Passing on the family farm: Can the next generation afford it?
In the not so distant past, economics played a lesser role in farm succession planning. Let’s face it, with 7 dollar corn and 15 dollar beans, their generally was ample money to bring in the next generation into the farming operation and/or have the next generation buy out the older generation. Now, with prices that are break even or below, economics play a much greater role. The question becomes how do we ensure the next generation can financially afford to take over the farm? I was recently asked how does a farm family pass on a farm if the next generation cannot afford it. We all know it is next to impossible for someone to break into farming due to the capital costs of land, machinery, and so forth. So, how do we expect the next farming generation to do the same? In many instances, for the older generation, economics and the need for income is so important that succession plans do not get established because the older gene