Typically, farmers and their families work the farm operation together, sometimes as soon as a young son or daughter is able to walk. True ownership of a family farm takes many forms — and many farmers don’t intend to “retire” until the earth calls them home. This makes farm succession and exit planning unique.
While many farmers know and hear about the importance of estate planning, the discussions are more underlying understandings, rather than directly communicated or written out. This is where your financial guidance can be critical to the proper strategies needed to pass the farm onto successive generations.
Even though your client may have placed estate planning as the highest priority, generating and funding effective succession strategies can take years.
Your clients generally have two choices: pass the farm to family members or find the right buyer for the operation.