ABSTRACT

The farm business includes people, the assets and liabilities of the farm business finances, the day-to-day operation, the marketing and purchasing as well as the labour, management and decision making aspects. A farming estate plan must also account for the fact that the returned earnings of US farm assets are not traditionally very attractive to non-farming heirs. Transitioning a farm business from one generation to another involves much more than simply transferring ownership of the farm assets. It involves passing on the skills and knowledge the owner has acquired over time and the ability to manage the farm business profitably. A crucial skill that many farmers lack is the skill of communication. A detailed management plan describing how management decisions will be made and who will be responsible to make them is critical. Ownership of farm assets that are planned to pass during the lifetime of the farm owners should be well underway during the withdrawal stage.