Content
Family Farm Succession and Transitions
Planning retirement from farming is something many farmers hesitate to consider. Today’s program highlights why it matters, and Extension Ag Economist Anastacia Meyer says planning and preparation are critical for the operation’s future owners and the current owner’s retirement.
View Transcript
[Brad Mills, Program Host]
Nebraska Extension Almanac.
Transferring your farm operation onto the next generation can be quite tricky, and full of potential long term issues.
Nebraska extension ag economist, Anastasia Meyer says, coming up with a solid plan right now, is the best way forward, and will solidify your wishes, as your farm will be taken care of after you retire or pass away.
[Anastacia Meyer, Nebraska Extension Ag Economist]
Let's talk about succession planning, right?
What does this look like?
What is succession planning?
Well, succession planning is how do you transfer your business onto the next generation, right?
So we break this down into 3 different areas.
We have labor, we have management, and we have ownership.
The owners are typically willing to give up the labor the first.
It's the easiest thing to do, especially if, you know, they're feeling it in their bones and they can't physically do this stuff anymore.
So labor is often the easiest.
But we have to remember that no farmer ranch air or non-air that is coming back to the farm wants to just be a laborer their whole life.
That's usually when we're seeing disagreements among family that they want to start making those decisions.
And so how do I work them into the next tier, the management tier?
This key part, the middle part is the biggest key to success.
How are you training them to manage the farmer ranch before you transfer it?
Start inviting them to the bank meetings, to the insurance meetings.
Start training them on.
How do you make these decisions, right?
Start them all small when maybe we're talking about 10s of 1000s of dollars in decisions, whether it's buying bowls or seed selection.
Before you pass away and now they have ownership.
And they're making 100s of 1000s dollars decisions, right?
So this management is what we really need to focus on in a transition plan and how do we train the next generation to take over management?
It's overwhelming.
When landowners pass on, the heir is inherit and they've had no management experience.
This is often overwhelming and this kind of decides when some people aren't going to sell their ground because they can't manage it.
So, that, before we go into ownership, let's focus on the management aspect.
So like I said, invite them.
Invite those to them to those meetings.
Answer those questions of, well, why did you do this?
Why did we do this?
It's really simple to say, well, that's just because, like, that's just the way it is, right?
We don't want to always explain ourselves.
But if we're passing on a farmer ranch, we have to be able to say why we are making these decisions and how they affect the farmer ranch operation overall.
Again, we talked about death, disability, divorce, bankruptcy, but, you know, those could happen tomorrow, they could happen 10, 20 years from now.
So let's set, let's start these management processing and training now in case something does happen.
And then also tell them what structures or agreements do we have in place?
So if they're coming back, you need to have a position description for them.
But what is your operation agreements look like?
Are you in an LLC entity agreements?
What, where are your leases at?
What do your leases say?
Are there any buy sale trade agreements?
It is amazing when you work through it, through families, farms, or ranches when, you know, they thought that they owned the ground that was around them, but maybe they just owned the house and that the LLC or something else on the ground that the house sat on.
So those small nuances of farms in every farm has those nuances.
Make sure that you're training the next generation to take them over.
[Brad Mills, Program Host]
Today's program was a portion taken from a recent farmcast podcast offered by UNL Center for Ag Profitability.
To hear the entire program, as well as a five-part series on transition and succession, go to cap.unl.edu or download from Apple Podcasts or Spotify.
For Nebraska Extension Almanac, I'm Brad Mills.
Nebraska Extension Almanac is a production of IE&R Media and Nebraska Extension.
For more information on how your university is serving Nebraskans, go to extension.unl.edu.
Sunset Planning Part 1
Many farmers aren’t interested in retirement for several reasons. Extension Ag Economist Jessica Groskopf talks about the financial issues farmers face in their final years on the operation, and the importance of making a plan to scale back their involvement and let go of day-to-day decision making.
View Transcript
[Brad Mills, Program Host]
Nebraska Extension Almanac.
Planning your operations future can cause some significant headaches and problems, especially if you're not ready to retire.
On today's almanac, extension agonomist Jessica Groskoff talks about scaling back your involvement in everyday operations.
She begins today's program by encouraging farmers to reevaluate current business documents, and relates that to what needs to be done when retirement is looming.
[Jessica Groskopf, Nebraska Extension Ag Economist]
So if you have an LLC agreement, if you have an entity or a partnership agreement, there's quite a bit of information in there that is going to impact what happens with your farm or your ranch business.
So you might be sitting here today and saying, I've done nothing.
But I happen to have an LLC agreement.
And so I'm going to go through the next 2 steps of planning, which will also, Lead into that because when we have signed legal documents, those legal documents do come into play, even if we haven't thought about them as puzzle pieces that fit together.
So the next segment of planning that we're going to focus on is what we like to call sunset planning.
This used to be titled retirement planning, but Anastasia and I are both fully aware that farmers and rangers rarely actually plan to retire.
So we call it sunset planning because there is that kind of end of your life where you either want to step back from that business or you are forced to step back from that business for medical reasons.
So, Sunset planning is really thinking about what happens when I maybe step back and let someone else step in to more of that that decision making role and maybe my hat shifts from owner operator more to just owner?
So let's let's take a look at sunset planning a little bit more.
So again, we're fully aware that only about 20% of farmers and rangers plan to completely retire from farming or ranching.
We did a survey in 2017 and asked why.
Why don't you want to step back?
And, You know, I think there's some things on here that aren't surprising. 75% said they didn't want to give up control.
We know that the passing of the torch between generations takes a while.
A lot of farmers and rangers who are of a traditional retirement age.
Maybe have only had actual decision making power over their business for a few years because their parents didn't pass on that power to them until just recently.
We know that equipment plays a role in that.
It's, um, Great to have modern equipment that allows folks to farm longer, right?
It's less strenuous on the body. 66% say that if they quit, they would die.
So they relate it to their own mortality, that's what that means.
But I really want to highlight, The one that says 62% cannot afford to retire.
62%.
Of farmers and ranchers say they cannot afford to retire.
Sometimes this is not a control issue.
Sometimes this is a financial issue.
Often, farm and range families have put everything.
And I mean everything back into the business.
So unlike their urban counterparts, right?
We don't have the retirement accounts and the investment accounts that complement the business.
A lot of that was put into the business.
What we see folks doing is liquidating equipment, and then renting out land in order to retire.
So sometimes I think this is slightly an illusion.
That comes from not having like a specific retirement account that exists, but I do think this financial concern regarding retirement is something that really needs to be addressed as we talk about.
Okay, if I have someone coming back in the business and I need to step back.
What am I going to do in those sunset ears?
And frankly, how am I going to afford to live?
[Brad Mills, Program Host]
There is much more to cover on this topic of sunset planning for farmers and ranchers?
Stay tuned to future programs where Jessica talks about retirement planning that makes sense for both the retiring owner and the profitability of the future owner of the farm.
For Nebraska Extension Almanac, I'm Brad Mills, Nebraska Extension Almanac is a production of IANR Media, and Nebraska Extension.
For more information on how your university is serving Nebraskans, go to extension.unl.edu.
Sunset Planning Part 2
Building a farm operation is hard work. Most farmers pour everything they have back into the business and ignore retirement planning. Extension Ag Economist Jessica Groskopf encourages producers to make solid plans now for retirement.
View Transcript
[Brad Mills, Program Host]
Nebraska Extension Almanac.
A lot of farm owners have built their operation over decades by putting all of their resources, including finances for retirement, back into the farm.
This makes the thought of actually retiring almost financially impossible.
On today's almanac, extension ag economist Jessica Groskoff covers the difficult topic of farm owner retirement and future owner success.
[Jessica Groskopf, Nebraska Extension Ag Economist]
I do think this financial concern regarding retirement is something that really needs to be addressed as we talk about.
Okay, if I have someone coming back in the business and I need to step back.
What am I going to do in those sunset years?
And frankly, how am I going to afford to live?
We cannot make one generation destitute to bring in another.
And that goes both ways, right?
We can't make the the incoming generation.
Live a difficult life so that the older generation can have a comfortable life.
We have to make sure that they have a comfortable level of living support for both generations or all generations that come and live and work in the farming and ranching business.
And this is a huge challenge as we talk about this transition process is this business has to be able to support multiple family units.
And we have to do that in a way that everybody has a livable wage and a livable standard of living.
Now, does that mean that the farm or the range business has to provide the full standard of living?
Not necessarily, but we do have to know that everyone has the means to have a reasonable lifestyle.
Okay.
The other one that jumps out to me here is we get deeper into the list is that 55% of farmers and ranchers in the survey said that they do not have a successor coming back into the business. 55% do not have someone. Coming back into the business.
So, again, as we think about this process, it's difficult to retire from the business when you don't know who that successor is going to be, who's really going to be the next manager of this business.
I think this is extraordinarily important and part of why Nebraska extension has the Nebraska Landlink program.
The landlink program is a program specifically for farmers and rangers who do not have someone coming back into their business.
What the program does is it matches, um, existing farmers and rangers with new and beginning producers to help them get started.
So, how do we know?
How do we know if we're ready to kind of step back without stepping away?
How do we know that we're ready to slow down a little bit and let someone else come into our business?
And this requires actual planning.
And I like to see you do that planning with a certified financial planner, a CFP, um, or a financial advisor that has agricultural knowledge and an agricultural background.
I'm not going to go through all of the questions.
Um, but these are the kinds of questions that you need to discuss with them and and things you're going to need answers to before you walk into a meeting with a financial advisor.
I think these are the questions that don't get enough attention.
Um, by financial advisors, especially when what they're working with farm and reach families.
[Brad Mills, Program Host]
A full series of podcasts on farm succession and transition are available at UNL Center for Ag Profitabilities website.
Just visit cap.unl.edu or download from Apple Podcasts or Spotify.
For Nebraska Extension Almanac.
I'm Brad Mills.
Nebraska Extension Almanac is a production of IANR Media and Nebraska Extension.
For more information on how your university is serving Nebraskans, go to extension.unl.edu.
Sunset Planning Part 3
Older farmers can be a little stubborn when it comes to retirement, while others feel it’s out of the question due to financial or health-related issues. Extension Ag Economist Jessica Groskopf talks about the importance of planning ahead for both.
View Transcript
[Brad Mills, Program Host]
Nebraska Extension Almanac.
On our final look at the important topic of Sunset retirement planning for farm and ranch owners, Extension Agaconomist Jessica Grosskov talks about what you should be discussing with a financial planner.
On today's program, she dives into the topic of mapping out some key financial issues that you should be talking about with a professional as well as long-term healthcare.
[Jessica Groskopf, Nebraska Extension Ag Economist]
What is your withdrawal strategy?
If you do have retirement accounts or a pension plan, um, or some sort of investments, there are different rules around those types of accounts, and each account is slightly different.
And so there is actually a physical strategy.
Physical strategy um, that you need to have to withdraw those funds.
So if you are approaching retirement age, and you have retirement accounts, you need to work with an advisor to develop the strategy for removing those funds from those accounts.
And again, it really depends on the types of accounts that you have.
And something I think that financial advisors need to do a better job of is explaining the strategy for removing funds from those accounts based on your goals and what you want to happen during your sunset years.
What are your plans for long-term care?
Long term care is one of the biggest concerns that farmers and ranchers have.
And there are 3 ways that we can pay for long-term care.
The 1st way is we can qualify for Medicaid.
Medicaid is different than Medicare.
Medicaid is the poverty program for low income people to receive, um, medical support, which will cover or can cover long-term care.
However, There's a 5 year look back period on Medicaid, and it limits the number of assets that you can have control of in order to be able to qualify for it.
So in other words, enabled in order to be able to qualify for Medicaid, we are basically going to push you below the poverty line.
In a strategic manner, so that you qualify for the program and we have to do that at least at least 5 years before you enter the long term care.
And I will tell you before you decide that that's the path that you want to take.
You need to go visit, the long-term care facilities in your community, and look at the Medicaid available rooms.
I promise you, there are very limited options in our rural communities, and you probably aren't going to like those options.
The other thing is that currently, because of the limited options, often, you will have to travel to find a Medicaid eligible facility in rural Nebraska.
So, that was option number one is qualifying for Medicaid.
Option number 2 is having insurance or a long-term care rider that would be available to you.
So you either have purchased long-term care insurance, which is most affordable between the ages of 55 and 65 or you might have a life insurance policy or an annuity that has a long-term care writer attached to it.
Now, long term care insurance probably isn't as good as it used to be.
They obviously are having more folks inter long-term care as we watch baby boomers age. Into long-term care, and so, the options for long-term care insurance aren't as good as maybe as they were 10 or 20 years ago.
You need to read the fine print of your long-term care insurance policy and your long-term care writer to know exactly what type of coverage that you have.
[Brad Mills, Program Host]
A full series of podcasts on farm succession and transition are available at UNL Center for Ag Profitabilities website.
Just visit cap.unl.edu or download from Apple Podcasts or Spotify.
For Nebraska Extension Almanac.
I'm Brad Mills.
Nebraska Extension Almanac is a production of IANR Media and Nebraska Extension.
For more information on how your university is serving Nebraskans, go to extension.unl.edu.
Southern Rust and Other Current Corn Disease Report
Nebraska Extension plant pathologist Tamra Jackson-Ziems provides a detailed report on early corn disease issues in the state. She discusses southern rust and tar spot, and how to tell the difference.
View Transcript
[Brad Mills, Program Host]
Nebraska Extension Almanac.
On today's almanac, extension plant pathologist Tamra Jackson Zeems gives us an update on current disease issues with corn in Nebraska.
She says Southern Rust has been reported in the eastern half of the state, and it might not be as prevalent as last season, but it is still a concern for farmers to consider.
[Tamra Jackson-Ziems, Nebraska Extension Plant Pathologist]
In the last few days, we have confirmed southern rust again here in Nebraska, in at least a dozen different counties in the eastern half of the state.
And as you might think back, southern rust is not rare, it's not a surprise for us to see some southern rust.
And it's rarely as bad as what you might remember last year in 2025.
To put some of that in perspective, we've confirmed Southern Rust in the last 20 out of 21 years where, since I've been here in the state, in Nebraska right now, we're not seeing widespread southern rust.
It's still very patchy and seemingly not severe in any of these fields.
This is a warning for us to get out and tell us it's time to start scouting, more intensively, to monitor for this disease because our corn is still young enough that it could potentially be impacted.
We need to watch the weather conditions very closely because weather conditions, and some of the field conditions we have could help make disease worse, and that goes for not only southern rust, but also tar spot.
It doesn't mean that we need to treat automatically.
So keep in mind, if you've already made a fungicide application.
It's most likely that you won't need to do so again.
If you haven't and you're kind of waiting to see what happens, then you might want to be sure and scout, and also be mindful of several of the factors that impact southern risk development, and whether or not you are likely to get a return on the investment with a fungicide application.
For example, keep in mind, there are some high risk factors.
If your field is pivot irrigated, we're adding moisture to that canopy, it does increase the chance of more disease, whether that southern rust or tar spot.
Many of the fields now and keep in mind our conditions are quite different right now than what we've seen in the past.
Warmer temperatures will favor southern rust, the cooler temperatures, including nighttime temperatures could favor tar spot development, and we often see tar spot development increase at the end of the season.
If you're thinking about making a fungicide application.
Consider the stage of the crop.
Applications made between early tasseling and the milk stage or R3 have tended to be the ones that are the most effective at controlling disease as well as most likely to give you a return on the investment.
But it does, of course, depend on a lot of other factors.
If you'd like some guidance on what those factors are, I encourage you to visit the crop protection network, the new return on investment tool or ROI tool, check that out, and walk through those steps, and it'll help you determine whether or not you're likely to get a return on the investment and even can type in some of the products for comparison.
And if you're not sure which products might work the best for disease control, consider what you've got in your fields, and whether you've had a history yet of tar spot.
Uh, that one will overwinter, southern rust cannot overwinter from last year.
So it doesn't matter if you had southern rust last year or not.
In addition to irrigated fields, you might also consider any fields that were planted late or had to be replanted, so they're much further behind in their development.
Those are more likely to be impacted if diseases begin to develop more strongly as we approach the end of the season.
If you want more information on these or other diseases, check out cropwatch.unl.edu or the crop protection network, where you can also compare the disease efficacy ratings for the fungicides, and those data are from the land great universities across the country.
And so if you need more information, or if you need help identifying a disease on the sample, please reach out to us in Nebraska extension, or bring a sample to the UNL Plant and Pest Diagnostic Clinic, or check in with your local county extension professionals.
[Brad Mills, Program Host]
For Nebraska Extension Almanac.
I'm Brad Mills.
Nebraska Extension Almanac is a production of IANR Media and Nebraska Extension.
For more information on how your university is serving Nebraskans, go to extension.unl.edu.