Farm Succession Planning Never Stops

Farming is more than a job—it’s a way of life, a family tradition, and often, your greatest legacy. But securing that legacy for future generations requires more than hard work in the fields; it demands careful and ongoing succession planning. At Wagner Oehler, we believe that farm succession planning is not a one-time event; it can’t be if you are to be successful. It’s a continuous process, as essential as preparing the soil each spring, adapting to new markets, or safeguarding crops against unpredictable weather.

If you’ve already established a plan, that’s a great start—but ask yourself, when was the last time I reviewed it? If you’ve never started, consider this: the decisions you make today could mean the difference between your farm flourishing in the hands of your heirs or being sold to the highest bidder – an all too common and too real consequence of poor farm succession planning.

Why Farm Succession Planning is Continual

Farming is cyclical by nature, and so is the planning that keeps a family farm thriving. Over time, everything changes—your family, your finances, tax laws, and even your goals. What worked for your operation ten years ago may no longer make sense today. Perhaps a child who once planned to take over the farm has chosen another path, or maybe you’ve acquired new land that wasn’t accounted for in your original plan. It should not come as a surprise that what worked for your estate plan ten years ago may also no longer make sense today.

In Minnesota, farmers face unique challenges that demand an adaptable approach to estate planning:

• Rising Land Values: Farmland values are at historic highs, creating both opportunities and risks for families passing down agricultural assets.
• Non-Farming Heirs: Balancing the needs of farming and non-farming heirs is a delicate process, and without proper planning, it can lead to costly disputes.
• Tax and Debt Pressures: Without the right strategies in place, taxes and debts can jeopardize the farm’s future, forcing heirs to sell land to cover obligations. The combination of taxes and debts to a farming heir, if not intentionally managed, can result in your farming heir actually being worse off in the event of your death.

At Wagner Oehler, we specialize in helping farmers navigate these challenges with tailored estate plans designed to evolve alongside your family and your business.

Common Farm Succession Challenges

If you’re not convinced of the need for an updated plan, consider these common scenarios:

• Sibling Rivalries: One child has invested years of labor on the farm, while another has pursued a different career. Is your farming heir approaching 40 or 50 with virtually no assets in their name? How do you create a plan that feels fair while preserving the business?
• Tax Implications: An outdated plan could leave your heirs with unexpected tax burdens, potentially forcing the sale of farmland or equipment. Have you actually run the numbers to see what the impact would be to your farming heir upon your death? A recent review of an outdated estate plan revealed that, between paying off non-farming heirs and covering debt obligations, the farming heir’s operating costs would have tripled upon the passing of mom and dad.
• Generational Changes: As younger generations take on larger roles, their vision for the farm may differ from yours. How do you reconcile those differences and set them up for success? Are you prepared to allow the next generation to make some of their own mistakes? We believe this is a necessary part of grooming your farm successor.

These situations don’t resolve themselves. They require thoughtful planning, clear communication, and professional guidance.

Why Work with Wagner Oehler?

We know that farmers need more than a standard estate plan, and they should not work with just any lawyer. You need a team that understands the complexities of agricultural businesses, land ownership, and family dynamics. At Wagner Oehler, we’ve helped Minnesota farm families protect their legacies for decades, offering personalized strategies that go beyond generic legal solutions.

We take a proactive approach to planning, helping you:

• Evaluate and update your current plan to reflect new laws, goals, or family changes.
• Explore tools like family trusts, business entities, and buy-sell agreements to preserve the farm’s financial health.
• Create strategies that balance the needs of farming and non-farming heirs, reducing the risk of disputes.

Take Control of Your Farm’s Future

The time to act is now. Whether you’re starting your first succession plan or revisiting one from years ago, don’t wait until it’s too late. Life is unpredictable, but your farm’s future doesn’t have to be.

Let Wagner Oehler be your partner in securing your legacy. Contact us today to schedule a consultation. Together, we’ll build a plan that evolves with your family and ensures your farm remains a source of pride and prosperity for generations to come.

The farm is your legacy. Protect it with a plan that works as hard as you do. Farming matters.