Keeping a farm in the family is a rewarding experience but it can also be a challenging one. That’s why it is important for farmers to ask the right questions before the process can take place. The following queries will allow a transfer to occur without incident and it is always in the best interests of a farmer to get started as early as possible.
1) Who Should Be Providing Help?
In other words: what team is being assembled for the job? Selecting a team of advisers that has the necessary experience when it comes to accounting concerns and legal issues is crucial. These advisers should be providing the help that is needed while offering an objective point of view.
2) What Is The Desired Objective?
The needs and wants must be prioritized. For example, parents often feel as if they are being pushed aside when a farm transfer is taking place. They may wish to have a continued role. These objectives may not align with the objectives of the next generation and this is something that will have to be discussed.
3) What Is The Farm Actually Worth?
A shocking number of farm owners live in blissful ignorance as far as the true value of your farm is concerned. Don’t make the mistake of believing that the farm is going to be valued the same as a similar property. Detailed financial reports about the earnings and overhead costs must be utilized.
4) How High Are The Taxes?
A failure to consider tax complications is a common mistake that is made during a farm transfer. Tax laws change on a regular basis and it is pivotal that families remain flexible.
5) Who Is Going To Be Handling Day To Day Operations?
Leadership and management responsibilities that used to fall onto the parents will eventually be passed down to the younger members of the family. That’s why it pays to find out exactly who is going to be handling these duties before the transfer actually starts to take place.
For more information about this topic, please be sure to contact AgriLegacy as soon as possible.
