Working in a farm successor 

as part of a 

retirement plan

To the Editor,

Are you one of the many farmers without an identified farm successor? Purdue University says that’s around 75 percent, and about half expect nonfamily members to take over. A gradual shift of responsibilities and ownership, plus an extended mentoring period, can help ensure the continued success of the farm business.

After checking out a candidate’s experience and references, a short trial period with paid labor can be a good step. This probationary period can help both of you assess how well you work together, how your daily priorities match up, and how you deal with setbacks.

A phased transition plan can follow, based on the goals and capabilities of you and your successor. Responsibilities for farm decisions and management can be shifted gradually or by specific enterprises.

A written transition plan can ensure that timing and responsibilities are clear. A five-year plan for major progress will tell you if it’s working and will reassure the new farmer that her time investment in your business is on track.

You have gained skills and have built a business to withstand financial, weather, and market risks. A new farmer will benefit from your knowledge of your land and from your experience in the business. Remaining a minority partner or a mentor gives access to your valuable advice. 

But your successor will be operating in a world with a market and regulatory climate that differs from when you farmed. You have to be prepared to accept that decisions will be made that would not match yours.

You’ll need to eventually accept that you’ve provided as much help as you can and that the business has moved beyond your reach. It will succeed or fail on its owner’s strengths, just as it did when you started out.

Established in 1973, the Center for Rural Affairs is a private, nonprofit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.

Wyatt Fraas, associate director of farm and 

community, Center for Rural Affairs