![]() It’s common for the next-generation of farmers to stick around to help mom and dad grow the farm but not grow themselves. Part of starting early means getting the house in order, so to speak. Not only must you start early, but you need to know your future goals for your family and the continuation of your farm. Ideally, start the process in your early-to-mid 40s, especially if your children are approaching college age. Starting the succession planning process late can make it impossible for your farm to continue after you pass away. These characteristics mean that more time is necessary to plan and execute a successful transition of ownership. Farms typically also have more equity tied up in assets than in other industries. Cash is often rolled back into the farm, impacting cash flow. Most farmers with large, successful operations don’t have a lot of cash on hand. Succession planning across all industries takes a lot of time, but agriculture has its own complexities to consider. Mistake #1: Waiting too Long to Begin Succession PlanningĪs the saying goes, “Failing to plan is planning to fail.” Those who are 65 and haven’t started this process are already behind the 8-ball. ![]() If you are considering passing your farm to the next generation, also known as succession planning, it’s important to be aware of potential pitfalls to make the transition as smooth as possible. ![]() These transfers happen today, too, but come with numerous business challenges and implications. 6 Common Mistakes to Consider When Transitioning Your Farmīack in the day, but not all that long ago, farmers inherited farms from their parents. ![]()
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