Passing On the Farm
-- Thought Leadership
In both the U.S. and Canada, the average age of a farmer is in the mid- to late-50s. About 91.5 million acres of U.S. farmland (10%) is expected to change ownership in the next five years, most of it via trust agreements.
In Canada, a whopping one-third of farms is expected to change ownership in the coming years, with 62% of those farmers transferring their farms to family members.
Despite the anticipated wave of retirement, research indicates that a high number of farmers don’t have succession plans: 40% of U.S. farmers did not have an estate plan and 73% hadn’t identified a successor (farmers with gross sales over $250,000 were almost 10% more likely to have identified a successor than smaller farms). In Canada, just 30% of farmers have a succession plan.
Indeed, the idea of embarking on such a complicated process can be overwhelming, which is one of the reasons farmers often avoid the topic. Other reasons for postponing succession planning include lack of understanding about the process, insufficient time, fear of conflict among families, an unwillingness to ask for help and concerns over costs.
Visit http://myFarmLife.com/pass and sign up for the FarmLife email newsletter, and you’ll get instant access to the exclusive, FREE eBook download, “Guide to Succession Planning: Passing on the Farm,” with advice from top experts in both the U.S. and Canada on:
- Protecting your heirs, assets and farm
- Minimizing tax burdens
- Planning for retirement
- Structuring your farm to help transition assets
- Assembling a succession planning team
- Making the process run smoothly
Just visit http://myFarmLife.com/pass to sign up and receive your FREE eBook today!