“Transferring the Farm in a High Stakes Era”
Trisha Wagner Jackson County UW-Extension Agent
Maria Bendixen Clark County UW-Extension Agent
National Farm Business Management Conference
June 2010
Objectives
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Help producers discover how to address major issues
that can lead to failure in a multiple generation farm
business.
Provide the tools to develop a business plan.
Make producers aware of the tax consequences of
transferring the farm.
Address common business arrangements, issues,
concerns and questions.
Provide guidelines for honest open communication of
goals and ideas about the farm operation and the
transfer.
Why was the program developed
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Over the last several
years individual county
agents had been
hosting well attended
farm transfer
workshops. By offering
these more regionally
more resources could
be used to bring in top
notch information, and
experts.
Program development and delivery
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Marketing and management
group material and tools used
as a base
Annie’s Project format used as
a guide
Designed specifically for a
multi-generational audience
Include communication
segment
Program Topics:
Selecting the Farm Business
Arrangement that Works for you.
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Pros and Cons of the following business
arrangements.
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Sole Proprietorship
Partnership
LLC/LLP
S-Corporation
C- Corporation
Program Topics:
Tax considerations for farm transfer
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Information on Wisconsin and federal tax
laws that affect farm transfer including:
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Ordinary income tax
Capital gains tax
Estate tax
Gift tax
Program Topics:
Dealing with the 5 D’s
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Strategies to plan for the 5 D’s
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Death
Disability
Divorce
Debt
Disaster
Program Topics
So you want to farm (looking at the
numbers)
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Basic business planning for the next
generation:
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What does it take to get started?
What do I need to live on?
What can I reasonably expect to make?
Program Topics:
Financial Considerations for Retirement
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Future costs of health care?
What do you need to live on?
Can insurance cover some costs?
What can I get from the farm?
Program Topics:
The importance of Communications in
Farm Succession
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Communication between generations:
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When (set up formal meetings)
How (I statements, goal setting)
Participants
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242 total participants
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60% Transferring generation
40% Generation to be transferred to
Evaluation Summaries
What is the priority of your farm succession?
170
165
160
155
150
145
140
135
130
125
17.81% Maintain
17.6% Financial
long term viability of security of older
farm for future
generation
15.45% Fair
treatment of nonfarm heirs
15.13% Fair
treatment of onfarm heirs
16.09% Equal
treatment of all
heirs
17.92% Farm
and/or farmland
remains in the
family
Evaluation Summaries
Select one thing that you learned today, that will help you the
most in your farm succession planning
60
50
40
30
20
10
0
32% Ideas for
selecting a farm
business
arrangement
15% Suggestions
for improving
communication
40% Tax
considerations for
farm transfer
13% Financial
considerations for
retirement
Evaluation Summaries
As a result of attending this workshop which of the following
do you plan to do?
8% Begin a
retirement
account or
change
existing
40% Write a
will or modify
an existing
arrangement
9% None of
the above
43% Develop
a farm
business
arrangement
or modify
Evaluation Summaries
Please rate today's program
7% Fair
45%
Excellent
48% Good
Evaluation Summaries
I plan to use today's information in my future planning or
business operation
3% No
97% Yes
Evaluation Summaries
Mark all business structures that apply to your current farm
business operation:
15% Limited
Liability
Co./Partnership
(LLC/LLP)
4% Other
4% C Corporation
3% S Corporation
8% Partnership
67% Sole
Proprietorship
Follow up Meetings in the Local
County
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With the large group sizes the ability to ask
farm specific questions was reduced.
Follow up meetings were held with out Ag law
specialist so that farm specific questions could
be addressed.
The follow up meetings allowed farmers to get
connected with their local county agent who
could facilitate more discussion about the farm
transfer.
Where do we go from here or what is the
future of this program?
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Individual meetings with families
Follow–up survey for participants
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What are your goals?
What steps have you taken to meet them?
What resources do you need to meet them?
Factsheets:
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Meeting with your lawyer: what to prepare.
Basics of the Will.
Thank You!
Trisha Wagner- Jackson County UW-Extension
Agriculture Agent
trisha.wagner@ces.uwex.edu
Maria Bendixen- Clark County UW-Extension
Dairy and Livestock Agent
maria.bendixen@ces.uwex.edu