Farm transition planning

The Department of Agricultural Economics at Kansas State has a publication outlining 12 steps of a successful farm transition plan. University of Missouri Agricultural Business Specialist Wesley Tucker wrote an article outlining five phases of management transition during a family farm succession. Many other Universities, lenders, etc., have articles, newsletters, videos, podcasts, etc., on the topic as well – yet it’s still needed? Why?

Maybe it’s because it’s hard. A farm transition plan is difficult to think about, let alone start discussion around. They’re difficult to put into writing and even harder to implement or keep current. Yet, they’re necessary if you want your farm business to continue to be successful.

An Oklahoma State transition publication has a graphic showing the small business generational transition success rate. Success drastically declines through time with just a 30 percent success rate from the first to the second generation and a 12 percent success rate from the second to the third generation. Agricultural enterprise transitions aren’t exactly the same as small businesses, but with statistics (Purdue) suggesting only 55 percent of farms have a written succession plan, it’s not difficult to see how successful transitions could be a challenge.

David Hallauer54 Posts

David Hallauer is the Meadowlark Extension District agent in the areas of horticulture and crops and soils.

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