Thinking about passing on your farm business can be emotional and overwhelming, even if you plan on keeping the business within the family. Although you may not be retiring anytime soon, you should consider putting a succession plan in place. It’s important to clearly communicate all of your intentions and future goals for the business and to keep your farming legacy intact. This is extremely helpful as when the time comes, the transition is seamless. 

There is a lot to consider and people to communicate with when creating a succession plan. If the business remains within the family, it’s key to have clear discussions with the family members who will and will not be involved with taking over or operating the farm. It’s important to identify everyone’s role and define expectations for the business. The plan should also include what role you’ll be playing once the transition is made. For instance, will you continue living on the farm or will you move? Will you still be involved in small ways, help with harvesting or in decisions regarding day-to-day operations? It may feel tedious, but the more questions that are answered ahead of time, the smoother the transition will be. 

You’ll also need to put together a network of people to help you. This should include an attorney who will be helpful in drawing up legal documents and an accountant that can tell you about available tax benefits. Finally, you’ll want to find a reliable ag banker who can be an insightful sounding board. Your trusted banker can also help with potential financing of the property and discuss financial implications that may occur during the transition. 

Waypoint Bank has over 140 years of experience in agriculture financing. Many of our clients are farmers, and it is our privilege to help families continue their farming legacies and help future farming generations succeed.

To consult with one of our ag bankers, please contact your local branch.

Since 1883, Waypoint Bank has been providing superior financial solutions that promote the small-town approach of putting relationships first. For 140 years, we’ve been earning your trust in the most friendly and professional manner possible while guiding your success.