Transferring your farm to the next generation : vimarsana.co

Transferring your farm to the next generation


Sources: Jennifer Hunter, associate extension professor UK
The average age of farm operators in Kentucky is increasing, and over the next several years, many farm families will consider transitioning their farm to the next generation. The decision of when and how to begin the farm transition process can be difficult; often, farm families avoid the issue because it can be a difficult topic to discuss.
It is important to realize that at some point every farm business will experience a transfer of ownership, either with or without owner participation. The farm business can transfer in one of two ways: either as a viable farm business or as a set of assets. Typically, the goal of many families is to successfully transfer a viable farm business. But only about 30 percent of family farm businesses successfully transfer to the second generation, with less than 10 percent successfully transferring to the third generation. The majority of failures occur following the owners death due to limited foresight, planning and capital. However, with proper planning and family communication your farm business is less likely to become a failed statistic.

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