Succession Planning

The World Needs More McArthurs

Mon, 06 Apr 2026 19:26:55 GMT

There’s a new song in country music that’s striking a chord with American farm families.

“McArthur,” sung by Hardy, Eric Church, Morgan Wallen and Tim McGraw, tells the story of a farm passed through four generations of the same family. Each verse introduces a new McArthur, carrying the land forward in his own time, shaped by different circumstances but tied to the same piece of ground.

That’s the same story many farmers are living today. And if you haven’t heard it yet, take a listen.

John McArthur

The song begins with John McArthur, a man working the land with a mule and a plow to provide for his family. As the first generation, John spends his days laying the foundation of the farm. He doesn’t know what the future holds for the operation, but he knows the work is worth it.

Every farm has this first generation: the person who gave the farm its start. Our grandparents or great-grandparents built the farm out of necessity without knowing what was ahead.

They planted the first crops, cleared the first fields and figured things out as they went. The decisions they made might not have seemed big at the time, but they laid the groundwork for the generations that followed. Even without a map, they knew the farm was something worth building and passing on.

Junior McArthur

Next comes Junior McArthur, the son who steps up to take over the farm but is sent off to war and never returns home.

He represents the second generation: the ones who take over a farm that’s already established but face challenges much different from what their parents experienced. Where John built the foundation, Junior inherits it and has to figure out how to keep it going.

Jones McArthur

After Junior comes Jones McArthur, the third generation to farm the same ground. By the time it’s his turn, the farm is running smoother, but the problems he’s dealing with aren’t the same ones his dad faced. He represents the generation trying to respect what was built while figuring out how to make it work in a more modern world.

In the song, Jones is also the one trying to pass along the lessons he learned growing up on the farm. He understands the value of the land and the work that went into building it, and he tries to teach his son the same thing.

But his son comes home from college seeing something different. Where Jones sees a family history, his son sees the dollar signs tied to the land.

Hunter McArthur

Finally, the song introduces Hunter McArthur. He’s the fourth generation, the one now standing in front of the decision many farms eventually face.

In the lyrics, Hunter is presented with a deal that would turn the farm into a neighborhood. It’s a tempting offer. After generations of hard work, the land is suddenly worth a lot of money.

Hunter represents the generation many farms are looking to today. The farm is established and the land has significant value, but the question becomes what to do with it next.

For many young farmers, this generation faces a different set of decisions from the ones before them. They have more opportunities off the farm and often more outside pressure pulling them in different directions. At the same time, they’re inheriting or buying into farms that have decades of work behind them.

A Familiar Tune

At the end of each generation’s part in the song, a line is sung: “When you pass on, what are you going to pass down?”

Farming has always been about passing things along. Each generation takes what the last one started and tries to make it better, but that chain only works if someone is willing to take the next link.

Today, the pressures on the next generation are real. Land values keep climbing, development keeps pushing farther into the countryside, and, for some families, the offer to sell the farm is hard to pass up. But most farms exist because someone in the previous generation chose to keep it going. They made improvements and worked through challenges with the idea that the farm would be there for the next generation to build on.

The world could use more farmers like the McArthurs. So, when it’s time to think about the next generation, ask yourself this: When you pass on, what are you going to pass down?

For more on succession planing, read:

Don’t Push Pause: How a Near-Fatal Accident Made Our Farm Succession Plan Crystal Clear

Thu, 05 Mar 2026 14:57:34 GMT

The last Friday in February was supposed to be a victory lap for a winter well-spent. It was a rare 65°F gift from the Illinois sky. The kind of afternoon where the sun feels like a promise of the spring to come.

My husband, Scott, and our youngest son, Jacob, spent the afternoon moving cattle between sites. It’s a project that usually takes three or four hours, and as any farmer knows, the cattle rarely cooperate. But Jacob did. He was right there, shoulder-to-shoulder with his dad. Our oldest son, Tyler, was home from college for the weekend, helping on the dairy with cattle work. It was one of those perfect, productive days where everyone was basking in the sunshine, the rhythm of the farm moving in a steady, beautiful cadence.

When the clock hit 5:00 p.m., Scott was ready to call it a day. Our local high school boys’ basketball team had made it to regionals, and we wanted to be there to cheer them on. We climbed into our SUV, chatting about the chores we’d finished and enjoying the lingering warmth of the day.

We were only a mile from our farm when the world shattered.

It happened in a blink. A truck made a mad dash across the four-lane highway, blindsiding us. There was no time to swerve, no time to brake. The police report would later confirm what we already knew: there was nothing we could have done.

Everyone tells you that life can change in a split second, but until you are sitting in the wreckage of mangled steel, surrounded by a dozen deployed airbags and the smell of gunpowder and dust, you don’t truly understand it. As we hit, I felt the impact vibrate through my very bones. I immediately started to pray. “We will be okay. God, make us okay.”

Through the haze of smoke and shock, Scott’s voice was the only thing I could hear. He was a trooper, his own safety forgotten.

“Karen, are you okay?” he asked, over and over.

I wanted to scream that I was fine. I wanted to tell him I was right there. But the shock was a physical weight. My mouth opened, a moan escaped, but the words were trapped behind a wall of trauma. I couldn’t speak.

The rest of the evening was a blur of sirens, flashing lights and the sterile white walls of the ER. The ambulance took me away; the tow truck took what was left of our vehicle. We spent the night under fluorescent lights, but we walked away. We got to go home.

In the days that followed, a deep, heavy appreciation for life settled over our house. I am thankful to be writing this story, though I would give anything to have never lived it. But the most emotional moment didn’t happen at the crash site; it happened at our farm.

(Karen Bohnert)

Our children asked the question every farm kid fears: “What would happen if both of you had passed?”

I cried. But for the first time, I could answer them with certainty. I told them about the will. I told them it was all outlined, all documented. It took me losing both of my parents and my brother — and writing about other families’ succession plans gone wrong for years — before we finally sat down and finalized our own a decade ago.

I think back to my own parents. It took them losing their own son — my brother — in an automobile accident to finally lean forward and be brave enough to talk about their own will. They put a plan together soon after and revised it a few times over the years. When the time came that we eventually lost our parents, my sisters and I were so incredibly thankful we did not have to worry about the logistics during our grief. My parents had it all documented. They gave us that peace of mind.

Farmers, I am pleading with you: Don’t push pause.

Don’t wait for a sunny day to have the conversation. Or a rain day. The highway doesn’t care about your schedule. Don’t wait because it’s an uncomfortable conversation; it will never get easier. Don’t wait because you aren’t sure what is “fair” or what is “best.”

Start the conversation today. Meet with a lawyer. Get it documented. You can always change and revise it — we already have once since we started.

I am so incredibly thankful that today, my kids are out in the dirt helping on the farm instead of sitting in a lawyer’s office reading a will. I am thankful they didn’t lose their parents on an Illinois highway. But mostly, I am thankful that if the worst had happened, they wouldn’t have been left in the dark.

Don’t wait. Your legacy is too important to leave to chance.

The Succession Gap: Why Two-Thirds of Farms Face an Uncertain Future

Tue, 03 Mar 2026 20:18:09 GMT

Farm Journal recently reported that 44 million acres of U.S. farmland are expected to change hands in the coming years - nearly 15% of American cropland by 2030.

That’s a staggering number. But what concerns me most isn’t just the acreage. It’s what that number represents: leadership transition, ownership transition and decision-making transition happening all at once across the country.

When I look at the accompanying data, I see both opportunity and vulnerability.

According to the Farm Journal Seed & Planting Survey and Consolidation Index Predictive Model Analysis, only 34% of growing operations have a formal succession plan. Among benchmark producers, that number drops to 29%. For operations identified as at-risk, just 21% have a documented succession plan in place.

Let that sink in.

Even among farms positioned for growth, two-thirds do not have a formal plan for how leadership and ownership will transition. And nearly four out of five at-risk farms are operating without one.

At the same time, consolidation risk is not limited to smaller operations. Farms under $250,000 in gross income show a 58% consolidation risk. Farms between $250,000 and $500,000 show 48%. But even operations in the $1 million to $2.5 million range carry a 32% risk. And those between $2.5 million and $10 million still sit in a baseline consolidation risk zone of roughly 27–30%.

In other words, income alone does not protect you.

Succession gaps, management transitions and strategic exits are driving consolidation regardless of size.

I’ve spent my career working with agricultural families navigating generational transition, and I can tell you this: consolidation rarely happens overnight. It happens when pressure meets unpreparedness. A health event. A lender conversation. A market downturn. A disagreement that was never resolved. A next generation that was never fully developed or clearly empowered to lead.

Agriculture has always been unpredictable. We all understand that. Weather changes. Markets move. Policies shift. But what feels different right now is how layered the uncertainty has become. Interest rates have restructured balance sheets. Input costs remain volatile. Capital demands continue to rise. Technology expectations are accelerating. And the average age of the American farmer keeps climbing.

Generational turnover is not something we can push off for “someday.” It is happening now.

So, here’s the question I would ask any farm leader reading this: If something unexpected happened tomorrow, would your operation be okay?

Would there be clarity about who makes decisions? Would ownership be clearly defined? Would compensation and reinvestment policies be understood? Would lenders feel confident in your continuity? Would your successors be prepared - not just present - to lead?

If you hesitate in answering that, you are not alone. But hesitation is a signal.

The data in the Farm Journal analysis tells an important story. Growing operations are more likely to try new technology. They are more likely to plan land investment. And they are more likely to have formal succession plans in place. That is not coincidence. It reflects intentional leadership.

The leaders that plan tend to think about the long term - not just the next growing season. They understand their profitability by enterprise. They are disciplined about capital allocation. They define leadership roles. They have hard conversations before circumstances force communication. They build clarity into the business so that transition strengthens it rather than destabilizes it.

Succession planning is often misunderstood.

It is not simply an estate planning document. It is not a will tucked in a drawer. It is not something you address only when someone retires. It is a business discipline.

It requires clarity about management transfer and ownership transfer - and those are not always the same thing. It requires fairness, which is not necessarily equality. It requires governance structure so family conversations don’t become a business crises. It requires intentional development of the next generation so leadership transition feels earned and prepared, not assumed.

And perhaps most importantly, it requires timing.

Consolidation favors clarity. It favors farms that reduce ambiguity before outside forces expose it. It favors operations that are structured - not just successful.

One of the most revealing pieces of the consolidation data is that even higher-income farms carry measurable risk. A $3 million or $5 million operation is not immune. Scale does not eliminate vulnerability if leadership transition is unclear or strategic direction is undefined.

The 44 million acres projected to change hands represent a defining moment for American agriculture. Some families will use this season to strengthen continuity and expand. Others will find themselves reacting - not because they lacked work ethic or competence, but because they delayed putting structure in place.

Planning does not eliminate uncertainty - but it does provide framework and stability.

It allows you to make proactive decisions rather than reactive ones. It gives lenders confidence. It gives the next generation clarity. It protects family relationships. And it preserves optionality.

If your farm is truly okay - strategically aligned, financially transparent, leadership-ready - then planning becomes a growth tool.

If it’s not, planning becomes urgent.

Either way, it matters.

Knowing the data should never create paralysis. Understanding your consolidation risk, your succession gaps and your financial position gives you something incredibly valuable: choice. When your business structure is clear and your succession plan is thoughtful but flexible, you can pivot as markets shift, opportunities emerge or circumstances change. You may not be able to eliminate uncertainty - but you can position yourself to move through it with confidence.

When Risk in a Crisis Becomes a Turning Point: Lessons from Top Producers

Wed, 25 Feb 2026 16:51:40 GMT

In a volatile agricultural landscape, risk is a constant. Weather, markets, input costs, succession issues, cyberthreats and pandemics all push farm families into uncomfortable decisions. During the “When Taking Risk in Times of Crisis Pays Off” panel at Top Producer Conference, six producers shared how they’ve navigated those moments — and what they’ve learned when the stakes were highest.

The panel, moderated by Rena Striegel, president of Transition Point Business Advisors in West Des Moines, Iowa, included: Edward and Rebecca Dalton, of Dalton Farms, Wakeman, Ohio; Chris Payne of 3B Hay & Straw, Ontario, Ore.; Wendy Alsum Dykstra and Heidi Alsum Randall of Alsum Farms and Produce, Friesland, Wis.; and Ron Rabou of Rabou Farms, Albin, Wyo.

Their stories spanned family tragedy, ransomware, COVID-19 disruptions, organic transitions and bold expansion moves — offering a candid look at what it really means to take risk in agriculture.

Here are five key takeaways from the conversation:

1. Crisis as a Catalyst, Not a Dead End

For several panelists, a crisis didn’t just test their operations; it forced a complete re-evaluation.

The Daltons describe being emotionally exhausted and financially stuck before a Top Producer event pushed them to question everything.

“We were floundering in agriculture,” Rebecca says. “We were not making any money, really. We were just doing it to do it and to continue that legacy. And we were to the point where, like, ‘why are we doing this?’ You know, we only have so many days here. We only have so much time here.”

After a series of family tragedies and persistent unprofitability, they made a bold move to transition about half their acres to organic production. The shift brought much-needed profitability and renewed purpose.

“The risk was I was going to quit farming,” Edward explains. “We needed something and a spark and to just want to farm again.”

In Wyoming, Rabou’s turning point came after the sudden death of his father and the unraveling of a complex family ranch structure. Walking away from a fifth-generation operation was emotionally painful, but necessary.

“We did a lot of soul searching, and I kind of came to the conclusion that the risk for me for not doing something was much greater than actually doing something,” he says.

Rabou and his wife started essentially from scratch, building an organic grain operation and a hunting enterprise, borrowing heavily despite having grown up in a “never borrow” mindset.

2. Numbers Matter — But They Aren’t Everything

A recurring theme was the importance of knowing your numbers while recognizing data alone cannot drive every decision.

“Knowing our numbers is what really helped us,” Edward explains. “If you know your own data front and back, when you really get into those tight situations that you need to be able to think and move… sometimes you just have to move, whether you want to or not.”

Recently, the Daltons made a bold move back to conventional production. The Daltons’ choice to step out of organic was a conscious decision to go against what the spreadsheet said, in favor of their family and team.

“Right now, when I’m hauling $12 beans instead of $40 beans, like we were for a few years, I’m not really happy with that decision, but it was too much time,” Edward explains. “We were losing time with our boys, and that ultimately is why we went back, even though we were making more money per acre.”

Rabou emphasizes having a clear philosophy about leverage: “I have no problem borrowing money on appreciating assets, but I have to be very careful about borrowing money on assets that depreciate.”

For him, land and infrastructure are long-game investments, and he admits he more often regrets the risks he didn’t take than the ones he did.

“I’ve never looked back and said I shouldn’t have made that investment,” he says. “But I have looked back a multitude of times and said, ‘Wow, I wish I would have made that investment.’”

3. Fear vs. Action: Moving When the Window Opens

Panelists agree that fear is often the biggest barrier to seizing opportunity — especially when decisions must be made quickly.

Oregon onion grower and packer Payne describes how, in the middle of a tense meeting, he and another young partner were essentially challenged to buy out older shareholders in an onion packing facility. They had seconds, not months, to commit.

His broader advice to producers now: “Don’t get caught up in fear. If you let fear dominate your thought processes, you’re never going to succeed.”

Preparation helps in those “15-second” decision moments, Payne adds. Continually learning, attending conferences and thinking through scenarios ahead of time gives you a framework so you’re not starting from zero when opportunity knocks.

Edward adds, “You absolutely know how it’ll go if you don’t try. If you’re not willing to try, it’s not going to work. You can’t move forward if you don’t do something or try.”

4. Cyberattacks, COVID-19 and the Power of Systems

For Alsum Farms & Produce crisis came in very modern forms: a ransomware attack and then the COVID-19 pandemic.

“At 3 a.m. one morning in October, I got a call from our IT manager that we had been hit with ransomware,” Wendy explains.

She explains recovery from the attack required all hands on deck, multiple external experts and months of work to protect traceability and keep product moving. The aftermath included layered backups, new server and email security, user training and an ongoing relationship with cybersecurity and insurance professionals.

Just months later, COVID-19 hit. With 90% to 95% of their business retail-focused, the Alsum team quickly formed a COVID-19 response group, redesigning workflows to keep employees safe and shelves stocked.

The sisters say one key result from COVID-19 was when another supplier faltered, the Alsums were ready to step up for a major retailer — turning crisis into opportunity.

5. Relationships as a Strategic Asset

Beyond capital and land, the panel underscores the value of relationships — with peers, competitors and buyers.

Edward, Payne and Rabou maintain a group text, often used when one of them is wrestling with a big decision.

“Have people in an industry that you can trust and communicate with,” Edward stresses. “There’s been days they’ve literally had to walk me off a ledge when I’m trying to figure out how to make a decision.”

In the potato and produce world, Heidi says, competitors often become collaborators when the chips are down.

“The nice thing about the potato industry and the produce industry in general that we’ve experienced is that it’s been very collaborative,” she explains.
Rabou adds he sometimes sells grain below top price to maintain long-term relationships and outlet security.

“Those relationships to me are more important than making the dollar in the moment,” he explains.

His broader warning to producers is to stop comparing your operation to your neighbors’.

“You really have to determine what works good for you as an individual, you as a couple, you as a business,” he stresses. “Stop paying attention to what everyone else is doing.”

The Bottom Line from Top Producers

Across all their stories, the panelists echoed a few core principles:

Know your numbers but also know your values.
Act in crisis — don’t let fear make the choice for you.
Be willing to pivot, even away from something profitable, if it no longer fits your life or strategy.
Invest in appreciating assets and in relationships, both of which can pay off long after the crisis has passed.

In short, risk in times of crisis isn’t just something to endure; handled intentionally, it can be the turning point that reshapes a farm for the better.

One Farmer's Idea to Avoid Yellowstone Drama When Transferring the Family Farm

Tue, 25 Nov 2025 14:30:54 GMT

At 8 cents a pound, pigs weren’t worth much when Todd Wiley formed Interstate Swine LLC with his dad in 1998. Nobody wanted weaned pigs. Facilities quickly became available as people left the pork industry. With a sincere desire to make a living raising pigs on his family’s farm, Wiley stepped out in faith. Nearly 30 years later, this multi-generational farming endeavor in eastern Iowa has survived some of the toughest times and some of the best times.

Maybe that’s why Wiley has taken a unique approach to bringing the third generation back to the farm.

“There’s no doubt that family is important to Todd,” says Pat McGonegle, CEO of the Iowa Pork Producers Association. “He puts family first, and the farm is a part of that discussion. He manages his family members that are part of that farm in a real professional way, but also with an eye towards the legacy that he and Denise want to leave on their farm.”

Would This Be Good For My Kids?

Growing up, Wiley’s parents talked about succession planning often with their three sons. The concept of planning for the generational transfer of the family farm came naturally to Wiley.

“When we started Interstate Swine, we needed to hire employees,” he says. “One of the things I was conscientious about was making sure the employment opportunity within our business would be conducive to our children filling those roles.”

From the beginning, Wiley instituted health insurance plans, matching IRA funds, paid time off, paid vacation, and other benefits that employees would typically look for when securing a job.

“I constantly asked myself if this would this be good for my kids someday?” he says.

Wiley and his wife, Denise, have four kids: Drew, a Kansas State University animal science graduate and former K-State Football defensive tackle; Isaac, an Iowa State University agribusiness graduate now employed with Ever.Ag; Emma, owner of Auntie Em’s - Event Florist and attended Des Moines Area Community College; and Joshua, a junior at Iowa State University in animal science.

In 2017-2018, the Wileys doubled their sow farm to create more opportunities for the children to have a place on the family farm.

“It was a fairly tedious process – not only from a business standpoint, but about what the next generation was going to do,” he says. “They were all too young back then, and there was no way I could ask them for any sort of commitment to our business. But I did ask a lot of professionals. I remember asking our accountant specifically, ‘In your experience, what is the likelihood of a farm family having the next generation be involved, providing you have a viable business?’”

The accountant’s response was, “It’s pretty high.”

“Denise and I knew we needed to have some economies of scale,” Wiley explains. “There’s not much point in succession planning, if there’s nothing to succeed to or succeed with. We were mindful of that when we moved forward. Now, we have room for additional people, not only for labor, but also in management where we can utilize their skills.”

No Yellowstone Drama Here

As a family, it is easy to recognize each other’s strengths as well as quirks, he points out. But he wanted a better way to evaluate his children’s strengths and weaknesses, as well as interests, on the farm.

“I remember when a successful family in eastern Iowa, with a number of businesses, built a feed mill and elevator,” Wiley shares. “The father of this family passed away unexpectedly. Come to find out, nobody in the family had any interest in this feed mill and elevator, so they end up selling it.”

This hit Wiley hard. What would his kids say about where their farm was investing capital? That sparked the construction of a succession planning instrument for the Wiley family.

(Lori Hays)

“The first page of the instrument (an Excel document) started two years ago with a list of 35 jobs that need to be done on our farm,” Wiley says. “Most of them are pig related, but we do crop farm some. It was pretty much everything I was doing in a spreadsheet.”

Each of their children (and one daughter in-law at the time) was asked to rate those 35 jobs from one to five under this scenario: It’s 2033 and Todd and Denise are serving in an advisory role only. You choose to be an active employee of the family businesses. Please answer by circling the corresponding number that best describes your interest in the listed activity.

“It was interesting to see who had interest in what, but it also told us pretty clearly where we needed to go in the future if we wanted our children involved in our business,” Wiley says. “Initially, I think they saw it as a fun activity, just another of Dad’s crazy ideas. But I learned a lot.”

This past summer, the family completed the exercise again.

“I needed to see if the kids were drifting in their interest,” he says. “In one case, there was significant movement in what one of our kids wanted to do. It surprised me to be truthful about it. In the other three cases, they held true to what they thought two years previous. But bear in mind, our youngest was a freshman in college two years ago and a lot can change in college.”

Wiley emphasizes that nobody is required to come back and be involved in the operation. He says there are a million ways to make a living out there and he wants his kids to pursue their dreams. In the version his family filled out in the summer of 2025, he added a second page with 45 statements.

“If you’re going to work with people in a business and a family in any organization, even if you’re not related, you need to have some idea of where they’re coming from,” Wiley says. “On the second page of statements, they were asked to rank their level of agreement with the statement.”

For example, one of the statements was: No matter what I may think of a family member’s job performance, I’ll always have their back publicly.

“If you’ve ever watched Yellowstone, that show creeped me out,” Wiley says. “When I saw the family dynamic portrayed, it made me uncomfortable. We can have our disagreements. But, as a family, you better have each other’s backs out in the community, especially in the business we’re in.”

Getting Out and Getting In

This instrument has been helpful for the Wileys in many ways as they prepare to transfer more of the farm to their children.

“It sheds light on areas where their belief system parallels ours,” he says. “We have a definite place of emphasis now. Our children have a pig feeding business called Fourth Gen Hogs LLC, where they’re each 20% owners, Denise is a 10% owner, and I’m a 10% owner. It has been a great exercise in giving them the responsibility of ownership.”

He says the timing mirrors the situation he was in when Interstate Swine was formed.

“They got in about a year ago when it was pretty doom and gloom. We went to the bank with this idea, and they’re like, ‘You want to do what?’”

He believes this business venture will be the vehicle for he and his wife to exit pig ownership as their children get into ownership.

“Uncle Sam would have his way with us if we sold out all at once,” Wiley says. “But if we can gradually exit individual barns or individual parts of our production flow and have them enter into it, that’s a fairly nice segue for us to get out and them to get in.”

Wiley shares more about his mini adventure raising rabbits, opportunities for talented young people back on the farm and the message he hopes pork producers hear right now and more on The PORK Podcast. You can watch it here on YouTube or listen anywhere podcasts are found.

Watch more episodes here.

Oikonomia on the Farm: Succession Planning is About More Than Wealth

Thu, 20 Nov 2025 14:57:20 GMT

Succession planning is often treated as a legal or financial exercise — a “simple” matter of wills, taxes and transfer dates. Yet for family-owned farms and agribusinesses, it’s something deeper: the deliberate handoff of a way of life.

The ancient Greeks had a word for this kind of management, oikonomia, from which we get the term economy. Understanding what they meant by it can reorient how families think about preparing the next generation.

In classical thought, oikonomia referred to the management of the oikos, the household or estate, but it was never only about efficiency or profit. The oikonomos, or household steward, was responsible for using resources wisely so the entire household could live well and endure long into the future.

Ancient philosophers viewed resources as abundant, not scarce, so economic action was judged not by the accumulation of wealth but by whether it enabled and served a praiseworthy end. Specifically, the flourishing of the family, the land and the community.

Perspective for the Present

That older vision aligns closely with what succession planning should be for agriculture. The task is not just to pass on land and assets, but to ensure the continuity of stewardship, the ethical responsibility to care for what has been entrusted.

From an oikonomia perspective, the senior generation’s goal is to prepare successors capable of managing abundance with restraint, gratitude and wisdom. This calls attention to the education of character. The next generation must learn more than production and finance; they must learn judgment, the ability to distinguish needs from wants and to act for the common good. Mentorship, gradual transfer of responsibility, and open discussion of values all form part of this ethical training.

Perhaps most importantly, oikonomia reminds us that a farm is both a business and a household. Financial plans that ignore family dynamics or the moral vision of the enterprise risk undermining the very legacy they seek to protect.

Succession planning works best when it integrates three elements at once: the technical (who owns and manages what), the relational (how the family communicates and cooperates) and the moral (why the farm exists and whom it serves).

In that light, passing the farm to the next generation becomes not just a transaction but an act of stewardship — a modern form of oikonomia. The question is no longer only how do we divide the assets but how do we preserve the household, the land and the purpose they represent for future generations?

Why Its Time For Farms To Rethink Sweat Equity

Tue, 04 Nov 2025 18:16:14 GMT

For generations, sweat equity wasn’t talked about. It was assumed. Work harder than anyone else, take home the same (or less) than the hired help, and trust that one day, the farm — or a good chunk of it — would be yours. Money was tight, and for many, it worked out just fine — until it didn’t.

The truth is, today’s dairies track the hours and contributions of employees and pay them accordingly. Why not do the same for family members? The old sweat equity model — where family members accept below-market wages in exchange for a promised future inheritance — brings as many headaches as it solves, especially when it comes to succession planning and family harmony.

A Double-Edged Machete
Sweat equity, in the dairy context, means logging long hours for less pay and banking on the idea that hard work will eventually translate to ownership or a larger share of the business at some point in the future. On paper, it looks good for cash flow by cutting down on wage expenses. There can be tax advantages for the farm and the worker because compensation is tied up in assets instead of regular income.

However, sweat equity is infamously hard to define and track. Few families keep records of hours worked, responsibilities taken on or the value of those hours. When the time comes to settle up the estate, emotions can run high and misunderstandings multiply. Non-farming siblings might feel cheated, while those who put in the sweat may feel undervalued. Resentment often flows freer than milk from a cow 85 days post-calving.

Another challenge is that most non-farming relatives are in the dark about what sweat equity arrangements exist — or what they’re worth. Estate planning becomes a minefield, with parents trying to assign value to decades of labor. In the end, what was supposed to ensure fairness can leave everyone feeling shortchanged.

The Need for Modern Solutions
It’s time to modernize. Dairies are sophisticated businesses, and it’s time to upgrade compensation models. Paying family members fair, market-based wages — now, not at some undetermined point in the future — creates clarity and goodwill. Transparent agreements, clear tracking of contributions and a focus on merit help ensure succession planning is less about guesswork and more about fairness.

Sweat equity had its place, but in today’s world, “work now, get paid later” is a risky bet. Risky for the junior generation and even riskier for family harmony. When family harmony goes, the family legacy probably isn’t far behind.

Modern dairies need compensation systems that are equitable, transparent and sustainable, for the business and the family. You already have this for your employees. Why not for those you love, work with, and are entrusting your legacy to?

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Plan for Now, Adjust Later: Create Your Estate Plan Before It's Too Late

Wed, 22 Oct 2025 17:05:38 GMT

Nobody wants to think about death, but it’s something Polly Dobbs, an estate planning and wealth transfer attorney with Dobbs Legal Group LLC, thinks about every day.

“When I was a new lawyer, I was so nervous to say dead or death,” Dobbs recalls. “I was in a meeting with a partner and his client once when I stumbled over something and said, ‘in the unfortunate event you should pass away.’ After that meeting, the partner yanked me out in the hallway and said, ‘Stop stuttering. Just say when you die. It’s not if, it’s when.’”

She’s been dealing in death ever since, but she says that perspective allows her to serve her clients better.

“What if you got hit by a bus tomorrow?” Dobbs asks. “You should have a plan in place that fits today’s circumstances. If your grandson is playing with John Deere toys in the sandbox, let’s not create a succession plan that hinges on that grandson coming back to farm. Let’s have a plan in place that fits right now, in case you die tomorrow. If you don’t die and you get to see how those grandkids turn out and which direction their lives take, you can adjust that plan.”

People often think they can figure out their estate plan later – when they are older, richer, sicker, free from debt and the list goes on.

“Too often, people don’t have a plan, and they end up dying before they’ve got it just how they want it,” Dobbs says. “Have something that fits for today and dust it off as needed.”

What Should Drive Decisions?

When it comes to estate planning, Dobbs says there is no cookie-cutter-approach.

“You can’t copy what your neighbor did,” she says. “It has to be customized for your family, your facts, your assets, your goals, your family members and your farm.”

She often challenges farmers with tough questions like should your off-farm kids get bought out?

“Should they get bought out of equipment, improvements, grain bins, shops, shed and all of the silver things that we build on top of gravel lots to use in production agriculture?” she asks. “Do you feel like your off-farm heirs are entitled to a share of these operating assets? If so, fine. If not, that’s OK, too.”

Part of what Dobbs does is give permission to people to treat their children differently and to define their children’s inheritance.

“It’s not necessarily one quick check after an auction after your funeral,” she points out. “It is absolutely fine to treat your children differently. I preach over and over again that fair does not mean equal. There is no law that says the columns for your children must tally to the penny and be exactly equal with the assets they receive at your death. You’re aiming for a fair balance, and you define what is fair.”

Ultimately, she says, it comes down to peace of mind when you lay your head on the pillow. Do you have a fair plan in place?

Talk Now, Don’t Wait

Communicating the estate plan during your lifetime is very important, but it’s often the step that farmers fail to complete. She says transparency helps avoid entitlement.

“When someone thinks they’re going to get a certain amount of the value of your assets, they’re already calculating it and counting on it,” she says. “After your death, if the plan is different, that’s when the entitlement rears its head.”

She emphasizes the details must be defined by the farmer.

“A lot of my clients would rather put their head down and have the plan unveiled after death,” Dobbs says. “I understand that’s challenging. But it’s far better to have transparency and throw everything out on the conference room table so you can shine a light on it and talk about it.”

In addition to getting all the family in the room, Dobbs believes there should be more than one adviser at the table at a time.

“This is how you get the best plan, and you will always have a better plan if your advisers speak to each other,” she adds. “There is this falsehood out there that you need to stop your lawyer from talking to your accountant because that means they’re both charging you at the same time. I promise it will always be cheaper in the end, and a better plan, if your advisers talk to each other.”

Touchy Subjects

One of the sensitive subjects many farmers are dealing with today is the issue of sweat equity and treating it like deferred compensation, she says.

“When we have a successor coming in, depending on how long that successor has been working side by side with the senior generation, they’ve earned something,” Dobbs says. “We’re not talking about giving them a handout. If we give them a discounted price, or we give them assets off the top as a part of the succession plan or part of the estate plan, that’s not a handout.”

Deferred compensation says that if a young person had gone to work in a factory right out of school, they would be earning and investing in a 401K or perhaps stock compensation. They probably would have health insurance and HSA accounts that most family farms just don’t have, she explains.

“When the senior generation is putting together their succession and estate plan, consider the benefits the successor gave up by not working off farm,” she says. “Having some sort of benefit, discounts, family-friendly terms in the succession plan and in the estate plan should be considered deferred compensation.”

Read More:
Tax Acts and Estate Plans: What You Need to Know About the Changes for 2026

Overcome the No. 1 Challenge in Passing Down Your Family Farm

Mon, 30 Jun 2025 18:41:37 GMT

Between now and 2048, about $124 trillion is expected to exchange hands from older to younger generations in the U.S., according to Cerulli Associates, a Boston-based market research firm.

For perspective, that dollar amount is approximately five times the size of the 2023 U.S. Gross Domestic Product (GDP), which totaled $27.72 trillion.

How will farmers fit into what many people are calling the “Great Wealth Exchange” over the next two decades? Much of it is specific to land, according to the American Farmland Trust (AFT). It predicts 300 million acres of U.S. agricultural land will change hands in the next 20 years.

Based on $5,000 an acre for farm ground, Paul Neiffer, the Farm CPA, estimates that would be a transfer of between $1.5 trillion and $2 trillion in land from older farmers to younger generations.

“If you throw in rangeland, that’s another trillion, so $3 to $4 trillion at most is where I think we’re at,” Neiffer says.

The Reason Succession Often Fails

A common issue is that while 69% of farmers plan to transfer their operation to a younger family member, only 23% have a plan , according to AgAmerica Lending LLC.

But the No. 1 issue that trips up people in the succession planning process is most people – farmers included – focus more on the mechanics involved in transferring assets than on keeping their family relationships intact.

That’s according to Amy Castoro, CEO and president of The Williams Group, a family coaching and consulting organization. Her firm does relationship planning to help family members make sure they’re still speaking to each other after the wealth transfers.

Many times, she says, the friction in the transfer of wealth has little to do with money and material goods and a whole lot more to do with whether the family members involved felt loved.

A Formula For Success

The Williams Group did a 20-year field study and from that developed a formula for how people need to focus their time and energy in the succession process.

The company recommends spending:
60% of your time on building family trust and developing good communication practices;

25% preparing your heirs to take over the operation, laying the business and fiscal groundwork for the farm to continue under their leadership;

10% of your time getting on the same page about your family’s values and having a family mission;

5% of your time on the estate planning mechanics, the nuts and bolts of how the assets will transfer.

In addition, The Williams Group advises that you work with your heirs to:

Strike a balance between control and collaboration.
Embrace the next generation’s perspectives.
Bolster intergenerational solidarity.
Embed high-trust behaviors.
Co-design standards for readiness.

Start The Plan Sooner, Not Later

If you want to see your farm succeed with the next generation of family members, make sure you have the right structure in place – and set it up sooner than later. Don’t put it off, Neiffer advises.

Once you have a plan in place, you have a tool you can modify to fit what your family and farm need over time.

“Having a plan in place can help alleviate stress, even if things change down the road,” Neiffer says. “Keep in mind that farming is a dynamic business and your plan needs to be, too.”

Your next read: Big Questions Remain For Next Gen Farmers

5 Options to Consider During Farmland Transitions

Thu, 12 Jun 2025 16:30:00 GMT

Transitions are hard. It doesn’t matter what the transition involves, the nature of moving from one thing to the next is complicated. Farmland may be one of the toughest, says Steve Bohr of Farm Financial Strategies in Lisbon, Iowa.

“Farmers often believe that what differentiates him or her is their ability to own the land,” Bohr explains. “And by God, you’re not taking it away from them. A lot of times, land ownership doesn’t transfer until death, and I’m OK with that. But we’ve got to drill down and figure out how that land is going to transition from one generation to the next.”

Over the years, he’s discovered there are three fundamental areas of concern in an estate and farm transition plan that each family should independently address — cost of administration, creditor protection, and transition plans for land and operating assets.

He shares five options to consider for the transition of land assets.

1. Give the land to the farmer.
The first option is to get the land transitioned to those who are farming it or have an affinity to own it, Bohr says. Each generation cannot afford to take a step back in equity and expect to compete in today’s marketplace.

“The clear problem with that is, how are we fair to the ones who aren’t interested in farming? Every family is different,” he says.

If your family is expecting to farm the same (or more) acres with a land base that has been divided across siblings, each generation will be in a weaker position to complete. How many times will your family have to pay for the same land? Which generation will eventually lose it due to no fault of their own (other than choosing to carry on the legacy)?

2. Divide the land equally.
An undivided ownership in real estate can cause great anxiety for the owners of the land who want to farm it or who want to continue to own it, he explains. There is a greater chance of peace if you divide the land, but also a greater chance it gets away from the family.

“Most people believe this is the answer,” Bohr says. “I don’t believe that, because the problem with dividing the land is that it’s a recipe for the land to get away from us. Whether it’s divorce, bankruptcy or poor planning.”

At some point in time, the more people involved, and the more independence those people have, the land’s going to get away from you. If it doesn’t, then it has to be divided again at the next generation. By the time you divide a farm two generations, the grandkids don’t have enough to be able to farm.

“We are dividing ourselves right out of the plat book,” Bohr says.

3. Deed land into a family trust.
Leaving the land in trust after death may be a wise option for families who cannot afford to get the land to one heir and who do not want to divide their land. There are solid reasons to leave the land in trust for management, including if one or more children have marital, money or addiction issues or if one or more children are independently wealthy.

Oftentimes, leaving land in trust gives a false sense of security that may be deferring the problem to the future.

“When we leave it in trust, we’re asking for big problems. Whenever that land comes out of trust, it can be very inflexible,” Bohr says.

4. Create a family land entity.
A land entity like a Limited Liability Company (LLC) or Family Limited Partnership (FLP) has become popular for a family where the first three options do not fit.

“I call this the boomerang plan because the rules in the operating agreement of the entity always bring the land back to the family,” he says.

Those entities will have rules, and within the entities, those rules will talk about lease options and purchase options at family pricing and terms, whatever that looks like. A vast majority of them are special use paid over a 30 -year contract so they can guarantee opportunity and affordability for family members.

5. Develop a hybrid plan.
There is not one plan that fits all families. That’s why a combination of multiple options sometimes works best for most families. A hybrid plan gives everybody an opportunity.

“Right now in succession planning, I think we have to give a huge amount of understanding to what will or won’t cash flow,” Bohr says. “What are the tax ramifications? What is the timing of the transition? And are we going to give an adequate opportunity to those who are going to be that next generation in our communities, paying taxes, going to churches, going to schools?”

Your Next Read: How an Iowa Family is Passing on the Farm from One Generation to the Next

Florida Siblings Carve Out Their Own Roles On The Dairy

Thu, 12 Jun 2025 11:57:23 GMT

Milking R Dairy in Okeechobee, Fla., stands as a testament to the harmony of tradition and innovation. With roots deeply embedded in agricultural legacy and a forward-thinking approach, the Rucks family is crafting a new chapter in the story of their enduring family business. At the helm of this transformative journey are Garrett and Lindsey Rucks, a brother and sister duo, who, supported by their family and modern advancements, are redefining what it means to be part of a multigenerational farm.

(Milking R Dairy, NEDAP)

Legacy in Motion
Garrett is intricately involved in the day-to-day operations of Milking R Dairy. Whether managing crop production, maintaining the farm or overseeing the beef cow operations passed down through generations, Garrett’s understanding of farm logistics is unparalleled. His passion for preserving and progressing the family legacy runs deep, having spent his formative years under the watchful eyes of his grandfather and father.

From a young age, Garrett was steeped in farm life, learning the ropes by working alongside his family.

“I knew I didn’t want to go to college and wanted to stay here and farm,” he reflects.

This practical education has paved the way for this 32-year-old to take on the general manager role, leading Milking R Dairy with dedication and vision.

“Family is really important to us,” he says. “Farming is part of who we are, and I want to keep that legacy going.”

Garrett grew up by his father’s side and reflecting back, he would not have had it any other way.

“My whole life I was outside, on a tractor or working with cows, you name it; anything I could do, I was doing,” he says. “I’m very fortunate as my dad gave me a lot of reins, and I could try different things. I was also very fortunate as my family was always working by my side.”

The older Garrett got and the longer he was involved in the operation, the more managerial role he would take on — eventually getting to the position he is in now. Milking R Dairy thrives as a cohesive team environment, supported by the unwavering dedication of its 24 employees, some of whom have been working with the Rucks family for decades.

Garrett maintains a strong bond with his team, understanding their shared goal is the dairy’s success.

“I’ve worked with them for years and some for decades, and because of that, there is a sense of friendship. They want to see our dairy succeed as much as we do,” he adds.

(Milking R Dairy, NEDAP)

Innovation with Tradition
Milking R Dairy’s recent innovations, such as the construction of a 54-cow rotary parlor and the use of smart technology such as Nedap sort gates and smart tag ear activity system in 2024, demonstrate their commitment to merging tradition with technology. These advancements have streamlined operations, allowing the family to focus more on what matters most: the health and well-being of their cattle.

One upgrade has been monitoring cows remotely.

“When I’m not here, I can look at the computer and see cow flow, milk weights and herd health,” Garrett says, reassuring how the employees are dedicated to caring for the cows.

He says it is nice to focus on the cows that need attention and not disrupt the entire barn, but that doesn’t take away the need for good cow sense.

“It’s great to incorporate technology into the picture, although good cow knowledge goes a long way,” he adds.

Heart of the Farm
Innovation has not only extended to technology; it has also extended to business diversification. The family’s venture into bottling their own milk and producing ice cream has provided additional financial security and fulfilled a dream long held by Garrett’s father, Sutton. The agritourism sector of the farm, born amid the COVID-19 pandemic, further showcases their adaptability, welcoming the public to experience farm life firsthand.

Much like her brother Garrett, Lindsey is no stranger to the rigorous demands of farm life. With her deep-rooted passion for both agriculture and communication, Lindsey spearheads the farm’s marketing and social media initiatives. Her efforts to share Milking R Dairy’s story with a broader audience have not only helped establish the farm’s brand but have enhanced public understanding of the dairy industry.

“Our family’s journey in building this brand has been deeply fulfilling,” she says. “By producing minimally processed milk, crafting premium ice cream and providing fresh beef, we’ve established a legacy that reflects our dedication to quality and family values. This endeavor stands as a tribute to our heritage and a foundation for future generations.”

(Pictured from left) Garrett, Kris, Sutton and Lindsey Rucks are continuing the legacy of Milking R Dairy through technology upgrades and diversified offerings.

(Milking R Dairy, NEDAP)

Future Plans
As the Rucks family looks forward, they aspire to one day have all of their herd’s milk featured under their own labels, reflecting their meticulous attention to quality and local production.

And, despite obstacles such as Florida’s scorching summers affecting production, Garrett remains optimistic.

“It’s a team environment and team success even on tough days,” he says.

Garrett does admit operations become extra challenging to dairy during June to October when weather conditions become hot and humid.

“The longevity of the heat stress takes a toll on the herd. Our cows acclimate well to the weather, but heat is still a big factor impacting production and reproduction,” he shares, adding that their conception rates drop 6% to 8% in the summertime.

Despite the challenges that face this family-run dairy, the next generation’s focus on fine-tuning operations and taking calculated risks is testament to the wisdom passed down from their father.

Garrett says he has learned a lot from the older generation and adds a lot of those moments happened while working. And for many, like this young Florida dairy farmer, the love of dairying goes beyond just a profession.

“Like most dairy farmers, I love being outside and working alongside the family and the constant motion of all that needs to be done. Dairying gets in your blood,” he says, underscoring how the demands of the farm are relentless, requiring a deep passion and commitment that is often inherited.

Garrett goes on to reflect upon some of the valuable advice he’s received.

“My father always reminded me to be persistent. That it’s good to take risks, but you better know when to put your foot on the gas and when to hit the brakes,” he says.

One of the cornerstones of this family’s success is their unity and mutual respect. The siblings say despite the inevitable stress of managing a farm at this level, they never have had a big blow-up argument.

“We know everyone’s hot buttons, yet we are all on the same page,” Garrett and Lindsey say. “We have the same goals in mind, and at the end of the day, we are respectful to one another.”

This respectful dynamic within the family not only ensures a harmonious work environment but also sets a strong example of leadership and cooperation. It reinforces the belief that while individual roles may vary, the collective goal remains constant.

“Watching our children grow up immersed in our family’s traditions and then choosing to continue them fills us with immense pride,” Sutton and his wife, Kris, share. “Their dedication to carrying our legacy is the most rewarding achievement we could hope for.”

The sibling duo expresses true gratitude for their journey and the opportunity provided by their forefathers. Continuing this legacy, they are proud of what they all have built, knowing their parents are just as proud, recalling the opportunities passed down through generations. The farm stands as a testament to their shared vision — a living legacy of passion in dairying.

(Milking R Dairy, NEDAP)

It's Time To Lead: Strong Succession Won't Happen By Accident

Wed, 11 Jun 2025 18:34:46 GMT

Succession planning isn’t just a checklist item — it’s a defining leadership moment. As a farm or ranch owner, it’s time to stop waiting for the “right moment” and start leading with purpose. You’re not just passing on assets; you’re shaping the future of your operation. That means stepping into the role of leader with clarity, courage and commitment.

First, take a hard look at what kind of leader your farm needs. Are you focused on daily operations or vision and growth? Are you modeling strong financial discipline and decision-making? Are you addressing conflicts head-on and keeping your family aligned? Leadership requires more than technical skill; it demands the courage to tackle tough conversations, whether with partners, successors or family members. Great leaders don’t shy away from discomfort; they lean into it with the goal of building stronger relationships and a more resilient operation.

Communication is foundational. If your team doesn’t know what’s happening, how can they help move forward? Hold regular family meetings, define decision-making roles and ensure everyone understands their responsibilities. Avoiding conflict only leads to confusion. Structured, transparent communication builds trust and keeps succession planning on track. Communication is also how you build buy-in from the people who will carry your operation forward.

Leadership Isn’t Handed Over

Next, you must actively develop your future leaders. Don’t wait until you’re ready to retire to begin mentoring. Give your successors meaningful responsibilities now. Let them learn by managing projects, participating in financial discussions and handling day-to-day operations. Leadership isn’t handed over — it’s earned through real-world experience and demonstrated commitment. Every season serves as an opportunity to develop those skills and test readiness.

Set clear standards for advancement. Define what success looks like: required experience, education and financial knowledge. Make sure successors understand what it takes to lead and hold those leaders accountable. If someone isn’t ready or is unwilling to step up, be honest. Your farm’s legacy deserves strong, prepared leadership.

Succession planning is hard. Many families stall out due to fear, conflict or lack of clarity. But real leaders don’t quit when times get tough, they face challenges head on. If your planning has gone off track, reset. Re-engage your family, bring in outside support if necessary and commit to consistent action.

The future of your farm depends on your leadership today. Will you linger in uncertainty, or will you lead with confidence? Strong succession isn’t going to happen by accident. It’s driven by leaders who are willing to plan boldly, act decisively and invest in their next generation. Your family and your operation are counting on you. Be the leader they need.

Your Next Read — Quiet Crisis, Unfolding Rapidly: Big Questions Remain For Next Gen Farmers

Steering Farm Succession Planning: A Roadmap for the Next Generation

Tue, 10 Jun 2025 15:05:00 GMT

Succession planning is an essential, yet often daunting, task for farm owners. The idea of transitioning a family farm to the next generation involves careful planning, strategic financial practices and, most importantly, open communication. Independent dairy financial consultant, Gary Sipiorski, offers invaluable insights into effective succession planning for farms. Here’s a comprehensive guide based on his advice.

Recognizing the Signs of Interest
One of the key indicators that it’s time to start thinking about succession is when children on the farm begin to show genuine interest in its operations. Participation in 4-H projects, eagerness to help at young ages and an overall enthusiasm for farm life can signal a potential future for the next generation on the family farm.

Educating the Future Generation
As children begin to engage with the farm, it is crucial to use teachable moments to explain the intricacies of farming. Demonstrating the importance of detail-oriented work is essential. Moreover, when they are old enough to grasp financial concepts, share the farm’s financial records with them. Introduce them to the checkbook, monthly cash inflows and outflows and annual balance sheets. Encouraging them to manage their own personal accounts fosters financial literacy and responsibility.

The Importance of Positive Communication
Continuous, positive communication among all family members involved is fundamental to the success of succession planning. Open dialogues help manage expectations and ensure everyone is on the same page.

Engaging with Professionals
Around the age of 55, it’s time for the parents to engage professionals like lenders, accountants, consultants and attorneys to discuss farm transfer strategies. These discussions pave the way for viable transfer plans starting by age 60, leading to a potential 10-year transition period.

“There are a lot of assets on the farm today,” he says. “Gifting will be part of the picture in the future.”

Ensuring Financial Viability
It is critical to assess the farm’s financial capacity to support both generations before proceeding. This involves running detailed cash flow analyses to ensure sustainability.

Documenting and Structuring the Transition
Accountants and attorneys play crucial roles in documenting the various aspects of the transition. Clarity in the process helps avoid misunderstandings and disputes. Initial steps may involve forming separate LLCs for livestock and transitioning income and expenses to the new generation. The first generation can also rent machinery and land to the newcomers as part of this initial transition phase.

Implementing a Probation Period
Once signed documents are completed, a one-year probation period is advised. This allows all parties to assess whether the chemistry between generations translates into successful collaboration.

Long-term Transfer Strategies
Assets can eventually be transferred through gifting or loans, forming the backbone of a successful, structured succession that benefits all parties involved.

Farm succession planning might be complex, but by following these steps and maintaining open, positive communication throughout, families can ensure a smooth and successful transition to the next generation.

BREAKING: USDA Secretary Brooke Rollins and Sen. Roger Marshall to Join Farmers At Top Producer Summit

Sun, 16 Feb 2025 21:24:21 GMT

Secretary of Agriculture Brooke Rollins and Sen. Roger Marshall of Kansas will speak Tuesday morning at this week’s Top Producer Summit in Kansas City. The event is among the secretary’s first public appearances since being confirmed Feb. 13 . The fireside chat will cover key topics driving the future of agriculture.

A one-day pass to the event is available to give the agriculture industry a chance to hear Secretary Rollins share her vision for U.S. agriculture. Advanced registration is required due to security protocols. Register now with discount code ONEDAY to receive the special rate.

Secretary Rollins, originally from Glen Rose, Texas, serves as the 33rd Secretary of Agriculture. Most recently, she was founder, president and CEO of the America First Policy Institute. During President Donald Trump’s first administration, she was the director of the Domestic Policy Council and assistant to the President for Strategic Initiatives in the White House. She also previously served as director of the Office of American Innovation.

Sen. Marshall is a physician and U.S. Senator for Kansas. As a fifth-generation farmer from Butler County, Sen. Marshall became the first in his family to attend college. In the Senate, he serves on the Committee on Agriculture, Nutrition, and Forestry. He is the chairman of the Subcommittee on Conservation, Climate, Forestry, and Natural Resources and a member of the Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research.

Tickets are still available to attend the entire Top Producer Summit , which is agriculture’s premier educational and networking event for forward-thinking farmers and ranchers. The event will bring producers of nearly a dozen commodities together at the Loews Kansas City Hotel to share business opportunities and ideas for taking their operations to the next level.

In addition to the fireside chat with Secretary Rollins and Sen. Marshall, the agenda includes:

The Future of Farming with Byron Reese, futurist, technologist and entrepreneur
Conquer Decision Paralysis with Rena Striegel, Transition Point Business Advisors
How Income Taxes May Change Due To The Election with CPA Paul Neiffer
Land Diversification: What to Know Before Exploring Renewable Energy and Conservation Opportunities with Quint Shambaugh, Pinion
What’s Ahead for Farm Input Pricing with Sam Taylor, Rabo AgriFinance
What to Watch With the Weather in 2025 with Eric Snodgrass, Principal Atmospheric Scientist, Conduit Ag
Global Fertilizer Market Overview: What It Means At Your Farm Gate with Josh Linville, StoneX

Some of the nation’s most outstanding farm operations will be recognized, including winners of the 2025 Top Producer of the Year award , the 2025 Women in Ag award and the 2025 Next Gen award .

How To Budget For Your Farm's Transition

Tue, 28 Jan 2025 18:27:03 GMT

In 2023, I said the most important thing for your farm business is build your transition plan. Recently, we’ve focused on knowing your numbers, and now it’s time for cost of living and budgeting for retirement.

When I work on transition planning with family farms and businesses, I often start by asking whether or not the senior or junior partners have met with a certified financial planner. Usually, but not always, the answer is no. But almost every time, the senior partner needs a clearer picture of their needs in the next chapter of transition or retirement. They think they will be OK, but until it is put on paper, there is still this massive fear about the unknown. Thankfully, it’s easy to navigate.

Anticipate Your Lifestyle
The first step is understanding what your cost of living looks like in retirement. Yes, this means budgeting and anticipating expenses.

I put together a one-page, farm-centric worksheet so you can easily calculate your budgetary outlook. This includes expenses such as healthcare, vacation, groceries, basic needs, and even that new fishing boat you want to buy. I don’t care what your budget is, but you should. You need to have an excellent idea of what that number is. In fact, it is one of the most respectful things you can take the time to calculate for you, your spouse and your transitioning partner.

Put It On Paper
The next and final step (I’m a simple man) is mapping out the long-term business needs and other specifics for your long-term income and expenses. For most of you, the income will include farming for a while, including grain sales, equipment sales and then cash rent and other income such as social security, investments and diversified income from other sources or businesses you work in. The expenses include land, equipment and housing notes, primarily.

The important part is physically putting the numbers in to see what the next 10, 20 and 30 years look like on paper. The worksheet calculates the income and expenses you input and allows you to select your ‘crystal ball’ inflation rate, investment return and anticipated tax implications.

I want peace of mind in your retirement and transition planning. I want you to know where you stand and what your needs are. I want you to feel comfortable with the hardest thing you have to do once in your life. And I’d like your transitioning partner, whether family or not, to know your needs and expectations as you navigate these next steps.

Do yourself a favor and take an hour or two to put on paper what you might have been putting off for too long or have yet to take the time to think about.

Shay Foulk
shay@agviewsolutions.com

Four Key Insights from the 2024 Farm Journal State of the Dairy Industry Report

Fri, 13 Dec 2024 15:27:13 GMT

The dairy industry is witnessing a dynamic transformation, and it shows no signs of slowing down. In an era where adaptation and forward-thinking are crucial, understanding these shifts helps stakeholders stay ahead of the curve. A comprehensive survey conducted among U.S. dairy producers’ sheds light on the emerging trends and future investments shaping the industry. The 2024 Farm Journal State of the Dairy Industry Report unveils four critical takeaways that provide valuable insights into the evolving landscape.

Embracing a Growth Mindset
Despite a myriad of challenges, the majority of dairy producers are maintaining an optimistic outlook. The survey reveals that over two-thirds of respondents have experienced profitability over the past five years. In addition, more than half of the producers are fostering a growth mindset, with ambitions to expand in some capacity within the next five years. This expansion manifests in diverse ways—approximately one-third of respondents intend to increase cow numbers or establish new sites, whereas others are exploring diversification of on-farm revenue streams and improving facilities to enhance cow comfort and productivity.

Diversifying with Alternative Profit Lines
Stabilizing finances is a priority for many dairies, with an increasing number of producers exploring alternative profit sources. The potential for additional income streams beyond traditional milk production is becoming increasingly apparent. From on-farm processing and agritourism to the promising beef-on-dairy trend, opportunities for alternative income are manifold. Notably, only 20% of respondents are operating solely as dairy businesses. The beef-on-dairy approach, in particular, emerges as a lucrative avenue for many producers, with nearly half selling their crossbred calves shortly after birth or retaining them for a longer period to maximize returns.

Strengthening Processor-Producer Relationships
Approximately half of the dairy operators surveyed have expressed concerns over the robustness of their relationships with processors and the future stability of milk markets. However, a silver lining exists: 70% see potential in dairy innovation and processing as a pathway to future opportunities. Despite the current hesitation, most operators do not consider vertical integration a feasible option for achieving market stability at this stage.

Addressing the Succession Challenge
One of the industry’s notable challenges is the transfer of operations from one generation to the next. A stark 46% of respondents indicate the absence of a clear succession plan or are unsure of their operation’s plans. Regardless of herd size, the inclusion of family members or partners in dairy operations over the next five years ranks high on the agenda for many. Even the most efficient and profitable herds recognize the necessity of a seamless transition plan to ensure sustained success.

Looking Ahead: Innovation and Growth
The year 2024 has been a wild ride, marked by fluctuating prices that pushed producers to seek stability actively. As the global population is projected to be near 10 billion by 2050, efficient production methods are imperative. Fortunately, U.S. dairy producers show remarkable resilience and a fearless attitude towards embracing innovation, productivity, and sheer determination.

The insights from the 2024 Farm Journal State of the Dairy Industry Report highlight a sector poised for growth, adaptability and new opportunities. By fostering strong relationships, innovating profit streams, and securing generational continuity, the dairy industry stands on the cusp of a promising future. For full access to the report: dairyherd.com/state-dairy-industry

How To Leverage The 0% Tax Bracket

Wed, 27 Nov 2024 16:53:05 GMT

There are many situations where farmers can sell assets they have held for over a year and owe no federal income taxes on the gain.

Capital gains that are taxed in the old 15% tax bracket are actually taxed at a zero rate. For 2025, single taxpayers hit the top of this tax bracket at $48,350 of taxable income. Married couples top out at twice that amount, or $96,700.

Remember, these taxable income numbers are after itemized deductions or your standard deduction. The standard deduction for 2025 increases to $30,000 for a married couple, which means a farm couple could have long-term capital gains of $126,700 and owe no federal income tax (assuming they have no other income).

This can have great planning opportunities.

First, if a farmer has a C corporation and a personal income that is low for the current year, then paying a dividend from the corporation makes sense because the divided will be tax free. Plus, the corporation does not even need to pay out any cash. It can instead elect to distribute a “deemed” dividend, which is simply a paper entry to debit dividend and credit paid in capital. This also has the result of increasing the tax basis in the corporate stock, which can be helpful if the corporation is liquidated or converts into an S corporation.

Capital Gains Planning Example
Jim and Sara estimate their taxable income for the year will be about $50,000. Their corporation issues a deemed dividend to them of $75,000 because they would like to keep the cash in the corporation for operating purposes. They can also elect to pay a cash dividend to themselves and then loan the proceeds back to the corporation. This income added to their personal return will be taxed at zero for federal income tax purposes. They will pay state income if their state has such taxes.

Another option involves selling stock investments at a gain if you know the gain will be tax-free. There is a rule against repurchasing stocks within 30 days if you have sold the stock at a loss, but in this case, you are actually locking in long-term capital gains to be taxed at zero. The worst that can happen is you might be out a little bit of a bid/ask spread on repurchasing the stock if you use an online no-commission company.

Selling Assets Example
Andy and Gretchen estimate their taxable income at zero. They were early investors in Tesla and elect to sell Tesla stock that generates a long-term capital gain of about $125,000. They decide to not repurchase Tesla but will elect to use it as working capital for their farm operation. This gain will be tax-free at the federal level.

The bottom line as you do your tax planning at year-end is to review any assets you have held for at least a year to determine if your taxable income remains in the 15% tax bracket. If so, you might want to consider selling all or part of that asset to lock in tax-free money (at least at the federal level). Or, if you have a C corporation, always review that each year to determine how much of a tax-free dividend you can pay out.

Promoting the Next Generation: Going from Farmer to CEO

Mon, 04 Nov 2024 14:28:26 GMT

In the world of dairy farming, formal titles are often overlooked. Ask a dairy farmer about their job title, and they’re likely to respond simply, “I’m a dairy farmer.” For many, especially those returning to family operations, titles are not assigned. Instead, as Wesley Tucker, a Field Specialist in Agricultural Business with the University of Missouri Extension, puts it, they start their farming life as soon as they can reach the clutch on a tractor or carry a feed bucket. Initially, they perform chores, essentially becoming grunts. As they grow older, they evolve into what Tucker calls “grunt level two”—taking on substantial responsibilities but not stepping into management until circumstances force them to assume a leadership role.

“The reality is, someone’s got to die before a promotion exists,” Tucker remarks, highlighting a common dilemma where even farmers in their mid-60s are not necessarily the ones making the final decisions on the farm. This slow-moving upward mobility underlines the critical need for effective succession planning in farming operations.

Succession Planning vs. Estate Planning
“Succession planning is a process,” Tucker emphasizes, contrasting it with estate planning, which he describes as an event. Tucker uses an analogy of a bucket to explain estate planning: it involves placing all assets—land, cows, facilities, equipment, tractors, planters—into a metaphorical bucket that stays full until the owner’s death, at which point it is upended, and everything changes hands.

Succession planning, conversely, is thoughtfully systematic. It begins with the same bucket but involves slowly transitioning some items to the next generation, allowing them to inherit responsibilities and ownership gradually without necessitating a death in the family. Starting with basic management duties, over time, the younger generation increasingly assumes control and ownership, easing both parties through the shift in roles and reducing disruptions.

Roadmap for Succession Planning

Gain Outside Experience
Building a successful farm business for future generations involves encouraging the younger members to gain experience elsewhere first. Tucker asserts, “I want every child to leave, gain additional skills, and bring those skills back to the operation.” He encourages young farmers to go to college, trade school, or work elsewhere to develop these skills and gain varied work experiences, including learning from both good and bad bosses.

Trial Work Period
Introducing a trial work period of one to five years is another critical strategy. This period allows families to gauge whether blending personal and professional relationships will work in the long term. Honest evaluations at the end of this period can help in making informed decisions about future roles within the family business.

Begin Management and Ownership in the Family Operation

Upon successfully completing the trial period, younger family members should be given ownership of specific aspects of the operation. This phase includes managing a segment of the farm to gain practical experience. Tucker emphasizes the importance of allowing them to earn or buy their way into these responsibilities, even if it requires innovative compensation plans.

Advance management ownership
At this advanced stage, transitioning control of financial management is essential. This includes holding relevant meetings and understanding the farm’s financial nuances. Control over the checkbook is often a significant milestone and a substantial step towards full ownership.

“I am really on a mission to help producers understand that the most important transition they will make is not from CEO to casket, but from CEO to that of an advisor or mentor to the next generation,” Tucker shares.

From Leader to Mentor
The ultimate goal for Tucker is for farm owners to transition from primary decision-makers to advisory roles. He believes that the sustainability and growth of family farms rely heavily on this transition.

“The key to a successful farm business that makes it to the third, fourth and fifth generation is I have to learn that I have to go from being the star quarterback calling all the shots to being that of a coach or a mentor to the next generation.”

Your Next Read:

Passing the Torch from One Generation to the Next at Steinhurst Dairy

Thu, 26 Sep 2024 21:40:08 GMT

The speech “So God Made a Farmer,” given by Paul Harvey in 1978 to the National FFA Organization, tugs at every farmer’s heart. After all, it is both admirable and an honor when a child wants to be just like their parents when they grow up. Ohio dairy farmers Kurt and Robin Steiner can attest to their brimming pride when it was announced over the loudspeaker on senior football night that their oldest son, Christian, would take over the family farm after he graduated college.

Like many farm kids, Christian, along with siblings, Nicole and Zach, were taught the values of hard work, commitment and sacrifice on their family farm, Steinhurst Dairy, in Creston. Ohio.

When they look across the landscape of their family farm, Christian and his siblings see bountiful blessings.

“You see the animals when they’re born, raised all the way up,” Christian says. “You see God’s creation every day you work outside, and you work with your family.”

Est. 1959

The importance of family runs deep for Christian, who represents the eighth generation of dairy farmers in Wayne County. His grandfather, great-grandfather and great uncles helped established Steinhurst Dairy on their current location in 1959. His father, Kurt, describes his childhood farm as a typical rural Midwestern dairy.

After graduating from Ohio State in 1988, Kurt decided to head west to California to take a job with Cargill. He worked there for two years before landing another job with a big chemical company, but deep down, Kurt knew Ohio was home. He returned to his family dairy in 1994. At the time, his family was milking 140 cows in a double-6 herringbone parlor.

Kurt came back with a team player attitude and knew he needed to be an asset to his father and his uncle, John.

“I came back with the mindset I needed to shut up and listen for a couple of years,” he says.

Slowly, the Steiner family started to expand their dairy that now sits at 600 milking cows and 1,100 acres of cropland.

Despite the hustle and bustle of farming, the Steiner’s took time to pause in 2002 to talk about succession planning and what it would take to bring Kurt and his younger brother, Eric, into the operation as partners. With the help of a family attorney, the Steiner’s put together an extensive succession plan that addressed death, buyout of partners, how long the younger generation would have to work before coming into the farm as a partner and so much more for their family dairy. This conversation is vital for any dairy operation, but the Steiner’s would realize just how beneficial it would be for them in the coming years.

Handling Grief

As if 2009 wasn’t hard enough with a lackluster dairy economy, life suddenly came to a halt for the Steiner family on Super Bowl Sunday afternoon when Kurt’s father passed away from a heart attack.

Crediting solid management, where every partner pulled their weight, and a life insurance policy the farm had on their father, the dairy was able to continue without additional headaches.

“Our dairy didn’t miss a beat as far as keeping things moving forward,” Kurt says. “You don’t plan for death, but it certainly can happen quickly.”

After their father’s death, Kurt and Eric became 54% owners and their uncle John, a 46% owner, which was outlined in the succession plan.

In 2016, John had a stroke. He was sidelined for a year, only to return for a few months before undergoing a heart valve replacement. The surgery unfortunately never allowed him to go back to work on the farm. However, his leadership continues to be appreciated by the partners today.

Just, two months ago, at the age of 52, Eric went in for prostate cancer surgery, returned home, went into cardiac arrest and passed away. Kurt recalls his last words to Eric before his surgery: “I love you. Don’t worry about coming back. We will take care of it.”

Although Kurt was referring to taking care of the dairy while his brother recovers, a life insurance policy helped take care of the farm. Kurt notes none of his business partners walked off the dairy like everyone had envisioned.

“You’re not going to be here forever, so you better have it together,” he adds.

Succession Planning Advice

Kurt readily admits his farm doesn’t have it all figured out when it comes to succession planning. He wholeheartedly believes the key ingredient is communication among the partners during the long process.

“If there’s no communication, it is never going to work,” he says.

Appreciating the younger generation’s drive and passion is something Kurt admires.

“Truthfully, I don’t think there is a greater joy than watching your kids want to take over what you’ve established,” he adds.

After graduating from Ohio State University – ATI in 2018 with a degree in dairy science, Christian oversees the calf and heifer program as well as fresh cow protocols for the farm.

According to Kurt, the farm’s culture also plays a part in succession planning because the next generation isn’t going to operate and run the family business the same hours and the same way as the previous. He believes establishing work-life balance illustrates to the younger generation they too can achieve the very same balance.

“When a kid sees dad was able to attend activities and come inside for supper, this all sets the stage for what’s next,” he notes. “If the old man is dragging down the attitude of everybody and never taking a break, why would the younger generation want to come back to work in an environment like that?”

It’s a blessing, Kurt adds, that Robin came from dairy roots.

“She understood it all from day one,” he notes. “Sometimes the spouses who are not from this kind of background watch their friends’ spouse join in on all the fun things over the weekend and if you’re spouse isn’t prepared for that, it can be a rough adjustment.”

Crediting a solid foundation built on faith and family, the Steiner’s have been able to work together on the family farm.

“If you can foster a positive culture in your operation, where members want to be together, then you realize this life is worthwhile is key,” Kurt adds.

Every quarter, the Steiner family gathers for management meetings where no finger pointing is allowed.

“Everyone is expected to come with ideas.”

Understanding it is easy to be pulled into different directions and put off conversations for another day, Kurt highly recommends not postponing transition planning for tomorrow.

“It could simply be too late,” he adds.

The one question Kurt says needs to be agreed on is the end objective for the farm.

“What is the future goal of the farm?” he questions. “If you figure that out, it makes the whole succession planning a lot easier because if everyone wants it to continue to the next generation, then you just have to figure out how to execute it.”

The key component is communication and defining expectations for all members, including non-farming family members.

“Have those uncomfortable conversations,” Robin says.

Those conversations the Steiner’s executed early on, along with open communication, hard work and strong values have allowed Steinhurst Dairy to pass the torch from one generation to the next despite a string of grief and mountains of heartache.

Generation to Generation: Essential Advice from Producers on Bringing Back the Next Generation

Mon, 05 Aug 2024 14:34:46 GMT

In the past, passing down a farm from one generation to the next often happened without much conversation. It was a silent expectation, with many farms simply expanding by adding lean-tos or another barn, along with more milk cows to support the growing family. However, today the formula requires robust conversation and strategic planning to financially integrate another family member into the business. Two farmers from opposite ends of the country share their stories of succession and offer advice to the next generation of producers.

From Potatoes to Dairy
From an early age, a deep love of agriculture was sparked by machinery intrigued Paxton Robinson, a dairy farmer from Oakley, Idaho.

“I’ve always felt like if you had a terrible day, you could still find something that went right living and working on a farm,” Paxton, who represents the sixth generation of farmers and second generation of dairy in his family, says. More than two decades ago, the Robinson family made the life-changing decision to build a dairy. This decision was significantly influenced by the interest and passion shown by two of their sons, Nick and Paxton, in returning to the family farm. The shift from a potato-centric operation to dairy farming didn’t happen overnight; it was a gradual transition aimed at strategically utilizing their acres to grow feed for their cows.

“As we were phasing out, we were growing 1,000 acres of potatoes,” Paxton explains. “You cannot buy feed in our area, or it comes at an extreme cost as we are competing with so many other industries—potato and sugar beets especially, and some very large dairies,” he says.

Acme Dairy in Idaho

(Maggie Malson)

Today, the Robinson’s entire 5,000-acre crop production now serves to feed their herd of approximately 6,000 milk cows, which extends to 11,000 when factoring in young stock and dry cows.

Transition and Challenges
The family’s transition from potato farming to dairy farming came primarily out of necessity. As agricultural markets fluctuated, the Robinsons saw an opportunity to adapt and diversify their operations. Growing feed for their cows on their land allowed them to control costs and ensure the quality of the feed, which is crucial in maintaining a healthy herd.

“Competing with other major agriculture sectors for feed can be incredibly costly and hard to secure,” Paxton explains, noting that growing their own feed was a more sustainable and cost-effective solution, aligning with their long-term vision for their farm.

Today, the Robinson’s dairy is completely integrated, as the family co-owns High Desert Milk, a processing plant, with three other dairy producers. Built in 2008, this plant processes milk into powdered milk, butter, and recently, cream cheese.

While Paxton knew early on that farming was what he wanted to do, his parents encouraged him to further his education and after graduating from Utah State with an ag business degree he came back to the dairy. Today, he owns and operates the dairy with his older brother, Nick, and their father, Randy. Paxton manages the farm, employees, and equipment, while Nick focuses on the milking herd and feed procurement. This division of labor highlights the significance of both practical and operational knowledge to ensure the farm functions optimally.

“In the last 24 years, we’ve grown from milking 1,500-plus cows to 6,000 head,” he shares, noting the fast-paced adoption to growth.

No Sugarcoating
Paxton says he loves going home knowing that he got a lot done and can see the fruits of his labor. Although, he won’t sugarcoat that owning and operating a dairy isn’t for the faint of hearts.

“You have to be progressive and be super motivated to really make it,” he says, sharing that it is hard to teach motivation. “You must be born with a desire to be successful. A lot of these younger generations come back thinking they are going to be the boss. That is not really how it goes. They need to come back and start from the bottom and work their way to the top. Truthfully, it is hard enough to find good employees, I would say it is even harder to find people in the industry that have kids that want to come back and are truly willing to work hard.”

Paxton says that this especially holds true in larger operations, and it is hard to find someone who is willing to get their hands dirty.

“They must be able to get their boots dirty,” he says. “If you want to be respected by the employees, you must be willing to work alongside them.”

Nick came back to the family operation right after college to run the newly built dairy. He had experience working in construction. There are also two other brothers that did not have an interest in the family business, and they went and did other things.

“For us, to transition the dairy from my father to me and Nick was kind of easy because we had interest from the get-go,” Paxton says, sharing that both he and Nick have children and so the conversation for the next generation to come back will include the same motto: get some kind of education or training and work for someone else first and the same opportunity to work on the family farm can be there.

“My brother’s oldest boy is 21 and this summer he is learning manual labor,” Paxton shares. “This way he can make a conscientious decision about coming back to the operation. We are not going to raise lazy kids. We already have enough issues; we don’t need to entice laziness.”

Working for someone else first is essential, Paxton says, even if it’s just a summer internship.

“To be a good boss you have to have been bossed,” he says. “You have to be able to take orders and to be criticized so that you’ll know how to be in that role someday.”

Paxton doesn’t sugarcoat the difficulty of being a dairy farmer – and that message is clearly communicated to the next generation.

“I want the next generation to know that a lot of days can be mentally hard,” he says. “And, the reason you come back isn’t because ‘it’s the easy route,’ it’s because you have to really have a passion for what you do.”

Reflecting on Generational Opportunities
Head east, and you’ll find Pennsylvania dairy farmer, Luke Brubaker, the 2014 Top Producer award winner who works alongside two of his sons and one grandson. Brubaker shares that he and his family have been blessed with opportunities and says their success is not completely built off of good fortune, as they have faced many challenges. This includes a barn fire that completely destroyed their 1,200-head hog unit in 1999. Although, this setback forced Brubaker and his sons to focus on the dairy and make it a true profit center.

The Mt. Joy, Pa., farmer shares their succession plan early on wasn’t the most efficient. He recalls adding lean-tos to his barn and making room for additions to accommodate additional cattle.

“I didn’t’ realize it at the time, but I was actually becoming more inefficient. We were at a point where we couldn’t keep doing what we were doing; we needed to stop or grow and modernize,” the seasoned farmer admits.

The Modern Brubaker Operation
Fast forwarded to today, and the Brubaker family’s dairy operation is a modern sight. The family now milks 1,400 head of cattle, farms thousand acres plus, along with two poultry barns which is a testament to their willingness to embrace change and innovation. Their journey to this point stemmed from their ability to continually evolve to meet the challenges of modern agriculture while seizing opportunities for growth.

Brubaker family’s dairy

(Brubaker Farm)

Luke Brubaker’s smile widens when he talks about his sons, Mike and Tony, who came back to the family’s Pennsylvania dairy operation when they finished college in the mid-90’s. Despite both having promising careers ahead of them, both chose to return to their roots and continue the farming legacy. With open minds and hearts, their decision ushered in a new era on the family farm.

Tony says his parents embraced change and brought a very positive, can-do attitude to the farm.

“Even if it meant leveraging their equity to expand our future,” Tony explains. “They were smart risk takers, as dad was fairly aggressive on running and growing land base.”

This decision to carry on the family legacy exemplifies the family’s values of allowing each member to find their path while ensuring they are well-prepared for the responsibilities ahead.

The farm business transition didn’t happen overnight, but a lot of open communication unfolded and in 2014, they changed their business structure to an LLC and generated a flexible business model that not only allowed Tony and Mike to become owners, but kept an open mind for the next generation, too.

“Really, estate plan and transition plan need to work simultaneously,” Tony says.

Listening to the Younger Generation
Soon after the boys came back, Brubaker listened to his sons’ ambition to double their herd size to 400 head. The herd quickly grew, and the family purchased a neighboring dairy farm a decade ago and built a second milking parlor to accommodate for the growth.

Brubaker says transferring the farm to his sons was the best thing he could have done.

“They took to it right away,” he says. “They followed our family’s passion for farming.”

Although before the transfer of ownership and when his sons decided they wanted to come back and work on the farm, Brubaker emphasized the importance of ensuring it was the right move for them.

“So, between college summers, I told them if they were going to come back to the farm, then they had to do everything from breeding the cows to tractor work to cow management to feeding cows,” he says. “They needed to know what they were getting into. And, they have been such an asset to the farm.”

In 2020, Brubaker’s grandson, Josh graduated from Penn State and bought into the family farm as a 20% co-owner. Brubaker couldn’t have been prouder to have another generation following in his footsteps but says it’s crucial to have a passion for whatever they want to do in life.

“That is where success lies, and we have been blessed. God has blessed my family with many opportunities to buy additional farms and to do this together,” he says. “There was never a time that we couldn’t work out a disagreement. We have fun working together.”

Brubaker also notes that a significant element of their success is his sons’ willingness to take risks and their exceptional communication skills.

“It is key to keep moving ahead and pray for wisdom to stay ahead of it all,” he says. “We have great employees, and it is important to work with people who are smarter than us to stay ahead of the game,” he says.

When it comes to passing on advice to others who have a next generation interested in the family farm, Brubaker encourages to have the conversation sooner rather than later.

“Make decisions and preparations for the rest of your family as soon as you can. You can’t push this conversation because it is uncomfortable off for another day,” he says, sharing that financial advisors are essential to help figure out how it all fits together.

The journey into the future of agriculture is seldom straightforward. Both family dairies share that transparent communication, meticulous planning and a deep passion for agriculture are not only cornerstones to their success, but also inspire the next generation to follow in their footsteps.

Four Experts You Need On Your Succession Planning Team

Wed, 31 Jul 2024 18:14:24 GMT

When it comes time to get serious about succession planning, many operations turn to their lawyer to kick off the process. And while that’s a good place to start, Matt Gunderson, vice president of Farmers National Company, wants to make sure your journey doesn’t end there.

“A lot of times when folks think about estate planning, they think, ‘Well, I just need to go see an attorney, right?’ And to some degree, that answer is correct. But what we try to talk about is how to set up a good team,” he says.

Gunderson recently joined an episode of the Top Producer Podcast to share the four professionals he recommends for any succession plan, likening the process to building as sturdy of a stool as you can.

“What’s the best, most sturdy type of stool out there? Well, it’s a four-legged stool,” he says. “Think about that farm or ranch land asset as the seat. Then we start looking at the four legs.”

The Four Legs
1. Attorney
Gunderson stresses the importance of choosing the right lawyer for this process.

“There are different types of attorneys out there. So one, finding an attorney who does estate planning is important. But two, it really comes down to finding an attorney who understands estate planning and agricultural assets,” he says.

Be sure to also consider the state your land is in, and not just where you reside.

“We’ve seen where attorneys in one state drafted something according to that state’s laws, but where the land is at as a completely different example in terms of what that looks like from an estate standpoint,” Gunderson says.

2. CPA
He shares the second leg of the stool should be a CPA. This expert will help you understand the plan’s current tax implications and will also stay up to date on how that could change.

3. Financial Planner
The third leg is a financial planner. Financial planners can help you in some ways a CPA can’t. According to Gunderson, this role looks at future considerations for the plan, such as what it looks like for the upcoming generations.

Just as with attorneys, however, there are different types of financial planners, and it’s important to find one familiar with agriculture and the various accounts you will have.

4. Professional Manager
The fourth leg of Gunderson’s estate planning stool is a professional manager for the property.

“A professional manager can help take care of that land asset for the next generation if they’re not actively engaged in farming or they’re not actively near the property,” he says.

Gunderson adds that after this team is formed and your plan developed, you shouldn’t set it and forget it.

“Don’t throw it on the shelf or put it in a drawer. You better get that team back together every three years to look at that plan because things change, laws change and family dynamics change,” he says. “Was there a birth? Was there a death? Was there a marriage or divorce? Get that team back together to make sure that it’s up to date or it can still come back and bite you in a negative way.”

Catch up on episodes of the Top Producer Podcast

Farm Succession: Don't Neglect The Value Of Planning

Fri, 14 Jun 2024 20:30:00 GMT

The week of June 10, Farm Journal is celebrating the next generation of American agriculture. Our goal is to encourage you to plan for the future and cultivate multigenerational success through the transfer of skills and knowledge. Think tomorrow, act today to align your asset, resource and financial legacy.

Do you want to know the costliest mistake a farmer can make when it comes to safeguarding the future of their operation? It’s neglecting to plan or having an overly simple plan, says Jim Angell, an attorney with Kennedy Berkley.

There are all sorts of reasons farmers are lax about succession planning. Maybe the patriarch doesn’t want to give up control or face mortality. Maybe some of the kids don’t get along or the parents are stymied by the thought they need to treat all their kids equally.

“Farmers have spent 35 years in survival mode, and succession planning has barely registered,” he says. “The past five or six years they have gone from surviving to thriving, but it’s still hard for them to believe a sophisticated plan is necessary.”

That sophistication comes into play when deciding how to treat farm and non-farm siblings.

“Fair and equal are not the same,” Angell says. “The farming child(ren) needs to be provided with some advantages in order for the farm to survive. They need more value to keep the farm going, but there’s a difference between value and cash.”

Angell advises farmers separate the operational (business) side of the farm from the legacy (land). Equipment has to stay with the operational side, for example.

When it comes to the land, if it’s important for each child to own land, divide it up in tracts and don’t put multiple kids on a tract, he adds.

A succession plan often includes several documents, one of which should be a buy-sell agreement , Angell advises. If you are in business with someone, you should know how to exit the arrangement. A buy-sell agreement is a legally binding document between co-owners of a business that spells out how a business should be transferred if a co-owner leaves the business willingly or is terminated.

Legal Vs. Relationship Pieces

Speaking specifically to the next generation, Angell says don’t hesitate to push for communication. In his practice, he usually sees the next generation first to work on their estate plan, and then they bring in the senior generation.

For the senior generation, don’t believe the same philosophy your dad used: You get what you get, and you don’t throw a fit.

“ Please communicate ,” Angell says. ”Currently, my firm is involved in 10 to 15 disputes where land was distributed equally and kids can’t get along or an LLC was set up but there is no way out.”

The good news is there are legal devices to do whatever a farmer wants to do. The key is using the right mechanisms for the relationship pieces.

“Is it worth it to jeopardize your children’s relationship for any reason?” he asks.

Want more insights to plan for the future and be a leader in your field? Sign up to receive Farm Journal newsletters.

5 Conversations Every Family Should Have Before A Farm Transition

Thu, 13 Jun 2024 20:40:11 GMT

The week of June 10, Farm Journal is celebrating the next generation of American agriculture. Our goal is to encourage you to plan for the future and cultivate multigenerational success through the transfer of skills and knowledge. Think tomorrow, act today to align your asset, resource and financial legacy.

Before you handover the keys or step aside for the next generation, make sure you and your family are properly prepared for what comes next. Elaine Froese is a farm family transition expert, speaker and host of the Farm Family Harmony Podcast . She says we’re in the middle of agriculture’s “great wealth transfer” but there’s a serious lack of communication between generations.

“Often there are so many plans to be started that farmers are stymied, overwhelmed and anxious,” Froese says. “I’ve said many times that procrastination and conflict avoidance are killing agriculture.”

For those ready to be proactive in preparing for a farm transition, she recommends these five steps.

1. Calculate Your Income Stream.
Froese says farmers need to determine how they’ll maintain and secure a stream of personal income. Is that coming from their personal wealth or a combination of personal wealth and income from the farm. Once that’s sorted, farmers need to figure out what their living expenses really are apart from the farm.

“They have to figure out their own lifestyle costs first, where they’re going to live and what their lifestyle is going to be,” Froese advises.

2. Define Your Role.
Retiring farmers need to clearly define how they’ll show up for the operation after “retirement” from running the day-to-day. Does that mean fully stepping away, serving as a manager or simply as labor when needed, Froese asks.

“Many farmers who are male have their identity tied up in what they do,” she adds. “They have no capacity or understanding of how their roles are going to shift as they age in place at the farm.”

3. Talk to Your Spouse.
Retirement isn’t a singular decision. Froese says it’s important to discuss the transition to retirement with a spouse or significant other. He or she might have their own ideas of what will or should happen in retirement.

“They need to embrace a vision with their spouse because if the older farmer does not want the same thing as the older farmer’s spouse in regard to what their future role is then that transition plan is essentially stalled and not going anywhere,” Froese adds.

4. Build a Business Plan.
During a transition there will be differing opinions and passionate feelings about the direction of the farm. Froese says that’s expected and farmers need to remember different isn’t wrong, it’s just different. She recommends next-generation farmers bring a business or enterprise plan to the table that explains their intent for future growth.

“When you bring somebody back to the farm you need to generate at least $500,000 in additional gross income to support that new family,” Froese says. “People often do not pay attention to how many families a farm business can support and the level of support expected.”

5. Discuss Future Debt.
As a farmer transitions out of the principal operator role and focuses on retirement, often their risk tolerance for debt decreases. Taking out loans against the farm’s assets for expansion or technology upgrades might feel risky or even irresponsible. Froese says debt loads should be discussed and decided upon early in the transition.

“Many older farmers don’t want anymore debt, and they have it in mind they don’t want to pass debt on to the next generation,” she says. “But where is it written that the younger generations can’t manage the debt?”

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Now Is A Great Time to Make Sure Your Farm Can Survive

Wed, 12 Jun 2024 00:40:01 GMT

Identifying goals and assigning priorities builds a bridge from one generation to the next, says Rena Striegel with Transition Point Business Advisors, a farm succession planning consultant with 20 years of experience.

Especially with the current farm economic conditions and outlook, Striegel advises farmers to keep at it when it comes to planning, strategy, banker relationships and evaluating capital expenditures.

“It’s time to double down on what you can to pivot quickly when you have to,” she says. “Now is a great time to make sure the farm can survive. The farm business has to be made sturdy and stable before it can be shared with anyone else.”

Striegel expects the next downturn in agriculture to test the resiliency of farm businesses and the people in them.

“These times don’t care if you are personally worried,” she says. “It does reveal the need for a heavy dose of open and honest communication.”

Striegel encourages the next generation of on-farm leaders to do some self-reflection. How are you showing up on the farm? Do your actions meet up with your goals?

“If your father expects you to be on the farm, on time, demonstrating skills with a certain attitude, that’s how you need to show up,” she says. “How do you show up and does it align with what you want? You must be truthful about your priorities.”

From her consulting, she’s seen how the generation raised with social media is lacking previously engrained people skills.

“Emerging leaders need to be encouraged to evolve and have the right tools. For example, we aren’t teaching negotiation like we used to,” she says.

She highlights that expectations of work-life balance need to be assessed with the needs of the business and the priorities of its stakeholders.

“If you want to run the farm, but in the next breath say you want time off to go to all of the baseball games, it’s not that those two things can’t happen, but it’s about how you meet expectations and talk about what is important to you,” she says.

Patience might be the key component in your succession planning journey.

“It’s not easy for the next generation farmer to slow down and be patient,” she says. “But we are facing a downturn in the ag economy, and the older generations have lived through real trauma. If you dismiss the lessons they are sharing, it makes them even more anxious about turning over the reigns. If you aren’t willing to listen, you are showing you aren’t willing to learn from them.”

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The Next Generation Is Working To Secure The Farm

Tue, 11 Jun 2024 17:42:06 GMT

Editor’s Note: This is one article in a series that is included in the 2024 Farm Journal’s State of the Dairy Industry report. The full 16-page report will appear in the May/June issues of Dairy Herd Management and Milk Business Quarterly and will be published in this space over the next several weeks. To download the full report for free click here.

Georgia dairy farmer, Pete Gelber, who owns and operates Barrington Dairies in Montezuma,Ga., home to more than 13,500 cows, says as producers age, they must be willing to look in the mirror and ask tough questions, including what they want to happen to their farm and what’s in the best interest of all involved.

According to Shannon Ferrell, agricultural economics associate professor at Oklahoma State University, 88% of farmers and ranchers have no form of retirement plan.

“If you plan for another generation to come back to the farm, then you are going to have to determine how to financially support that,” he says. “Remember, if you choose not to do anything, that is a strategy that has a zero percent chance of working.”

With razor thin margins and an overall lackluster dairy market, it was not surprising when the majority of the respondents to our survey said they either lack succession planning or plan to maintain their current structure going forward. The overall concern as to how to pass the baton from one generation to the next is real, as 46% of respondents stated they do not have a succession plan or are unaware of the operations plans.

When you take a deeper dive, the larger-sized dairies tend to have a plan in place or are looking at succession planning. For dairies with 5,000+ cows, 42% of them say they have a plan in place, and 32% are in the stage of developing a plan. Findings are similar to dairies with 1,000 to 4,999 cows.

The small-sized dairies surveyed illustrated they are the least likely to have a plan in place, while dairies that plan to grow or expand are more likely to have a current structure plan in place.

The majority of respondents of all herd sizes said they plan to add a family member or bring a partner into their dairy in the next five years.

Even the most efficient and profitable herds need a transition plan from one generation to the next. Without it, they can disperse and become a statistic.

Succession plans don’t happen overnight. Begin conversation today about what your hopes are for the farm and work with a consultant on how to proceed forward with a plan to pass the farm onto the next generation or partner.

Farm Succession Planning: There's No Magic Wand But These Insights Can Help

Tue, 11 Jun 2024 15:35:36 GMT

Formulating your farm’s succession plan is likely not a straight line.

“It’s a puzzle. All the pieces have to fit together for the picture to look right,” says Polly Dobbs, an Indiana attorney who focuses on estate, wealth transfer and business succession planning. “I don’t have the magic wand. But I know farm owners have to stay focused on their end goal.”

From her professional experience, as well as being part of a seven-generation farm family, Dobbs shares the following observations and insights.

1. The upcoming generation needs to articulate what they want from the current ownership. “The next generation can’t be afraid to start the conversation,” she says. “It could be as simple as saying, ‘I want skin in the game’ or ‘how can we talk about how I could buy you out?’”

2. It’s valuable to share knowledge and experience. “Instead of having the mentality of ‘why is dad still here,’ ask ‘could I shadow you in marketing decisions,” she says.

3. Sweat equity is still often part of the equation for farm ownership transition. With her clients, Dobbs says about 60% of clients who have a family member successor say the next generation has earned the ability to come into ownership on discounted “family friendly” terms due to sweat equity. However, others feel the successive generation’s contributions were not up to expectations, so full price is charged to buy into ownership.

“There’s no legal answer here,” she says. “It’s about family goals. But it is important to be specific of what is required for someone to be able to take on ownership.”
“I ask every retiring age farmer, what is happening with the equipment. Charging a discounted price to buy machinery to someone who has worked hard alongside is like a deferred compensation plan,” she says.

4. “Those who have on-farm family successors are lucky,” she says.

Dobbs says the biggest trend she sees is farm owners looking outside the family tree for the next owners.

“If you’ve got a successor operator, they need continued access to the land base,” she says. “Sometimes the only focus is on how they are buying the machinery or buying the grain bins, but you can’t overlook their access to the land.”

5. Get everything in writing. “Young farmers should be nice to their landlords and plow their driveways, etc. Then ask to secure an option to continue to farm their ground and have a first right to buy it. Handshakes don’t count; it has to be in writing to matter,” Dobbs says.

Dobbs encourages farmers to consult with your local attorney and professional team who know the laws of your state.

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A Silent Legacy Will Fail: 3 Ways to Protect Your Assets Now

Mon, 10 Jun 2024 18:49:53 GMT

The week of June 10, Farm Journal is celebrating the next generation of American agriculture. Our goal is to encourage you to plan for the future and cultivate multigenerational success through the transfer of skills and knowledge. Think tomorrow, act today to align your asset, resource and financial legacy.

By Heather Gieseke

After witnessing a beloved and once-thriving family farm fail, I reached out to my colleague Kevin Bearley to make sense of what went wrong. As an estate and succession planning adviser for Pinion, Bearley often sees families make similar transition mistakes. For example:

Dad doesn’t want to deal with the issue of his own mortality. His father left it all to him to figure it out on his own, and it worked out.
The family avoids conversations about whether or when dad wants to retire.
Siblings or children don’t get along well, so parents delay retirement or succession planning because they fear it will increase conflict.
Thinking fair and equal means dividing everything evenly among on- and off-farm heirs.

But silence, or having no plan at all, is far worse than having even a bad plan in place.

Act Before Estate-Tax Exemption Drops
On top of that, there’s a compelling reason to address retirement and inheritance issues now. The estate-tax exemption will expire at the end of 2025, dropping from $13.61 million per person to $5 million (adjusted for inflation). The smaller exemption comes at a time when inflation and land values have ballooned. That’s led to growing anxiety about increased assets and estate-tax rates.

The government can currently tax up to 40% of an estate over $13.61 million. That’s set to change at the end of 2025, unless there’s an extension, and the government will be able to tax up to 40% of an estate over $5 million.
	Current 2024 Law	Proposed Change in 2026
Exemption (individual)	$13.61 million	$5 million*
Exemption (married)	$27.22 million	$10 million*
Estate and Gift Tax Rate	40%	40%

*Adjusted for inflation

“It’s imperative for the senior generation to have a plan because, if not, you’ll end up in a court proceeding,” says Bearley who’s an attorney and a CPA. “Judges don’t understand agriculture. They’ll want you to sell all assets, which could require selling land, and then you’ll have to pay your tax bill and attorney before splitting what’s left — and there’s rarely anything left.”

He recommends three techniques to protect your assets while the $13.61 million exemption is still in place:

Gift your assets. A husband or wife could use one spouse’s exemption to gift land and other assets while keeping the other spouse’s current $13.61 million tax exclusion.
Move your assets to the next generation. Transferring your assets to your heirs takes special expertise, but it can be a smart way to protect your estate from burdensome taxes.
Freeze your assets’ value. With the steady rise in land values, your farm’s worth could double in the next 10 years. If you take steps to freeze its value now, you won’t face a higher property valuation in the future, when tax-exemption rates drop to $5 million per person.

Bearley urges farm families to start today to devise a strategy to achieve your retirement goals or to pass on your estate to the next generation.

You’ll need to work with an attorney, a CPA and a family business consultant — trained advisers who understand farming. It takes time to find the right professionals, set goals, explore your options, map out a specific plan and communicate to all involved. Getting the right result for your family will help avoid strife, keep more of your wealth where you want it and sustain the farm for future generations.

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