For many farmers, it’s a big decision to retire and pass your farm on to a family member. According to Cary Knudson, a wealth management advisor at Farm Bureau Financial Services, having a strong plan in place is the key. Here, Knudson shares a few tips to make sure you have a successful farm transition.

Get Started Early

Every situation and every farm is different. Some transitions can take several years due to factors like equipment leases and land registration, so it’s important that you’re having these conversations early. Use this time to ensure your planned successor is still interested and make sure that everyone involved is on the same page as to what steps need to be taken.

Know Who to Include

Knudson says that, early on, it’s important to get feedback from everybody in your family. “You want everybody involved, even if you have two [or] three kids who are not a part of the farming atmosphere,” Knudson says. Then, as conversations progress and reach more advanced stages, the non-farming members of the family should take a step back.

Build a Transition Team

Your lending institution representative, an attorney, a tax accountant and the heirs to the farm are all people who should be a part of any “transition team.” Someone from Farm Bureau Financial Services can also act as a facilitator and help farmers get access to some of these services as well. “If a client/member wants to go through this, there is no reason why we can’t help them get them the support that they need,” Knudson says.

Define Your Expectations

Farm transitioning is not a simple process. It’s important to have a “vision” of what each stage of the transition will look like. Reach out and make sure that everyone involved is aware of how you want the transition to go. “The worst plan is one that’s not told to anybody,” Knudson says.

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