As the age of farm operators increases, transferring the ownership and management of the family business to the next generation will become one of the most important issues farm families will face. While many farmers dream of seeing their legacy passed onto the next generation, many postpone initiating a plan for the transition of their business for a variety of reasons. Many claim that there is not enough “time” to discuss these matters. Or if planning does occur, it simply involves the senior generation drafting a will describing how the farm assets should be divided among heirs. The main question which the principal operator of a farm or agribusiness should ask is:
“Do I want to pass my farm operation to my heirs as an ongoing business or do I want to pass it on as a group of assets?” This article discusses the issues that farm families should address as they develop a plan to transition the family business to the next generation. Click here to read OSU Extension’s Transition Planning Worksheet.