Farm transition - planning for the future

By Blake Jackson

Farm transitions necessitate careful consideration of the farm's financial and legal aspects. Stakeholders should clearly communicate their roles and intentions for the future. The process can be emotional, so involving a financial planner, attorney, and Extension educator is crucial for facilitating family discussions, financial decisions, and new farm manager training.

In Pennsylvania, the Center for Farm Transitions offers programs to aid in keeping land in agriculture, including the clean and green program for lower property taxes, conservation easements to protect farmland, and agricultural security areas for larger farms. PA Farm Link connects new and existing farmers in the state, assisting with farm transition through listings and workshops. USDA resources, such as guaranteed loans and land contract guarantees, support farm transitioning. The University of Vermont and University of Minnesota provide tools and assistance for creating and reviewing farm transition plans. Planning for retirement should also include considerations for long-term care costs, with Medicare and Medicaid providing coverage for specific situations.

The U.S. Department of Health and Human Services offers detailed information on long-term care. The Ag Transitions website from the University of Minnesota and resources from the University of Maryland's Farm Transition and Estate Planning website are valuable for creating transition plans. Penn State Extension offers programs and workshops to facilitate farm transition planning, emphasizing the importance of intergenerational programming. Seeking professional assistance, even if developing a plan independently, is recommended to ensure its effectiveness and compliance with evolving estate laws. It's crucial to initiate the transition process early and regularly review plans to adapt to changing circumstances.

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