Farm Succession Basics

What does succession planning cover?

Succession covers two separate questions: who will manage the farm and who will own it. These do not always have the same answer. It also includes retirement income for those stepping back, fair treatment of family members who are not farming, how land and equipment are transferred, and what happens if someone dies or becomes ill unexpectedly.

Even a small farm or homestead benefits from a plan. Without one, heirs may be left with difficult choices at a hard time.

Think of the plan as a living document. Health, family circumstances and markets change, so revisit it every year or two and after any major event such as a marriage, a birth, a death or a big purchase.

Why should you start early?

Transitions take years. Skills and knowledge need to be passed on, finances need to be arranged and family members need time to decide what they want. Starting early also gives you room to change course. Plans made in a crisis are rarely the best plans.

Begin with small steps: write down what you want for the farm, list the assets and debts and note who knows how to do what.

• Write your goals for the farm and for yourself
• List assets, debts and key knowledge
• Decide who needs to be part of the talks

How do you start the family conversation?

Pick a calm time and place, and invite everyone who has a stake. Ask each person what they want, whether that is to farm, to own, to receive fair value or to stay out of it. Listen without arguing the first time. Many farm families find a neutral facilitator, such as an extension educator or farm transition counselor, helpful.

Expect more than one meeting. Write down what is agreed and revisit it. Unspoken assumptions cause more trouble than disagreement does.

Fairness does not always mean equal. Families often struggle with the difference, and open conversation about what each person values helps. A neutral facilitator can keep the talk calm.

What decisions will need answers?

Common questions include whether the next operator will buy, lease or inherit land, how equipment and livestock will be valued and transferred, what retirement income those leaving will have, how to treat family members who do not farm and what roles each person will have in the meantime. Some families use a trial period of shared work before any transfer.

Write out the daily knowledge too: where the water shutoffs are, who the vet and supplier contacts are, which fields drain badly and which animals need special care.

• Land: sell, lease, gift or inherit
• Equipment, livestock and inventory
• Retirement income
• Roles and decision making in the meantime

Who should be on your advisory team?

Succession involves law, tax, finance and family, and no one person covers all of it. An attorney who works with farm transfers, a tax professional, a financial planner, a lender and an experienced facilitator are common members. Rules on estates, taxes, land transfers and farmland programs vary by state and change over time, so always get current local advice.

Ask each advisor how they have helped other farm families and what they charge. Request that advisors talk with each other so that the plan holds together.

Ask each advisor to explain the plan in plain language you could repeat to a relative. If you cannot, ask again.

What if there is no family successor?

Many farms have no family member ready to take over. Options may include selling, leasing to a beginning farmer, a mentorship that leads to a sale or a land trust arrangement. Several states and nonprofits connect retiring farmers with farmers seeking land. Your extension office can point you to programs in your area.

Whatever the path, begin with your own goals and then match the option to them. Document everything and keep the farm's records orderly, because clear records make any transfer easier.

How do you keep the farm running during the transition?

Handing over a farm takes time, and daily operations still need to run. Decide who makes which decisions during the handover, and put it in writing so that nobody is guessing. Many families move responsibility in stages, such as putting the next person in charge of one enterprise before the whole farm.

Plan for the unexpected too. Keep a list of key contacts, account locations and the animals' care routines where a trusted person can find them, and tell that person where it is.

Last reviewed: November 12, 2026. Written by the Homestead & Small Farm Editorial Team. See our editorial policy.