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Five steps to pass the farm to the next generation
 
Farm succession planning should not begin when the head of the family dies, said Wesley Tucker, University of Missouri extension agricultural economist and success planning coordinator.
“Too often, planning starts the day after the funeral,” Tucker said. “In addition to straining family relationships, this also increases the likelihood that the next generation will fail.”
USDA data shows that two-thirds of U.S. farmland is owned or leased by someone over 55. Control of a third of that land will change hands in the next 10-15 years. Most farm family members who work on the farm may do so for decades with no clear plan for transfer.
Tucker suggests these core guidelines when providing assistance with succession planning:
· Encourage the successor to gain experience and education off-farm. Expose that person to other farms or business and memberships in professional groups.
· Have a trial work period. At the end, do an honest evaluation of all parties. Keep family and business relationships separate. “Being flesh and blood does not guarantee success,” Tucker said.
· Begin the path to management and ownership early. Those who come back to the farm should not sign up for a life of servitude without clear expectations of future rewards.
· Involve the younger generation in financial decision-making. Finances are usually the last part of the business transferred and often does not happen until the day after the funeral, when the checkbook is seen for the last time, Tucker said.
· Plan for the next generation to become the majority owner and manager. Let the senior family member pass the reins to the next generation and bring in the next generation.
9/14/2021