The average age of farmers is increasing. USDA census data shows that the average age of farmers was just over 57 years old in 2017, which is an increase from 2012 data, where the average age was 56. This trend highlights how important it is for farmers to have a succession plan. However, the same census data that reported the increasing ages also found that slightly over half of US farmers were involved in some sort of succession plan.
Kevin Brooks, Business Management and Marketing Educator with the University of Illinois Extension says when it comes to starting a succession, communication is important in making sure every party is on the same page.
“That conversation needs to express if I’m in the role of retiring from the farm operation and planning for what happens when I’m not able to make decisions,” explained Brooks. “Not only do I have to relate what I think that plan should look like, but I need to be asking questions and doing a lot of listening as to what those heirs want and can be able to handle.”
Where it gets complicated is when there are multiple family members involved. In that situation, Brook stresses that communication is key when deciding on who is farming, cash rent, and even handling farm trusts.
But what about if there are no heirs lined up to take over?
“This is just an opinion on my part, but a lot of times farmers in that position try to get it to where the farm is exchanged in about three, maybe five years. That is a very big amount of money and assets to exchange, pay for, find funding for, have enough equity in the operation to make that successful,” said Brooks. “The more successful ones, they start 10 years ahead and gradually have the person wanting to take reins of the farm takeover.”
For resources on starting or managing a farm succession plan, visit the University of Illinois Extension website.
Check out the full interview with Kevin Brooks here.
