NASHVILLE, Tenn. (RFD-TV) — Passing the farm on should not be guesswork. With margins tight and operators aging, the stakes for rural communities — land stewardship, jobs, and local tax bases — are rising fast.
While nearly 70 percent of farmers planned to transition by 2025, according to AgAmerica, only one in four families has a formal succession plan — even as family farms make up 95 percent of U.S. operations and nearly half of all farmland could change hands over the next 20 years.
The backdrop is not easy.
The U.S. lost more than 140,000 farms from 2017 to 2022, plus another 20,000 since; total farms have dipped below two million; and farmland has fallen to about 880 million acres. Average farm size has grown by 20 acres — nudging more estates into potential federal tax exposure. One-third of producers are 65 or older, while fewer than one in ten is under 35.
Practical steps help
Set clear goals; talk early and often; use asset-splitting or long-term buyouts for multiple heirs; choose tools for machinery, livestock, and land transfers; and lean on pros — tax advisors, ag mediation, and lenders — to structure a durable, affordable plan.
Farm-Level Takeaway: Treat succession like any major crop — plan early, document clearly, and calibrate cash flow so the next generation can succeed.
Tony St. James
RFD-TV News contributor Roger McOwen covers important topics in ag law and taxation, including FBAR, Read Before Signing, Reporting 4-H Income, and Attorney-Client Privilege.
RFD-TV Agricultural Law & Taxation expert Roger McEowen discusses the Supreme Court’s recent repeal of the Chevron agreement and other current topics in ag law.
With today’s post, RFD-TV Ag Legal & Tax Expert Roger McEowen focuses on some more common issues farmers, ranchers, and rural landowners frequently face.
Roger McOwen started a new farm law and taxation blog that contains a “Rural Practice Digest.” You can access it through a subscription to his new Substack blog. Find the link here.
The topics in ag law and tax are diverse. There’s never a dull moment. For now, here’s a selection of various ag law topics from RFD-TV Agricultural Law & Tax expert Roger McEowen.
The new approach to animal identification in the cattle industry—that’s the topic of this Firm to Farm blog post by RFD-TV agri-legal expert Roger McEowen with the Washburn School of Law.
From the U.S. Supreme Court down to local jurisdictions, the current developments just keep on rolling in agricultural law and taxation. Here are some recent developments.
Researchers in Denmark and St. Jude Hospital submitted a new study for peer review providing new insight into how High Path Avian Flu (HPAI) H5N1 in dairy cattle differs from avian cases.
Since the Tennessee Main Street program’s inception in 2010, 78 rural commercial districts have been improved. These 12 new additions bring that total number up to 90.
April 24, 2024 12:15 PM
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