The holidays have a way of bringing families back to the same table where so many important decisions have been made over the years.
As stories are shared and traditions passed down, many producers find themselves wondering about the future: Who will carry this farm forward? These moments of togetherness can be the perfect time to talk openly about the legacy you’ve built—and how to ensure it continues for the next generation.
The reality of farm transitions
Many retiring operators haven’t developed a clear plan for passing their farm on. And for some, there isn’t a family member at their table who is either willing, ready, or able to pass it on to. “Without a clear transition plan, farms may be left unproductive or sold or divided in ways that don’t align with the owner’s goals or the next generation’s needs,” said Lance Woodbury, family farm business adviser at Pinion.
Succession planning should be treated as a strategic business process, not a one-time decision. “Transitioning a farm successfully is about more than just ownership—it’s about ensuring the operation continues to thrive for years to come,” Woodbury said.
Four paths to keep farms thriving
Farm owners have several options when planning a transition, each with its own benefits and challenges:
1. Full transfer to a successor Whether it’s a family member or an outside buyer, transferring full ownership can provide financial security for retiring operators while giving the next generation time to grow into the role. “A thoughtful transition allows retiring operators to leave on their terms while empowering new operators to succeed,” Woodbury notes.
2. Partnerships or mergers Combining operations with another farm or forming partnerships can improve efficiency, expand scale, and diversify risk. Success depends on careful structuring and clear agreements.
3. Growth or diversification to prepare successors Sometimes the farm must expand or diversify before it can support a new generation. Strategic investments in equipment, technology or new crops can create a sustainable foundation for future operators. “Helping the next generation grow into leadership often starts with creating room for them to manage and scale the operation,” Woodbury said.
4. Bringing in new producers Not all farms will pass to a family member. Retiring operators can mentor or partner with young producers, offering access to land and equipment while keeping the farm productive. “By connecting transitioning farmers with aspiring operators, land stays in production and the next generation gains a foothold,” Woodbury said.
Steps to get started
Producers considering transition should approach it as a process:
· Establish a clear succession plan and timeline.
· Conduct estate and tax planning to protect family interests.
· Perform a fair business valuation to guide decisions.
· Benchmark farm performance to identify strengths and areas for growth.
· Carefully structure partnerships or mergers.
· Ensure compliance with Farm Service Agency and other regulatory requirements.
Owners who plan ahead gain control over the transition, maximize the value of their operation, and preserve their legacy for the next generation.
Why it matters
The next wave of farm transitions is both a challenge and an opportunity. Thoughtful planning can keep land productive, introduce young farmers to the industry, and sustain the vitality of rural communities. As Woodbury explains, “Transition planning is about securing the future—not just for the farm, but for the families and communities it supports.”
Editor’s note: Keaton Dugan, a certified public accountant, advises farmers and agribusiness owners on strategic tax planning, succession strategies, and long-term financial sustainability. Whether the goal is to expand operations, transition ownership, or optimize tax structures, Dugan draws on his experience as a trusted advisor and his background working on his family’s multi-generational farm to deliver practical, tailored solutions. Contact him at [email protected].
