Farm succession is a hot topic today. It is no secret that farmers are getting older on average and the next generation is finding career opportunities off the farm. This means that when the current farming generation is gone, so too goes the farm. Far too often these farms go to development. Apartment buildings, subdivisions, and even solar energy production are a few examples. Even if the next generation is committed to the farm, are all the children on the same page? How do we keep farms operational? How do we preserve our farmland resources that are ever shrinking?
The answer may be simpler than you think: paperwork and planning. Strategically planning to ensure your family and your farm will survive the test of time. I know it’s difficult to talk about death or think about the death of a loved one, but if the tough conversations are had while everyone is living and in good health it can help when the inevitable does come. One thing that needs to be established early-on are the goals. Figure out your main objective. Generally, farmers are looking to keep their land in production and out of reach of developers, divide assets equally among their kids, and preserve as much wealth as possible while avoiding taxes. If the next generation is on the same page about protecting the farm and the land from development, there will be less conflict.
There are several directions to go when talking about succession. There could be a business entity involved, like setting up an LLC, to separate business and personal assets. If land preservation is a top priority, a conservation easement is a good way to go. Maybe there is a situation where no one wants to take over the farm, it might be time to arrange lease agreements with other farmers in the area so that developers don’t get hold of productive land. The most important piece of advice I can give without going too deep into this subject is get everything in writing. If the next generation is handling final arrangements, wills, and the farm business, there has to be something to follow. They will not know about the handshake agreements you made.
There are resources available for those farmers who are planning for the future. NC State has resources on their farm law webpage and specifically farm succession resources here: (https://farmlaw.ces.ncsu.edu/farm-succession/). There is also an in-person class coming up March 6, 2025 dealing with farm succession. This class will be held at the Lenoir County Extension Center. Registration is $25 and lunch is included. You can register at (https://go.ncsu.edu/farmlegacyeast) or scan the QR code on the event flyer. Details such as street address and topics covered can be found in the flyer.