Conferences
Mitigating Farm Succession Planning Risk
Mallie Medlock, Anastasia Thayer, Adam Kantrovich, and Nathan Smith
Summary
The average age of the U.S. farmer is 58, just shy of the average retirement age of 64 (USDA Census of Agriculture, 2022). Given that implementation of succession plans can take many years, farmers should prioritize making and revising succession plans. Farmland values, often the highest value of farm assets, increased by 4.3% from 2024 to 2025 (USDA ERS Farmland Value Report, 2025). Higher land values should increase equity positions, which can reduce financial risk assessment and interest rates on debt. However, as land values continue to creep higher, they may exceed the lifetime gift and estate tax exclusion limitations. This can create complications in developing and implementing succession plans. The federal estate tax exclusion recently increased, but could be decreased to reduce the national debt. This unknown, combined with the likelihood of additional policy changes, heightens the urgency for farmers to develop adaptable succession plans.
This presentation employs a case farm to convey the urgency for adaptable succession planning. The case study uses USDA data to illustrate potential impacts of policy changes on farm estate tax liability. The results support Cooperative Extension services assisting farmers' development of adaptable succession plans for possible policy changes to mitigate potential future tax burdens, particularly if estate tax policy changes occur.
Details
| Conference | 2026 Extension Risk Management Education National Conference |
| Presentation Type | 30-Minute Concurrent |