Keys to Successful Farm Transition Planning
Many use the terms “farm estate planning” and “farm transition planning” interchangeably. There are some important differences. Estate planning can simply be what happens to assets when one generation passes. Transition is the important planning that allows the successors the opportunity to keep that farming or ranching operation in business and moving forward.
Transition, therefore, is the planning process that includes what happens to ownership when one generation steps aside and also adds the planned transfer of the management of the operation to the successor. Transition planning includes not only the goal of successful succession of the farm/ranch, but also a strategy to meet the retirement needs of each generation.
In this Center for Agricultural Profitability article, extension educator Allan Vyhnalek reviews many of the factors a farm or ranch family should consider when attempting to execute a successful transition in their operation.