Why You Should Start Succession Planning Earlier Than You Think

If you are one of the millions of farmers only a decade away from retirement, it’s crucial to begin succession planning right away. Being proactive can help you prepare for tax impacts, plan long-term goals for your ag operation, and benefit your family.

Succession Planning 101 is your four-step guide to protecting your farm’s future. Download the free PDF from FBN® Finance here now or continue reading below for more information, including an opportunity to connect with an advisor to discuss land financing for you or your successors.


When Should You Begin Succession Planning?

Even if your retirement years seem distant, preparing well in advance can help you secure your own financial future and safeguard the future of your farm. Due to its complex nature, succession planning can often take up to two years, not including the additional time it can take to reach agreed upon terms. It’s a good idea to begin succession planning as early as possible.


3 Reasons to Begin Succession Planning Early

Beginning your succession planning early can help with:

1. Making Informed Decisions
You have no doubt spent years nurturing your farmland, so it makes sense to harness that same care into planning what happens to your ag operation when you are ready to retire.

Succession planning can be time consuming and sometimes overwhelming as you gather necessary documentation, manage your family’s expectations alongside your own priorities, and deal with legal matters. Allotting time to educate yourself and weigh your options will help you make more informed decisions.

2. Training the Next Generation
The average age of U.S. farmers is 58 years old, and it’s rising. However, the number of farmers under the age of 35 is just 9%.

If your successors have several years to work alongside you, they’ll be in a better position to learn key techniques, ask questions they may not think of until they’ve been doing the job for a while, and build relationships with partners and suppliers under your mentorship.

3. Creating a Contingency Plan

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