates in his father, too. His dad’s consistency as a leader has had a lasting effect, reminding him that sometimes it’s better to pause before you respond, Phil says.

Day also respects the unique insight Phil provides as a young leader in the pork industry. “While Phil clearly shares the values of his parents, he has a more spirited approach. He pursues his passions but exercises restraint when necessary,” Day says. “Phil is a leader we often turn to for a different perspective that represents the younger generation. He thinks outside of the box to address pork demand, sustainability, and leading the farm team.”

It’s humbling to see people recognize strengths in your children that you’ve seen all along, Pat says. Working closely with his children gives him a front-row seat to watch them grow in their abilities.

“Phil has strengths that I don’t have. It’s like when you start playing basketball with your son and eventually, he starts beating you,” Pat says. “You have to accept that they’re better than you. He’s better at leading and executing in a team environment than me. He’s good at identifying a problem and executing on it.”

Perhaps one of the most important questions Pat asks himself is simple: How do we maximize our strengths for the success of the overall business?

“If something happens to me and I get hit by the proverbial bus, I feel very comfortable that this business is going to continue to move on and thrive,” Pat says. “That’s a great feeling.”

Go watch the entire conversation with Jennifer Shike on YouTube or go listen to The PORK Podcast anywhere podcasts are found to learn what Pat and Phil Hord have to say about how they prioritize health of mind, body and spirit in order to face day-to-day challenges as they arise, how they work with grower partners and ultimately find purpose in things bigger than themselves.

Your Next Read: The Pork Industry’s War with PRRS: Scott Dee’s Take on the Past, Present and Future

The Top 10 PORK Stories of 2024

Mon, 30 Dec 2024 20:45:48 GMT

Which stories caught the most attention in 2024? Here’s a look back at the top 10 stories on PorkBusiness.com in 2024.

1. Louisiana Kids Discover a New Path in Life Through Showpigs
To most, it looked like a bunch of run-down pig pens. But Nick Adams fell in love with the worn-out facilities at Franklin High School. Although he knew it was going to take a lot of work, all he could see was opportunity when he said yes to becoming the new FFA adviser in Franklin, La.

“When I came here, nothing was how it needed to be facility-wise,” Adams says. “We’ve made such a big transition over the years, in facilities alone, whether it was getting them cleaned up or getting new things built.”

Shortly after he started at Franklin, he invited some colleagues to visit. As they walked around and came upon the pig pens, he laughed and told them, “These things will never be full.”

Little did he know they’d soon be overflowing. Adams didn’t grow up showing livestock. He competed in FFA career and leadership development events. However, one of Adams’ good friends thought he should fill up those pens, so he donated three pigs to the program to get them started. Three pigs became seven. Seven became 18, and the rest is history. Read more.

2. Don’t Say the S-Word
I wanted to be defensive. I wanted people to understand why it’s important and why it matters. I wanted to find a way to explain “our side of the story.” Read more.

3. How an Iowa Family is Passing on the Farm from One Generation to the Next
Before he went to kindergarten, Joel Huber was already the topic of conversation among farmers in Wellman, Iowa. Read more.

4. Winter Storm Survival: A Nightmare for Livestock Producers in Western Illinois
Despite nearly 24 inches of snow, below-zero temperatures and raging winds that some people are affectionately calling “Death Storm #2,” Illinois livestock producers are finding ways to overcome the horrific conditions. Read more.

5. You Can Go Now
In the list of the hardest things you’ll do in life, sending your firstborn to college may be toward the top. Read more.

6. A Heart for Lexi: 4-Her Sells Market Lamb for Over $27,000 to Help Friend in Need
In December 2023, 11-year-old Lexi Anderson’s life turned upside down when doctors diagnosed her with restrictive cardiomyopathy and placed her on a heart transplant list. Read more.

7. 5 Options to Consider During Farmland Transitions
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. Read more.

8. How a Group of Veterinarians Helped Save a Rural Iowa Community
Fifteen years ago, Audubon, Iowa, was the typical picture of rural decline. Disheveled downtown buildings and vacant storefronts signaled the death of small businesses and a sense of community. Then, a small group of people decided to change that. Read more.

9. Snout-to-Tail Strategy Sells More Pork in Chicago Grocery Chain
When you walk into a Tony’s Fresh Market store in the Chicagoland area, you’ll quickly discover it’s not a typical grocery store. To say they use everything except the oink might sound cliché, but at Tony’s, it’s true. Read more.

10. Barn Hero Summer Doty: Prioritizing Pig Care
Summer Doty hasn’t saved anyone from a burning building or led an army into battle. She hasn’t jumped into the path of an oncoming train. Still, the work she does at Islercrest Farms is proof not all heroes wear capes. Read more.

What the Next Generation Can Do to Prepare for Transition Planning

Thu, 19 Dec 2024 17:43:20 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

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

Thu, 31 Oct 2024 16:06:46 GMT

Before he went to kindergarten, Joel Huber was already the topic of conversation among farmers in Wellman, Iowa. To say he was born to be a farmer is an understatement.

“I’ll always remember Joel as the 5-year-old who could work his way around anything. One time his dad put a governor on their snowmobile to try to slow Joel down. It wasn’t long before Joel figured out how to take off the governor so he could go fast,” says Steve Bohr, a former neighbor and long-time family friend who runs an estate planning business in Lisbon, Iowa. “That type of hands-on work is what agriculture is all about.”

Joel will be the first to tell you he’s a lucky man. From the time he could walk, he knew farming was what he wanted to do. Although he assumed he’d end up at an ag school, he took advantage of an opportunity to play football at Central College and majored in environmental science. He says it opened his mind to new ideas and perspectives. After college, his parents, John and Shirleen, insisted he find real-world experience off the farm before coming back to the family row crop and hog operation in Washington County, Iowa.

“I’m glad I did that,” Joel says. “I spent a couple years as an elevator manager with ADM and a couple years as a maintenance manager at Pella Windows. I learned a lot from both experiences and was able to bring back valuable ideas on employee management to our farm.”

Generation by Generation
Today, Joel is living out his dream on the family farm alongside his wife, Laura; his sister, Jolisa and her husband, Derek; and his parents.

“I knew what to expect from the farm when my wife and I came back,” Joel says. “But farming is unique. My old jobs didn’t demand 24/7 attention. Initially, I wanted to focus more on row crops and less on hogs. As I got into the farm, I figured out for our operation, hogs are a steadier source of income, so we ended up focusing on both.”

From the start, John handed off specific responsibilities for Joel to take over and ‘own.’ Joel’s willingness to be trained and to learn from others helped make the transition easier.

Pigs in the Huber family’s barn.

(Iowa Pork Producers Association)

“Of course, my dad and I don’t see eye to eye on everything,” Joel says. “I wanted to do things differently in some areas, and I was fortunate dad let me. He turned over the employees and new technology. It was my job to make them work. I thought that was a good way to start the succession process.”

Although it wasn’t easy to give up the final say on some things, his dad believed that sharing leadership opportunities was an important step in the process.

“Dad still owns a few pigs and his land,” Joel explains. “My sister and I rent it 50/50 from him. My brother, Jacob, is not interested in the work of the farm, but he is supportive. I think we have a solid succession plan and know where things will transition as mom and dad move on.”

A Proactive Approach
However, that plan just didn’t happen. When John and Shirleen reached out to Steve Bohr with Farm Financial Strategies about 15 years ago to begin the conversation about transitioning the family farm to the next generation, Bohr admits he was impressed with their timing.

“John and Shirleen were very proactive in getting the kids involved in ownership as part of the process,” Bohr says. “Having the foresight to develop a plan and then actually facilitating it while the kids have the opportunity to grow into the situation is paramount. That’s been key to the Huber family’s success.”

One of the challenges when turning over the farm to the next generation is there’s a bit of a misunderstanding of what succession planning is … and what it isn’t.

Succession planning is not estate planning, Bohr explains. These are two very different things that often get lumped together. He defines succession planning as how a family transitions a lifetime of meaningful work in a way that cash flows in this world.

“There’s a financial part of succession planning, and there’s an emotional part. The combination of the two make it really challenging,” Bohr says.

Although Joel’s parents still have some entities and ownership, they’ve turned management and control over to their children while they are in their prime years (35 to 50 years old), he adds.

“To me, that is succession planning. That’s what we need to do to give people the opportunity to achieve business success,” Bohr says.

John and Shirleen’s entities are backed with shareholder agreements and operator agreements that limit what outsiders can do.

“Whether it’s a divorce, bankruptcy, a creditor, or if one of them just retires or dies, a shock to the system will not cause that family grief. Right now, they have enough problems in the pork industry without a shock to the system creating an additional earthquake in their world,” Bohr says. “To John and Shirleen’s credit, they’ve gotten out of the way for the most part to let Joel and Jolisa take it to the moon or run it into the ground.”

The Huber family’s farm

(Iowa Pork Producers Association)

However, it’s hard to step aside and hand over control. All too often, parents hold on to everything until they die, but Bohr says that’s detrimental to a good succession plan if they want the farm to continue.

“It’s a balancing act to get that next generation going. Arrogantly, we think we’re the best and our kids don’t do it as well as we will,” he points out. “The fear of something bad happening keeps us from transitioning, from doing what we really probably should.”

Why You Need a Succession Plan on the Farm
The future of agriculture hangs on the individual family’s ability or inability to have a good succession plan, Bohr believes.

Today, 33% to 35% of all land is owned by people ages 75 and older. Meanwhile, 66% is owned by people who are 65 years old. If those people hold on to all that property until they die (and they’re living longer), Bohr wonders what agriculture will look like when this huge amount of wealth transfers at values that are not cash-flowable?

“One of our biggest nemeses, ironically, is one of our best tools – basis step-up. That concept in agriculture runs the risk of gutting us,” he says. “It often takes people 50 years to build an estate. Then, when they die, they expect the next generation to buy it out in nine months. That same asset that took somebody 50 years to build now doesn’t cash flow because of what’s going on in the subsidization of the land market. We’re building ourselves an enormous problem that is unsustainable for the next generation to be able to take it over.”

That’s why families need to begin planning early to put the next generation in a position to be able to compete and afford to grow, buy assets and make a living.

“We’re failing miserably at that right now,” Bohr says. “Farming is a tough business, physically, mentally and financially. You don’t want the reward at the end to be upset by a lack of thought or a lack of planning.”

Where Should You Start?
In addition to helping navigate everyone’s feelings about the process, Joel says having an advisor’s insight has been very important in understanding regulations, estate taxes and more.

“As with everything there is a cost, but his expertise is worth it,” Joel says. “There are so many rules and regulations, and the estate tax exemptions are a moving target. Having someone who knows what’s going on and how to best help you is invaluable.”

Advisors can help answer the big questions such as how can we plan to best protect the farm? How do we pass it on to the next generation?”

Joel and Laura Huber at their farm near Wellman, Iowa.

(Iowa Pork Producers Association)

Bohr recommends starting the process by building a strong team. In a perfect world, he encourages producers to interview three different consultants, three different attorneys and three different accountants to find the right people for the team.

Don’t Overlook This Part
Developing a succession plan takes time and hard work. So, don’t waste that by failing to communicate it with your family, Bohr advises. His company offers a family meeting for every family, and only 60% of the families take them up on it. The other 40% don’t want to rock the boat.

“If we know there’s an issue, we may as well deal with it,” he says. “It’s like driving a combine. If you start hearing a noise, you don’t hammer down and think it’s going to go away. It’s going to get worse, and eventually it’s going to break.”

He admires how the Huber family has involved all three kids in various capacities in the process.

“Everyone knows their role,” Bohr says. “They may not always agree, but they’re on the same page and their plans align with their goals.”

They also keep talking. An initial plan has been established, but it’s re-evaluated and reviewed as the operation and their lives change.

“To be honest with you, the Huber’s plan wasn’t ‘done’ 15 years ago when we first sat down to talk. It’s always evolving,” Bohr says.

He reminds producers nobody has a crystal ball to know what the future holds. That’s why he encourages people to plan with an exit strategy in mind.

“Most people plan, thinking of it in terms of getting into it,” Bohr says. “I believe we’ve got to think about how we’re going to get out of it.”

How do you know if you’ve made the right succession plan? He says time will tell.

“Everybody’s goals are different. There is no one right plan,” Bohr says. “Aligning your goals with an action plan, whether you’re taking action now, later or a little of both, creates harmony — and that’s a successful succession plan.”

Your Next Read: Where Will the Next-Gen Swine Farm Managers Come From?

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

4 Quick Succession Planning Tips With Attorney Jim Angell

Fri, 23 Aug 2024 20:46:39 GMT

A farm’s succession plan is complex. And with ever-changing laws and family dynamics, it can be hard to make sure everything gets taken care of in the process. Kansas attorney Jim Angell recently joined the Top Producer podcast to share four things you should consider for your operation’s transition.

1. Trusts For Gifting
The IRS Lifetime Gift Tax Exemption is currently $13.6 million, but there’s speculation that limit could be cut in half in 2026. If you’re going to be gifting a considerable amount before the end of next year, there are two types of trusts he recommends putting in place.

“We might use an entity, an LLC or Limited Partnership, and do some transfer gifting on that,” Angell says. “Or, we could use what’s called an Intentially Defective Trust. That allows you to maintain the income at the first level, freeze the assets and pass those on to the next generation. We use that quite a bit.”

2. Include Your CPA
Angell says your CPA is a more valuable asset in this process than you may think.

“One of the first things I do is if I don’t have the CPA in the first meeting, I make darn sure the CPA is in the second meeting,” he says. “The clients are out there grinding, surviving, and doing what they do best on the farm. The CPA professionals have a much better understanding [of the overall finances] generally, and so we rely on them very heavily in doing the advanced tax planning.”

3. There’s No Such Thing As One Size Fits All Succession Planning
It’s important to remember fair isn’t always equal, especially in situations with on-farm and off-farm children.

“We’ve got to find a way to keep the farm intact and transition it potentially to to the farming child, but at the same time be fair to the remaining heirs,” Angell says. “That farming child may end up with more equity, but they’re going to end up with a bigger challenge of the debt, worrying about drought, making the operation work, taking the risk and taking the lower return. So, when you really step back and look at it, if you’re looking at it economically, some of these children that are getting less value after the estate is fully settled are really better off in the short run.”

4. Set Up Protection From Unintended Beneficiaries
In some situations, a parent will remarry after the other passes away. Angell says it’s important to make sure this doesn’t have an unfortunate outcome for the farm children.

“Most estate plans, especially the larger ones, are going to need some protections built in there for at least a certain portion of those assets being held in an irrevocable trust upon the first death,” he says. “We try to push a pre-nuptual agreement and get the kids involved in for when dad does decide to remarry. Those situations can potentially tear families apart and the farm apart.”

Hear more from Angell on the Top Producer podcast

Four Experts You Need On Your Succession Planning Team

Thu, 01 Aug 2024 15:36:15 GMT

When it comes time to get serious about succession planning, many operations turn to their lawyer to kick off the process. And while that’s a good place to start, Matt Gunderson, vice president of Farmers National Company, wants to make sure your journey doesn’t end there.

“A lot of times when folks think about estate planning, they think, ‘Well, I just need to go see an attorney, right?’ And to some degree, that answer is correct. But what we try to talk about is how to set up a good team,” he says.

Gunderson recently joined an episode of the Top Producer Podcast to share the four professionals he recommends for any succession plan, likening the process to building as sturdy of a stool as you can.

“What’s the best, most sturdy type of stool out there? Well, it’s a four-legged stool,” he says. “Think about that farm or ranch land asset as the seat. Then we start looking at the four legs.”

The Four Legs
1. Attorney
Gunderson stresses the importance of choosing the right lawyer for this process.

“There are different types of attorneys out there. So one, finding an attorney who does estate planning is important. But two, it really comes down to finding an attorney who understands estate planning and agricultural assets,” he says.

Be sure to also consider the state your land is in, and not just where you reside.

“We’ve seen where attorneys in one state drafted something according to that state’s laws, but where the land is at as a completely different example in terms of what that looks like from an estate standpoint,” Gunderson says.

2. CPA
He shares the second leg of the stool should be a CPA. This expert will help you understand the plan’s current tax implications and will also stay up to date on how that could change.

3. Financial Planner
The third leg is a financial planner. Financial planners can help you in some ways a CPA can’t. According to Gunderson, this role looks at future considerations for the plan, such as what it looks like for the upcoming generations.

Just as with attorneys, however, there are different types of financial planners, and it’s important to find one familiar with agriculture and the various accounts you will have.

4. Professional Manager
The fourth leg of Gunderson’s estate planning stool is a professional manager for the property.

“A professional manager can help take care of that land asset for the next generation if they’re not actively engaged in farming or they’re not actively near the property,” he says.

Gunderson adds that after this team is formed and your plan developed, you shouldn’t set it and forget it.

“Don’t throw it on the shelf or put it in a drawer. You better get that team back together every three years to look at that plan because things change, laws change and family dynamics change,” he says. “Was there a birth? Was there a death? Was there a marriage or divorce? Get that team back together to make sure that it’s up to date or it can still come back and bite you in a negative way.”

Catch up on episodes of the Top Producer Podcast

Farm Succession: Don't Neglect The Value Of Planning

Fri, 14 Jun 2024 20:30:00 GMT

The week of June 10, Farm Journal is celebrating the next generation of American agriculture. Our goal is to encourage you to plan for the future and cultivate multigenerational success through the transfer of skills and knowledge. Think tomorrow, act today to align your asset, resource and financial legacy.

Do you want to know the costliest mistake a farmer can make when it comes to safeguarding the future of their operation? It’s neglecting to plan or having an overly simple plan, says Jim Angell, an attorney with Kennedy Berkley.

There are all sorts of reasons farmers are lax about succession planning. Maybe the patriarch doesn’t want to give up control or face mortality. Maybe some of the kids don’t get along or the parents are stymied by the thought they need to treat all their kids equally.

“Farmers have spent 35 years in survival mode, and succession planning has barely registered,” he says. “The past five or six years they have gone from surviving to thriving, but it’s still hard for them to believe a sophisticated plan is necessary.”

That sophistication comes into play when deciding how to treat farm and non-farm siblings.

“Fair and equal are not the same,” Angell says. “The farming child(ren) needs to be provided with some advantages in order for the farm to survive. They need more value to keep the farm going, but there’s a difference between value and cash.”

Angell advises farmers separate the operational (business) side of the farm from the legacy (land). Equipment has to stay with the operational side, for example.

When it comes to the land, if it’s important for each child to own land, divide it up in tracts and don’t put multiple kids on a tract, he adds.

A succession plan often includes several documents, one of which should be a buy-sell agreement , Angell advises. If you are in business with someone, you should know how to exit the arrangement. A buy-sell agreement is a legally binding document between co-owners of a business that spells out how a business should be transferred if a co-owner leaves the business willingly or is terminated.

Legal Vs. Relationship Pieces

Speaking specifically to the next generation, Angell says don’t hesitate to push for communication. In his practice, he usually sees the next generation first to work on their estate plan, and then they bring in the senior generation.

For the senior generation, don’t believe the same philosophy your dad used: You get what you get, and you don’t throw a fit.

“ Please communicate ,” Angell says. ”Currently, my firm is involved in 10 to 15 disputes where land was distributed equally and kids can’t get along or an LLC was set up but there is no way out.”

The good news is there are legal devices to do whatever a farmer wants to do. The key is using the right mechanisms for the relationship pieces.

“Is it worth it to jeopardize your children’s relationship for any reason?” he asks.

Want more insights to plan for the future and be a leader in your field? Sign up to receive Farm Journal newsletters.

5 Conversations Every Family Should Have Before A Farm Transition

Thu, 13 Jun 2024 20:40:11 GMT

The week of June 10, Farm Journal is celebrating the next generation of American agriculture. Our goal is to encourage you to plan for the future and cultivate multigenerational success through the transfer of skills and knowledge. Think tomorrow, act today to align your asset, resource and financial legacy.

Before you handover the keys or step aside for the next generation, make sure you and your family are properly prepared for what comes next. Elaine Froese is a farm family transition expert, speaker and host of the Farm Family Harmony Podcast . She says we’re in the middle of agriculture’s “great wealth transfer” but there’s a serious lack of communication between generations.

“Often there are so many plans to be started that farmers are stymied, overwhelmed and anxious,” Froese says. “I’ve said many times that procrastination and conflict avoidance are killing agriculture.”

For those ready to be proactive in preparing for a farm transition, she recommends these five steps.

1. Calculate Your Income Stream.
Froese says farmers need to determine how they’ll maintain and secure a stream of personal income. Is that coming from their personal wealth or a combination of personal wealth and income from the farm. Once that’s sorted, farmers need to figure out what their living expenses really are apart from the farm.

“They have to figure out their own lifestyle costs first, where they’re going to live and what their lifestyle is going to be,” Froese advises.

2. Define Your Role.
Retiring farmers need to clearly define how they’ll show up for the operation after “retirement” from running the day-to-day. Does that mean fully stepping away, serving as a manager or simply as labor when needed, Froese asks.

“Many farmers who are male have their identity tied up in what they do,” she adds. “They have no capacity or understanding of how their roles are going to shift as they age in place at the farm.”

3. Talk to Your Spouse.
Retirement isn’t a singular decision. Froese says it’s important to discuss the transition to retirement with a spouse or significant other. He or she might have their own ideas of what will or should happen in retirement.

“They need to embrace a vision with their spouse because if the older farmer does not want the same thing as the older farmer’s spouse in regard to what their future role is then that transition plan is essentially stalled and not going anywhere,” Froese adds.

4. Build a Business Plan.
During a transition there will be differing opinions and passionate feelings about the direction of the farm. Froese says that’s expected and farmers need to remember different isn’t wrong, it’s just different. She recommends next-generation farmers bring a business or enterprise plan to the table that explains their intent for future growth.

“When you bring somebody back to the farm you need to generate at least $500,000 in additional gross income to support that new family,” Froese says. “People often do not pay attention to how many families a farm business can support and the level of support expected.”

5. Discuss Future Debt.
As a farmer transitions out of the principal operator role and focuses on retirement, often their risk tolerance for debt decreases. Taking out loans against the farm’s assets for expansion or technology upgrades might feel risky or even irresponsible. Froese says debt loads should be discussed and decided upon early in the transition.

“Many older farmers don’t want anymore debt, and they have it in mind they don’t want to pass debt on to the next generation,” she says. “But where is it written that the younger generations can’t manage the debt?”

Want more insights to plan for the future and be a leader in your field? Sign up to receive Farm Journal newsletters.