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
In part six of his blog series,"Top 10 Developments in Ag Law and Tax in 2023,” farm legal expert Roger McEowen tackles issue #2, foreign ownership of ag land.
February 02, 2024 08:00 AM
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In part five of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen tackles issue number three, California’s Prop 12 pork regulations.
February 01, 2024 04:06 PM
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In part four of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen tackles issue number four, the Employment Retention Credit.
January 31, 2024 09:00 AM
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In part three of his blog series, “Top 10 Developments in Ag Law and Tax in 2023,” Roger McEowen covers the Corps of Engineers’ mismanagement of Missouri River water levels.
January 30, 2024 02:29 PM
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Two more key developments in ag law and taxation from 2023, a crackdown on biodiesel fraud and developments in self-employment taxation (#7 and #6), are the topic of today’s Firm to Farm blog post, the second in a series by RFD-TV agri-legal expert Roger McEowen.
January 18, 2024 12:44 PM
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The start of the review of the most important ag law and tax developments of 2023—that is the topic of today’s Firm to Farm blog post by RFD-TV agri-legal expert Roger A. McEowen
January 04, 2024 12:20 PM
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If you are thinking about making substantial gifts and/or doing so in a complicated fashion, make sure to get good professional advice beforehand. In his latest Firm to Farm blog post, RFD-TV Agri-Legal Expert Roger McEowen tackles the complex rules surrounding financial gifts, charitable donations and estate transfer.
December 15, 2023 03:12 PM
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But, what does “detached and disinterested” mean? When is a transfer of funds a gift — at least in the eyes of the IRS? That is the topic of today’s Firm to Farm blog post by RFD-TV’s Agri-Legal Expert Roger A.McEowen.
December 13, 2023 11:07 AM
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Just how much are probate fees? How are they determined? That is the topic of today’s Firm to Farm blog post by RFD-TV’s Agri-Legal Expert Roger A. McEowen.
December 12, 2023 11:23 AM
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