Farm Succession
Research, Trends and
Programs in Wisconsin
Joy Kirkpatrick,
Outreach Specialist
UW Center for Dairy Profitability
The next 30 minutes
Wisconsin stats on farmer retirement &
succession
Farm Succession programs in Wisconsin
Farm Succession Resource Website
Farm Succession Assessment Tool
Farmer Retirement &
Succession Surveys
Retirement Survey – 2004
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73% not retiring or only semi-retiring
Of those retiring 60% staying in the home on
the farm
63% have not identified a successor
Income will come from sale of assets or
income from farm
If no identified successor – divide farm assets
equally
Farmer Retirement &
Succession Surveys
Succession Survey – 2009
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Structure, ownership, labor, management
(how many generations)
Who helped with the plan
How long to implement
How assets have been/will be transferred
Challenges
Priority objectives
Satisfaction
Who helped with the process?
Identifying the need for a plan
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Family members (33%)
Accountant (29%)
Providing information about succession
plans
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Accountant (38%)
Attorney (36%)
Educational conferences/meetings (35%)
Who helped with the process?
Helped to set succession plan objectives
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Attorney (32%)
Accountant (30%)
Family members (18%)
Development and writing of a succession
plan
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Attorney (51%)
Accountant (16%)
Planning
Chart 6. Three Largest Challenges to Farm Succession Planning
Determining Future Financial
Viability of the Farm
Gaining Sufficient Knowledge to
Make Decisions
Communication Between
Generations
Treating On-Farm and Off-Farm
Heirs Fairly
Ability of Older Generation to
Let Go of Management
Differing Expectations of
Generations
Finding Attorney Who
Understands Agriculture
Ability of Younger Generation to
Take Over Management
Other
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Satisfaction with the plan
Chart 7. Satisfaction with Succession Plan
Dissatisfied, 2%
Neutral, 36%
Satisfied, 62%
Transferring assets
Real Estate
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33% transferred at time of death
33% purchased
17% gifted
Farm assets other than real estate
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39% purchased
29% transferred at death
14% gifted
Priority Objectives of the Plan
Maintain the long term viability of the farm
for future generations
Financial security of the older generation
Farm and/or farmland remain in the family
Farm Succession Programs
One-day workshops
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Build awareness
Call it Estate Planning and they come out of
the woodwork!
Three-day workshops
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AgVentures – build in some strategic planning
exercises
Commitment, more than one generation
needed at workshops
Returning to the Farm
First Weekend
•How Big is Your House?
•What Do We Want? What Do We Need?
What Do We Expect? What Do We Fear?
•Legal Issues For Farmers
•Tax Issues Regarding Farm Succession
•Ag Law 101:Farm Business Arrangements
•Communications 101 & 102
•Finance 102
•Homework Assignments
Second Weekend
•Finance 201
•Realities of Transition Planning
•Dealing with the 5Ds
•Retirement Planning
•Finance 202
•Putting it All Together into a Cohesive Plan
Results
40 families and just over 100 people have
attended a Returning to the Farm
workshop
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Nine month follow-up evaluations
100% indicated improved skills in strategic
planning for succession
79% indicated improved communication skills
71% improved their financial analysis skills and
knowledge on treatment of heirs
Comments
AFTER the workshops
I have assessed my personal and
business goals and discussed
them with other family
members.
Strongly
disagree
0%
Disagree
0%
Agree
67%
Strongly
Agree
33%
I/we have analyzed the financial
capacity of the farm to carry
multiple families.
Strongly
disagree
0%
Disagree
6%
Agree
67%
Strongly
Agree
27%
Strongly
We have taken the first steps in
disagree
developing our written
0%
succession plan, in regards to
goals, issue identification, action
steps, and/or time lines.
Disagree
40%
Agree
53%
Strongly
Agree
7%
Strongly
disagree
7%
Disagree
33%
Agree
47%
Strongly
Agree
13%
We have successfully transferred
one aspect of the management
of the farm to the next
generation.
Other Resources
One-on-One consulting
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Agents/specialists teleconference
Farm Succession Assessment Tool
Farm Succession Resource website
Questions, Discussion?
Joy Kirkpatrick
Outreach Specialist
UW-Center for Dairy Profitability
608.263.3485
joy.kirkpatrick@ces.uwex.edu