Lack of Long-Term Planning & Succession Planning Presents Challenges for Farmers (And Most of Us)
It’s 2020 and while America is relying more than ever on our agricultural businesses to meet the demand for food, pricing of commodities and economic uncertainty make it difficult for these businesses and families to feel secure.
While we can’t change the economy, our firm, Harris-Pero & Botelho, PLLC, is happy to assist agricultural businesses and owners of agricultural land to feel more secure with their legal futures. A 2020 Survey from American Farmland Trust identified the “need for succession planning among aging Non-Operator Landowners” as one of the five key actions to address the problem that 40% of farmland in the United States is rented and thus may not be secured for future use as farmland without succession planning and conversation efforts.
Succession planning for landowners can mean making sure land remains available and affordable for the next generation or to transition to Farm Operator Ownership.
Another American Farmland Trust survey in 2016 identified the “Lack of Long-Term Planning for Farm Transfers” as one of the greatest challenges for farmland access and transfer. These types of planning -Succession planning and long-term planning -can involve many types of planning –for you, your family, your business, your assets, and your land.
This planning can be further complicated by land owning or non-landowning farm business and personal relationships.
Among the top five resources recommended by American Farmland Trust for farm families is: a shared list of technical experts and funding to help farmers hire technical experts. These technical advisors could be a small or large team but should always include a trusted attorney, preferably experienced with farm transitions and estate planning for farmers and/or landowners. Harris-Pero & Botelho, PLLC has experience working with trusted advisors including but not limited to American Farmland Trust, FarmNet, Farm Credit East, Hudson Valley Agricultural Development Corporation, Agricultural Stewardship Association, and Saratoga Plan.
For agricultural clients, our firm has been able to utilize connections with organizations that serve farmers to help cover some client costs under certain circumstances.
For more information on how Harris-Pero & Botelho, PLLC can help address your long-term planning and succession planning needs, please contact us for an initial phone consultation. For more information on the American Farmland Trust 2016 Survey visit: https://www.farmland.org/blog/survey-says-more-resources-are-needed-to-help-a-new-generation-of-new-york-farmers
For more information on the American Farmland Trust National Report on Non-Operator Landowners: https://farmland.org/american-farmland-trust-releases-first-ever-national-report-on-non-operator-landowners/