Succession Planning for the Dairy Farm Business

Abstract

Succession planning is a family-by-family challenge. No two farms or families are alike. To illustrate, a farm couple with one adult child in the business and four other children not in the business has a dramatically different situation than another couple with two adult children, both in the business.

Tax issues, estate planning, business viability, financing and proper legal documentation often dominate succession planning and farm-transfer discussions. Family relations and issues such as goals, timing, communication and fairness typically receive far less attention. These often unappreciated issues, however, are the focus of this article.