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Legacy Farm Plan From The Cloud
Planning for farm succession
Increase the odds of creating a successful legacy by developing business transition plans.
This article from Midwest High Plains/Midwest Journal points out the importance of careful planning to make a successful transition to the next generation.
At least one out of five farmers doesn’t have a clue what will happen to their farm if they should die or have to stop farming. With the large amount of assets involved in a farming operation, why wouldn’t one have a plan for the continuation of the farm after a death of an operator?
Speaking at the recent Commodity Classic, Bryce Knorr, senior editor for Farm Futures magazine, was part of a panel for the “What to do now for a successful farm transition” session. He was joined by Darren Frye, president and CEO, Water Street Solutions; Arlan Suderman, senior market analyst, Water Street Solutions; and Brian Hensley, legacy advisor, Water Street Solutions. Knorr recently surveyed farmers about their farm succession plans.
“Less than half of farms actually have a plan. For the most part what this plan is some sort of estate plan or some sort of will,” Knorr said. “But it’s not really something for making sure that the farm continues as an entity and what’s even more important that it continues as a going business concern.”
Knorr said farmers are excellent at protecting their assets, and farmers hate paying taxes while they’re alive and the idea of paying taxes when they are dead is not the most thrilling concept either.