Conferences
Mitigating Farm Succession Planning Risk
Mallie Medlock, Adam Kantrovich, Anastasia Thayer, and Nathan Smith
Summary
The average age of the U.S. farmer is 58, which is close to an age for retirement age (USDA Census of Agriculture, 2022). Given that implementation of succession plans can take years, farmers should prioritize developing and revising their 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 changes their financial risk and interest rates on debt. As land values continue to increase, they may eventually exceed the lifetime gift and estate tax exclusion limitations. The federal estate tax exclusion recently increased, but could be decreased by congress in the future to help 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 impacts of potential policy changes on farm estate tax liability. This data does not capture the full value of the estate owned by an operator, which could make it more vulnerable to changes in the estate and gift tax policy. Extension should be prepared to provide assistance and or resources to promote the idea of an adaptable, succession plan. 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 |