You’ve worked hard to keep your farm alive. You’re proud of it. It’s like a child to you. And, like any child, you think about its future. You want what’s best for it, and you want to ensure it will be in safe hands after you’re gone. This farm is your legacy. It is years of sweat and struggle and pride all lined up in well-fertilized soil. The very importance your farm holds in your heart is the reason why succession planning should be happening as early as possible. The earlier you begin planning for your farm’s future, the better trained and equipped those people are to carry on your life’s work.
Let’s take a quick step back and talk about the function of succession planning. This is an important selection process wherein the owner(s) of a farm carefully choose and prep people for future jobs. It is a way to create specialized workers who you trust to carry on the farm after you retire. As you select people to fill future gaps on the farm, those workers become ultra specialized for the position they are training for. They learn the specifics of their jobs like a fine tuned guitar, making them completely ready and fully capable when the day comes for them to start working independently. Succession planning also helps you prepare for changing ownership of the farm. There are legal issues, transference red tape, and hefty loans to take into consideration.
Farms are a serious investment. In fact, most people plan to use the equity from the farm as a large chunk of their retirement. The successful transfer of a farm to the younger generation requires loads of financial planning as well as a deep understanding of the legalities related to transferring the deed. Perhaps the biggest reason to plan your succession early is so that you can retire comfortably while smoothly handing the farm down and avoiding any expensive tax charges or legal problems.
Start your succession planning early! It’s a long and confusing process to gather information, generate your viable options, select one option, develop a plan, and implement the plan you created. With all of the serious fine print to consider, it’s important to start working with a professional on this matter as early on as possible. It’s the nicest way you know that you have set your family up for success for generations to come while resting assured that your retirement is on the right track as well.
At AgriLegacy, we are committed to keeping the family on the farm. For more information and tips on how you can successfully plan the family succession of your farm, contact us. We will be more than happy to help you plan ahead for your family’s future.
