The #1 Risk No Farmer Expects in Succession Planning

When most families think about succession planning for the farm, they focus on the obvious: taxes, land values, debt, and the details of ownership. But there’s another risk that often goes overlooked—one that can quietly dismantle generations of work in a matter of months.

That risk? Non-farming heirs.

Why Non-Farming Heirs Put the Farm at Risk

For generations, family farms have typically been passed on to those who continue farming. Your dad’s brothers and sisters likely didn’t inherit the farm. Your grandpa’s siblings didn’t either. In most families, non-farming heirs were bought out, gifted other assets, or otherwise excluded from ownership. That intentional decision is what allowed the farm to remain intact for you.

But somewhere along the way, that lesson can get lost. Today, many farmers feel pressure to “be fair” by dividing the farm equally among all their children—farming and non-farming alike. On the surface, that feels right. But here’s the problem: you can’t divide 160 acres, 1,000 acres, or 4,000 acres among multiple heirs and still expect the farm to survive.

Statistically, dividing land equally among farming and non-farming heirs almost guarantees the farm won’t make it another generation.

Equal Isn’t Always Fair

It’s important to remember that your farm exists today because earlier generations made tough choices. They ensured it stayed in the hands of those who worked it. If non-farming heirs are given ownership, the reality is that most will eventually sell. Maybe not out of malice—but because it makes financial sense for them. When that happens, the farm is no longer a family farm.

Trying to apply modern “equal inheritance” values to farmland often destroys the very legacy you’re trying to protect. Fairness doesn’t always mean dividing things evenly. It means recognizing that farming is different.

How to Treat Everyone Fairly

The good news is, there are ways to treat non-farming heirs fairly—without jeopardizing the farm. Options include:

• Life insurance designated for non-farming heirs
• Retirement accounts, savings, or investments allocated outside of the farm
• Non-farm assets like bank accounts or stock to balance inheritances

In fact, with thoughtful planning, non-farming heirs may even see better financial returns from those assets than they would from farmland.

Protecting the Farm for the Future

If your goal is to keep the farm in the family for the next generation and beyond, you must be intentional. Tools like wills, trusts, farm LLCs, and lifetime transfers can ensure the farm passes to your farming heir while still caring for your other children.

Generations before you showed courage by making tough decisions that kept the farm together. Now it’s your turn to do the same.

Succession planning isn’t just about fairness today—it’s about preserving your family’s legacy for the next 50, 100, or even 150 years.

To learn more about farm succession and estate planning, keep an eye on our Events page located at: https://www.wagnerlegalmn.com/events/ and visit Farm Lawyer.

If you’re ready to start being proactive about your estate plan, contact us to get started.

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