Next in Line: Exploring Owner, Business, and Family Characteristics and Farm Succession Planning

The growing average age of the American farmer raises concerns about who will be involved in the future agricultural economy. Efficient succession in family farms keeps farm values high, and farms that plan for succession have an incentive to invest more resources into the farm. Knowing what factors on family farms are common when succession occurs could help encourage earlier succession planning. The research questions were: “Are family, business, and owner characteristics significantly related to the presence of a farm succession plan on farms in the Midwest?” and “Are family, business, and owner characteristics significantly related to principal operators’ preference to keep the farm in their family in the Midwest?” Data was collected through a survey funded through the USDA NIFA Capacity Building Grant for Non-Land Grant Colleges of Agriculture, and probit models were used to measure predicted probabilities. Significant variables included the age of the principal operator, education, legal structure, and how business goals are discussed. These results may indicate what estate planners and can prioritize when discussing farm estates with farm owners to help current and future farmers maintain their operations.