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Planning for Intergenerational Transfers of Family Farm Businesses: Consideration of FSA Payment Limit Eligibility After the 2008 Farm Bill

Alan Miller

Summary

For many Indiana farmers, who produce grain and soybeans, payment limit eligibility requirements under Farm Service Agency rules are oftentimes a consideration when planning for intergenerational transfers of the family farm business. Those requirements were changed by the 2008 Farm Bill and subsequent regulatory actions. A reference paper on this topic was developed for use with the 30th annual Farming Together Workshop at Purdue University, which was conducted in January 2010. Participants in the workshop are always provided with a binder of reference materials and this paper was an addition to the usual items in the binder. The Farming Together Workshop focuses on helping farm families start the process of bring a son, daughter or new owner-manager into the family business. The reference entitled "Farm Business Restructuring in Light of FSA Payment Limit Eligibility Rules in the 2008 Farm Bill" briefly discusses selected rule changes embodied in FSA Handbook 4-PL and FSA notices. It provides suggestions for how to avoid running afoul of those rules when restructuring to accomplish business purposes related to farm estate and succession planning. The presentation provides context for the reference paper by means of a brief discussion of the Farming Together Workshop. In particular, a case study approach used during the Farming Together Workshop to illustrate key ideas dealing with asset transfer and farm entity selection is highlighted.

Details

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