Many farmers plan to one day pass their farms down to their children. The goal of keeping the land and the business in the family is incredibly important, especially if this has been happening for generations.
In today’s environment, it is important to have formal plans in place to ensure a smooth handoff to the new generation when the time comes. The process of preparing for this to happen is known as farm transition planning.
A way to pass on the farm
Farm transition planning is the process of getting all the tools and resources in place for handing off the farm to heirs. The goal is that the next generation will take over the operations and continue the farm as it is now under you. The farm transition plan helps ensure that happens and allows you to help your heirs avoid potential issues.
Gives you options
Most people wish to pass their farm to their children with the goal of them running the business. However, they will need to learn how to run it. Through farm transition planning, you can help bring them into the business before you are ready to completely hand it over. This overlapping time gives you a chance to ensure your children are fully ready to take over the responsibility when the time comes.
How to start
The process of planning begins with setting your goals. From there, you can bring in professionals and others to help you devise the plan. You will set up legal documents and handle all the necessary steps to prepare for the transfer of the farm to the next generation.