Some reflections from my recent farm succession planning presentations.

I recently had the opportunity to speak to (and with) a few hundred Canadian farmers, then I hopped a plane for Indianapolis to put on a workshop for six multi-generation farm families.

All of this came just a week after my wife and I welcomed our 4th child into this world - a baby boy. (I owe her big time for handling the household with such grace while I was out & about)

Today, I’d like to highlight some of the key takeaways I had while presenting to, fielding questions from, and visiting with these many diverse farmers. Also, we have 3 upcoming virtual events this week I hope you’ll join us for.

Farm Succession Reflections

1/ Challenges don’t recognize borders

The vast majority of conversations and questions regarding farm succession planning don’t have to do with legal nuances or tax strategies. They have to do with things like family dynamics, fair vs. equal vs. equitable inheritances, training the next generation to become trusted stewards of the farm, and so on and so forth.

I was in Alberta, Canada and Indiana, both places where I am not licensed to practice law. Nor am I a tax professional. Yet we had more than enough topics to discuss because there are many succession planning considerations, specific to agriculture, that pop up consistently no matter which jurisdiction you might farm in. For example, an Alberta farm couple is just as concerned as their Indiana or South Dakota counterpart on when is the best time to bring kids’ spouses into the planning conversation. Or, what are steps to be taken to prepare the next generation to manage the operation?

So, I encourage farm families to seek out other peer families to get advice from and generally bounce ideas off of. Whether that’s through formal peer groups, like Braintrust Ag, or through meeting families at ag trade shows, seminars, or conventions, there’s a certain benefit to building those relationships with those outside your direct farming area. i.e. these families won’t be competing to lease the same land as you…

2/ Communication is hard…but worth it

If there’s one thing that often stalls farm succession planning, it’s communication. Talking openly about legacy, money, and fairness is deeply uncomfortable for many families—and understandably so. These conversations touch on personal and emotional topics that can quickly become heated or even avoided entirely. Yet, avoiding these discussions rarely leads to positive outcomes. If anything, it creates confusion and conflict down the road.

When families do take the step to communicate, even imperfectly, the results can be impressive. One strategy that was shared by multiple families is having regularly scheduled farm business meetings. Whether that’s weekly, monthly, or quarterly is up to you, but including succession planning as an agenda line-item is key. This sets a regular rhythm of talking about the farm business in a way separate from any family drama and those involved just know we’ll be discussing succession planning at the next meeting. Over time, this can not only clarify your succession plans but also strengthen family relationships.

The key is to start small and stay consistent. Whether it’s asking thoughtful questions like, “What does success look like for the next generation?” or using a worksheet to guide the discussion, the effort pays off. The most successful transitions aren’t just about flawless legal plans—they happen because families had the courage to talk, listen, and align on their shared future. It’s not easy, but it’s worth it.

3/ On-Farm vs. Off-Farm kids… fair vs. equal vs. equitable

One of the thorniest topics in farm succession planning is how to treat on-farm and off-farm kids. It’s not uncommon for parents to feel torn between being “fair” and dividing everything equally. But equal isn’t always equitable—and that’s where things get complicated. For instance, how do you balance the contributions of the child who stayed on the farm, investing sweat equity for years, with the other siblings who may not have been involved in day-to-day operations?

These decisions are rarely straightforward, but they’re crucial for avoiding resentment and fostering long-term family harmony. Creative solutions that reflect both the value of the farm and the unique contributions of each child do exist. Maybe the on-farm child receives a larger share of the business, while the off-farm siblings are compensated through other assets like life insurance or investments. Or the land is placed in a restrictive trust allowing access for the on-farm child but not sole ownership. The key is tailoring the plan to the family’s specific dynamics and circumstances.

What matters most is transparency. Openly discussing the reasoning behind decisions can go a long way in minimizing misunderstandings. While emotions will inevitably be part of the process, families who embrace fairness as a guiding principle—and clearly communicate what that means for them—are better positioned to preserve both their legacy and their relationships.

4/ Management transition before ownership transfer

One of the biggest misconceptions in farm succession planning is that ownership transfer needs to happen before or alongside management transition. In reality, transitioning management responsibilities ahead of ownership is often the most effective path forward. Shifting day-to-day decision-making to the next generation early on not only builds their confidence but also ensures they’re equipped to run the operation successfully when ownership eventually transfers.

The most successful transitions have included some form of gradual management handoff plan. For example, the younger generation might start by overseeing specific enterprise areas like livestock or crop production while the senior generation continues managing the financial side. Over time, responsibilities expand as trust and experience grow. This approach allows for mentorship, minimizes risk, and gives the current owners peace of mind knowing their successors are prepared.

The key to success is communication and clarity. A well-defined timeline for the management transition helps both generations stay aligned on expectations. It also allows the younger generation to prove themselves and gain valuable experience without the pressure of immediate ownership. By the time the farm changes hands legally, the new leaders are ready to hit the ground running—setting the operation up for long-term success.

5/ Final thoughts

So many more topics were covered throughout these last few weeks of meeting with farmers, but these generally stood out as the most frequent discussion points. A few other points to drive home:

• Ultimately it’s the owner generation’s property to do with as they choose. The successor generation can have an opinion, but at the end of the day it’s the owner’s decision.

• As succession planning goals become clear, build a team of advisors (financial, legal, peers) to help with actually building the plan.

• If the primary goal is to keep the family farm intact… approach each conversation with that thought in mind. Both generations ought to view their contributions through this lens: “Will this help keep the farm intact for generations?”

• Tax considerations are a part of the plan, but shouldn’t be the driving factor. A farmer once told me, “If I make every decision based on taxes, I’ll go broke. If I make no decisions based on taxes, I’ll go broke. The answer is somewhere in the middle.”

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What’s Happening?

1) Special Event | Tomorrow

We’re going to have a Zoom discussion with Jeff Kazin and Grant Wiese on these questions: Is there a fundamental deficiency in today's 4-year agriculture degree? If so, what can be done to elevate the university system? What are the alternatives?

Here’s the event link:

2) SOIL Gathering | Wednesday

Inheritance: Fair vs Equal vs Equitable

Join us for a member discussion on how to structure an inheritance when our farm assets heavily outweigh our non-farm assets. Learn from other members on what worked for them… or didn’t work.

3) Sunrise Session

Each Wednesday morning a group of us gather to learn more about Biblical teachings that we can apply to our daily lives to seek improvement as human beings.

Here’s the event link: Sunrise Session

Here’s a How-To Guide on attending Braintrust Ag events:

How-To Guide