Conferences
Farm and Ranch Transition from the Perspective of Non-Family Professionals
Jeffrey E. Tranel and John P. Hewlett
Summary
Colorado is an agriculturally diverse state. There were 38,893 farms and ranches encompassing 31.82 million acres in 2017 (CDA, 2022). These farms and ranches annually contribute more than $47 billion from the sale of crops, livestock, and livestock-related products. Additionally, the estimated market value of the land and buildings per farm was $1,315,440, an increase of $423,270 from 2012 (NASS, 2017).
Although a great deal is known about agriculture’s contribution to the economy, much less is known about the changing makeup of farm and ranch operators. To gain a better understanding of farm and ranch owners and operators, Colorado State University, in cooperation with the Colorado Department of Agriculture, conducted a multi-year, online survey of Colorado’s farm and ranch families in 2022 and 2024. The surveys aimed to discover the perspectives of the retiring and successor generations regarding estate and succession planning. The target audiences for the survey were members of the retiring generation, family successors, non-family individuals who could take over the farm or ranch business, and observers.
Observers are non-family professionals who work with and observe farm and ranch families as they struggle with estate and succession planning. These observers include Extension professionals, agricultural lenders, accountants, attorneys, and NRCS and FSA professionals.
The survey was completed by 30 observers from throughout Colorado. They reported their top activities related to estate and succession planning were connecting farm and ranch families with skilled professionals, organizing group educational events, and distributing written resources. Many of the observers also reported that they had analyzed the finances of farm and ranch families, while a few indicated that they had facilitated family interactions.
A vast majority of observers indicated that “financial issues” were the number one challenge for farm and ranch families as they considered developing estate and succession plans. Financial issues include the business is not profitable, the business will not generate sufficient income to meet all financial needs, and assets will need to be sold to pay for retirement and/or long-term care.
Observers further reported that (1) many farm and ranch families have no heirs willing and/or able to take over the family business, (2) members of the older generation struggle to view themselves as separate from the business, and (3) family conflict is causing many farm and ranch families to be without succession plans. Data collected during on-site educational programs throughout Colorado suggest that family conflict – or the perceived potential for family conflict – is preventing many retirees from wanting to discuss, develop, and implement estate plans and succession plans.
Observers were asked to identify from a list of nine possibilities the resources or strategies most helpful to farm and ranch families as they transition ownership of the assets and management to the next generation. The list item marked most (86%) by observers was “one-on-one coaching”. Two additional resources observers selected as helping farm and ranch families are “a greater awareness of professional help” and “onsite delivered group education”.
The people who work with and observe farm and ranch families in many capacities can provide useful insights into farm/ranch families as they struggle with estate and succession planning. Their comments have helped focus the delivery of on-site educational programs, the creation of additional written resources, and the procurement of administrative support and funding for continued one-on-one coaching and facilitation of family meetings.
References
Colorado Department of Agriculture (CDA). Data was retrieved from http://ag.colorado.gov on 2022 July 14.
United States Department of Agriculture, National Agricultural Statistics Service (NASS). 2017 U.S. Census of Agriculture.
United States Department of Agriculture, National Agricultural Statistics Service (NASS). 2022 U.S. Census of Agriculture.
Details
| Conference | 2025 Extension Risk Management Education National Conference |
| Presentation Type | Poster |