Succession Planning

The World Needs More McArthurs

Mon, 06 Apr 2026 19:26:57 GMT

There’s a new song in country music that’s striking a chord with American farm families.

“McArthur,” sung by Hardy, Eric Church, Morgan Wallen and Tim McGraw, tells the story of a farm passed through four generations of the same family. Each verse introduces a new McArthur, carrying the land forward in his own time, shaped by different circumstances but tied to the same piece of ground.

That’s the same story many farmers are living today. And if you haven’t heard it yet, take a listen.

John McArthur

The song begins with John McArthur, a man working the land with a mule and a plow to provide for his family. As the first generation, John spends his days laying the foundation of the farm. He doesn’t know what the future holds for the operation, but he knows the work is worth it.

Every farm has this first generation: the person who gave the farm its start. Our grandparents or great-grandparents built the farm out of necessity without knowing what was ahead.

They planted the first crops, cleared the first fields and figured things out as they went. The decisions they made might not have seemed big at the time, but they laid the groundwork for the generations that followed. Even without a map, they knew the farm was something worth building and passing on.

Junior McArthur

Next comes Junior McArthur, the son who steps up to take over the farm but is sent off to war and never returns home.

He represents the second generation: the ones who take over a farm that’s already established but face challenges much different from what their parents experienced. Where John built the foundation, Junior inherits it and has to figure out how to keep it going.

Jones McArthur

After Junior comes Jones McArthur, the third generation to farm the same ground. By the time it’s his turn, the farm is running smoother, but the problems he’s dealing with aren’t the same ones his dad faced. He represents the generation trying to respect what was built while figuring out how to make it work in a more modern world.

In the song, Jones is also the one trying to pass along the lessons he learned growing up on the farm. He understands the value of the land and the work that went into building it, and he tries to teach his son the same thing.

But his son comes home from college seeing something different. Where Jones sees a family history, his son sees the dollar signs tied to the land.

Hunter McArthur

Finally, the song introduces Hunter McArthur. He’s the fourth generation, the one now standing in front of the decision many farms eventually face.

In the lyrics, Hunter is presented with a deal that would turn the farm into a neighborhood. It’s a tempting offer. After generations of hard work, the land is suddenly worth a lot of money.

Hunter represents the generation many farms are looking to today. The farm is established and the land has significant value, but the question becomes what to do with it next.

For many young farmers, this generation faces a different set of decisions from the ones before them. They have more opportunities off the farm and often more outside pressure pulling them in different directions. At the same time, they’re inheriting or buying into farms that have decades of work behind them.

A Familiar Tune

At the end of each generation’s part in the song, a line is sung: “When you pass on, what are you going to pass down?”

Farming has always been about passing things along. Each generation takes what the last one started and tries to make it better, but that chain only works if someone is willing to take the next link.

Today, the pressures on the next generation are real. Land values keep climbing, development keeps pushing farther into the countryside, and, for some families, the offer to sell the farm is hard to pass up. But most farms exist because someone in the previous generation chose to keep it going. They made improvements and worked through challenges with the idea that the farm would be there for the next generation to build on.

The world could use more farmers like the McArthurs. So, when it’s time to think about the next generation, ask yourself this: When you pass on, what are you going to pass down?

For more on succession planing, read:

Don’t Push Pause: How a Near-Fatal Accident Made Our Farm Succession Plan Crystal Clear

Thu, 05 Mar 2026 14:57:36 GMT

The last Friday in February was supposed to be a victory lap for a winter well-spent. It was a rare 65°F gift from the Illinois sky. The kind of afternoon where the sun feels like a promise of the spring to come.

My husband, Scott, and our youngest son, Jacob, spent the afternoon moving cattle between sites. It’s a project that usually takes three or four hours, and as any farmer knows, the cattle rarely cooperate. But Jacob did. He was right there, shoulder-to-shoulder with his dad. Our oldest son, Tyler, was home from college for the weekend, helping on the dairy with cattle work. It was one of those perfect, productive days where everyone was basking in the sunshine, the rhythm of the farm moving in a steady, beautiful cadence.

When the clock hit 5:00 p.m., Scott was ready to call it a day. Our local high school boys’ basketball team had made it to regionals, and we wanted to be there to cheer them on. We climbed into our SUV, chatting about the chores we’d finished and enjoying the lingering warmth of the day.

We were only a mile from our farm when the world shattered.

It happened in a blink. A truck made a mad dash across the four-lane highway, blindsiding us. There was no time to swerve, no time to brake. The police report would later confirm what we already knew: there was nothing we could have done.

Everyone tells you that life can change in a split second, but until you are sitting in the wreckage of mangled steel, surrounded by a dozen deployed airbags and the smell of gunpowder and dust, you don’t truly understand it. As we hit, I felt the impact vibrate through my very bones. I immediately started to pray. “We will be okay. God, make us okay.”

Through the haze of smoke and shock, Scott’s voice was the only thing I could hear. He was a trooper, his own safety forgotten.

“Karen, are you okay?” he asked, over and over.

I wanted to scream that I was fine. I wanted to tell him I was right there. But the shock was a physical weight. My mouth opened, a moan escaped, but the words were trapped behind a wall of trauma. I couldn’t speak.

The rest of the evening was a blur of sirens, flashing lights and the sterile white walls of the ER. The ambulance took me away; the tow truck took what was left of our vehicle. We spent the night under fluorescent lights, but we walked away. We got to go home.

In the days that followed, a deep, heavy appreciation for life settled over our house. I am thankful to be writing this story, though I would give anything to have never lived it. But the most emotional moment didn’t happen at the crash site; it happened at our farm.

(Karen Bohnert)

Our children asked the question every farm kid fears: “What would happen if both of you had passed?”

I cried. But for the first time, I could answer them with certainty. I told them about the will. I told them it was all outlined, all documented. It took me losing both of my parents and my brother — and writing about other families’ succession plans gone wrong for years — before we finally sat down and finalized our own a decade ago.

I think back to my own parents. It took them losing their own son — my brother — in an automobile accident to finally lean forward and be brave enough to talk about their own will. They put a plan together soon after and revised it a few times over the years. When the time came that we eventually lost our parents, my sisters and I were so incredibly thankful we did not have to worry about the logistics during our grief. My parents had it all documented. They gave us that peace of mind.

Farmers, I am pleading with you: Don’t push pause.

Don’t wait for a sunny day to have the conversation. Or a rain day. The highway doesn’t care about your schedule. Don’t wait because it’s an uncomfortable conversation; it will never get easier. Don’t wait because you aren’t sure what is “fair” or what is “best.”

Start the conversation today. Meet with a lawyer. Get it documented. You can always change and revise it — we already have once since we started.

I am so incredibly thankful that today, my kids are out in the dirt helping on the farm instead of sitting in a lawyer’s office reading a will. I am thankful they didn’t lose their parents on an Illinois highway. But mostly, I am thankful that if the worst had happened, they wouldn’t have been left in the dark.

Don’t wait. Your legacy is too important to leave to chance.

The Succession Gap: Why Two-Thirds of Farms Face an Uncertain Future

Tue, 03 Mar 2026 20:18:06 GMT

Farm Journal recently reported that 44 million acres of U.S. farmland are expected to change hands in the coming years - nearly 15% of American cropland by 2030.

That’s a staggering number. But what concerns me most isn’t just the acreage. It’s what that number represents: leadership transition, ownership transition and decision-making transition happening all at once across the country.

When I look at the accompanying data, I see both opportunity and vulnerability.

According to the Farm Journal Seed & Planting Survey and Consolidation Index Predictive Model Analysis, only 34% of growing operations have a formal succession plan. Among benchmark producers, that number drops to 29%. For operations identified as at-risk, just 21% have a documented succession plan in place.

Let that sink in.

Even among farms positioned for growth, two-thirds do not have a formal plan for how leadership and ownership will transition. And nearly four out of five at-risk farms are operating without one.

At the same time, consolidation risk is not limited to smaller operations. Farms under $250,000 in gross income show a 58% consolidation risk. Farms between $250,000 and $500,000 show 48%. But even operations in the $1 million to $2.5 million range carry a 32% risk. And those between $2.5 million and $10 million still sit in a baseline consolidation risk zone of roughly 27–30%.

In other words, income alone does not protect you.

Succession gaps, management transitions and strategic exits are driving consolidation regardless of size.

I’ve spent my career working with agricultural families navigating generational transition, and I can tell you this: consolidation rarely happens overnight. It happens when pressure meets unpreparedness. A health event. A lender conversation. A market downturn. A disagreement that was never resolved. A next generation that was never fully developed or clearly empowered to lead.

Agriculture has always been unpredictable. We all understand that. Weather changes. Markets move. Policies shift. But what feels different right now is how layered the uncertainty has become. Interest rates have restructured balance sheets. Input costs remain volatile. Capital demands continue to rise. Technology expectations are accelerating. And the average age of the American farmer keeps climbing.

Generational turnover is not something we can push off for “someday.” It is happening now.

So, here’s the question I would ask any farm leader reading this: If something unexpected happened tomorrow, would your operation be okay?

Would there be clarity about who makes decisions? Would ownership be clearly defined? Would compensation and reinvestment policies be understood? Would lenders feel confident in your continuity? Would your successors be prepared - not just present - to lead?

If you hesitate in answering that, you are not alone. But hesitation is a signal.

The data in the Farm Journal analysis tells an important story. Growing operations are more likely to try new technology. They are more likely to plan land investment. And they are more likely to have formal succession plans in place. That is not coincidence. It reflects intentional leadership.

The leaders that plan tend to think about the long term - not just the next growing season. They understand their profitability by enterprise. They are disciplined about capital allocation. They define leadership roles. They have hard conversations before circumstances force communication. They build clarity into the business so that transition strengthens it rather than destabilizes it.

Succession planning is often misunderstood.

It is not simply an estate planning document. It is not a will tucked in a drawer. It is not something you address only when someone retires. It is a business discipline.

It requires clarity about management transfer and ownership transfer - and those are not always the same thing. It requires fairness, which is not necessarily equality. It requires governance structure so family conversations don’t become a business crises. It requires intentional development of the next generation so leadership transition feels earned and prepared, not assumed.

And perhaps most importantly, it requires timing.

Consolidation favors clarity. It favors farms that reduce ambiguity before outside forces expose it. It favors operations that are structured - not just successful.

One of the most revealing pieces of the consolidation data is that even higher-income farms carry measurable risk. A $3 million or $5 million operation is not immune. Scale does not eliminate vulnerability if leadership transition is unclear or strategic direction is undefined.

The 44 million acres projected to change hands represent a defining moment for American agriculture. Some families will use this season to strengthen continuity and expand. Others will find themselves reacting - not because they lacked work ethic or competence, but because they delayed putting structure in place.

Planning does not eliminate uncertainty - but it does provide framework and stability.

It allows you to make proactive decisions rather than reactive ones. It gives lenders confidence. It gives the next generation clarity. It protects family relationships. And it preserves optionality.

If your farm is truly okay - strategically aligned, financially transparent, leadership-ready - then planning becomes a growth tool.

If it’s not, planning becomes urgent.

Either way, it matters.

Knowing the data should never create paralysis. Understanding your consolidation risk, your succession gaps and your financial position gives you something incredibly valuable: choice. When your business structure is clear and your succession plan is thoughtful but flexible, you can pivot as markets shift, opportunities emerge or circumstances change. You may not be able to eliminate uncertainty - but you can position yourself to move through it with confidence.

When Risk in a Crisis Becomes a Turning Point: Lessons from Top Producers

Wed, 25 Feb 2026 16:51:41 GMT

In a volatile agricultural landscape, risk is a constant. Weather, markets, input costs, succession issues, cyberthreats and pandemics all push farm families into uncomfortable decisions. During the “When Taking Risk in Times of Crisis Pays Off” panel at Top Producer Conference, six producers shared how they’ve navigated those moments — and what they’ve learned when the stakes were highest.

The panel, moderated by Rena Striegel, president of Transition Point Business Advisors in West Des Moines, Iowa, included: Edward and Rebecca Dalton, of Dalton Farms, Wakeman, Ohio; Chris Payne of 3B Hay & Straw, Ontario, Ore.; Wendy Alsum Dykstra and Heidi Alsum Randall of Alsum Farms and Produce, Friesland, Wis.; and Ron Rabou of Rabou Farms, Albin, Wyo.

Their stories spanned family tragedy, ransomware, COVID-19 disruptions, organic transitions and bold expansion moves — offering a candid look at what it really means to take risk in agriculture.

Here are five key takeaways from the conversation:

1. Crisis as a Catalyst, Not a Dead End

For several panelists, a crisis didn’t just test their operations; it forced a complete re-evaluation.

The Daltons describe being emotionally exhausted and financially stuck before a Top Producer event pushed them to question everything.

“We were floundering in agriculture,” Rebecca says. “We were not making any money, really. We were just doing it to do it and to continue that legacy. And we were to the point where, like, ‘why are we doing this?’ You know, we only have so many days here. We only have so much time here.”

After a series of family tragedies and persistent unprofitability, they made a bold move to transition about half their acres to organic production. The shift brought much-needed profitability and renewed purpose.

“The risk was I was going to quit farming,” Edward explains. “We needed something and a spark and to just want to farm again.”

In Wyoming, Rabou’s turning point came after the sudden death of his father and the unraveling of a complex family ranch structure. Walking away from a fifth-generation operation was emotionally painful, but necessary.

“We did a lot of soul searching, and I kind of came to the conclusion that the risk for me for not doing something was much greater than actually doing something,” he says.

Rabou and his wife started essentially from scratch, building an organic grain operation and a hunting enterprise, borrowing heavily despite having grown up in a “never borrow” mindset.

2. Numbers Matter — But They Aren’t Everything

A recurring theme was the importance of knowing your numbers while recognizing data alone cannot drive every decision.

“Knowing our numbers is what really helped us,” Edward explains. “If you know your own data front and back, when you really get into those tight situations that you need to be able to think and move… sometimes you just have to move, whether you want to or not.”

Recently, the Daltons made a bold move back to conventional production. The Daltons’ choice to step out of organic was a conscious decision to go against what the spreadsheet said, in favor of their family and team.

“Right now, when I’m hauling $12 beans instead of $40 beans, like we were for a few years, I’m not really happy with that decision, but it was too much time,” Edward explains. “We were losing time with our boys, and that ultimately is why we went back, even though we were making more money per acre.”

Rabou emphasizes having a clear philosophy about leverage: “I have no problem borrowing money on appreciating assets, but I have to be very careful about borrowing money on assets that depreciate.”

For him, land and infrastructure are long-game investments, and he admits he more often regrets the risks he didn’t take than the ones he did.

“I’ve never looked back and said I shouldn’t have made that investment,” he says. “But I have looked back a multitude of times and said, ‘Wow, I wish I would have made that investment.’”

3. Fear vs. Action: Moving When the Window Opens

Panelists agree that fear is often the biggest barrier to seizing opportunity — especially when decisions must be made quickly.

Oregon onion grower and packer Payne describes how, in the middle of a tense meeting, he and another young partner were essentially challenged to buy out older shareholders in an onion packing facility. They had seconds, not months, to commit.

His broader advice to producers now: “Don’t get caught up in fear. If you let fear dominate your thought processes, you’re never going to succeed.”

Preparation helps in those “15-second” decision moments, Payne adds. Continually learning, attending conferences and thinking through scenarios ahead of time gives you a framework so you’re not starting from zero when opportunity knocks.

Edward adds, “You absolutely know how it’ll go if you don’t try. If you’re not willing to try, it’s not going to work. You can’t move forward if you don’t do something or try.”

4. Cyberattacks, COVID-19 and the Power of Systems

For Alsum Farms & Produce crisis came in very modern forms: a ransomware attack and then the COVID-19 pandemic.

“At 3 a.m. one morning in October, I got a call from our IT manager that we had been hit with ransomware,” Wendy explains.

She explains recovery from the attack required all hands on deck, multiple external experts and months of work to protect traceability and keep product moving. The aftermath included layered backups, new server and email security, user training and an ongoing relationship with cybersecurity and insurance professionals.

Just months later, COVID-19 hit. With 90% to 95% of their business retail-focused, the Alsum team quickly formed a COVID-19 response group, redesigning workflows to keep employees safe and shelves stocked.

The sisters say one key result from COVID-19 was when another supplier faltered, the Alsums were ready to step up for a major retailer — turning crisis into opportunity.

5. Relationships as a Strategic Asset

Beyond capital and land, the panel underscores the value of relationships — with peers, competitors and buyers.

Edward, Payne and Rabou maintain a group text, often used when one of them is wrestling with a big decision.

“Have people in an industry that you can trust and communicate with,” Edward stresses. “There’s been days they’ve literally had to walk me off a ledge when I’m trying to figure out how to make a decision.”

In the potato and produce world, Heidi says, competitors often become collaborators when the chips are down.

“The nice thing about the potato industry and the produce industry in general that we’ve experienced is that it’s been very collaborative,” she explains.
Rabou adds he sometimes sells grain below top price to maintain long-term relationships and outlet security.

“Those relationships to me are more important than making the dollar in the moment,” he explains.

His broader warning to producers is to stop comparing your operation to your neighbors’.

“You really have to determine what works good for you as an individual, you as a couple, you as a business,” he stresses. “Stop paying attention to what everyone else is doing.”

The Bottom Line from Top Producers

Across all their stories, the panelists echoed a few core principles:

Know your numbers but also know your values.
Act in crisis — don’t let fear make the choice for you.
Be willing to pivot, even away from something profitable, if it no longer fits your life or strategy.
Invest in appreciating assets and in relationships, both of which can pay off long after the crisis has passed.

In short, risk in times of crisis isn’t just something to endure; handled intentionally, it can be the turning point that reshapes a farm for the better.

How Agriculture’s Next Generation of Innovators Can Build Financial Acumen Now

Wed, 10 Dec 2025 15:13:43 GMT

Beginning farmers and the next generation in agriculture face significant hurdles, including the high cost of capital and limited access to land. Technology is allowing the older generation to stay in business longer, too, creating a difficult environment to bring people into farming.

As senior vice president of business development at Farm Credit Services of America, Jason Edleman is focused on helping young producers and beginning farmers develop stronger financial skills so they can make better and more informed business decisions on the farm.

“One of the ways we are doing this is by setting up our lending officers to also serve as coaches for about four years with a group of about 50 to 60 customers,” Edleman explains. “From balance sheet training to cash flow lessons to understanding your family’s living expenses, their goal is to help customers through one-on-one coaching and classroom-style lessons to hone basic skill sets that will help them be financially responsible.”

He says it’s surprising how many people would guess they live for about $35,000 a year when in reality it’s likely closer to $120,000 a year.

“As lenders, we think about these things all the time,” Edleman says. “But for a beginning farmer or young producer, those skills take time to develop.”

Empowering Risk-Takers with Financial Understanding

He is excited about the next generation in agriculture as they bring a lot of different skill sets to the industry that are new and exciting. They’re also very creative in how they’re going to market, too.

“Their adaption to technology and how they learn and grasp information is so much different,” Edleman says. “I use the example of how my son (who is not a farmer) learns. He watches a 3-minute YouTube video, and then he goes and does it. His generation is not afraid to tackle stuff, but they just need some access points to learn.”

Farm Credit Services of America (FCS America) wants to help fill those learning gaps, he adds. FCS America is doing that through its Starting Gate program designed to empower and develop the future of agriculture by providing young and beginning farmers with personalized coaching in agricultural finance. Participants work with FCS America professionals to build skills in budgeting, financial planning and risk management, creating a strong foundation for their business goals.

(Farm Credit Services of America)

For more than 20 years, they have been hosting the Side X Side Conference for producers 35 years of age or under or farmers who have been farming less than 10 years. It features educational sessions, inspirational speakers and networking opportunities all geared to help producers better understand the financial side of the business.

“We recognize the challenges our producers are having and believe this program and hands-on coaching can have a generational impact,” Edleman says. “Years ago, we realized from a financial acumen standpoint, a majority of producers can’t put their balance sheets together on their own and don’t have a good understanding of how a cash flow can help them in their operation’s decisions.”

He admits farmers may be good at the “napkin math,” and usually have all the numbers in their head. However, this doesn’t always translate when they tell their story to a lender and may not fully encapsulate all of their expenses.

“The more successful farmers understand financials – cost production, cash flows, balance sheet trends and what it means to their income statement – the better decisions they can make about the risks they can take,” he adds.

One of the best parts of the events is the networking that takes place.

“The boards in the back of the room are a great tool to build relationships,” he explains. “We challenge producers to put things on the board they are looking for. Maybe it’s a connection point on how to sell something, or maybe they need hay. Ultimately, they end up sharing ideas and sharing numbers.”

Several peer-to-peer groups have formed because of these conferences and now regularly meet to share ideas, best practices and build relationships, Edleman says.

Navigating Income Diversification and Side Hustles

Whether the new generation wants to add a second business or not, most have to find a way to dive into other sources of income such as contract finishing, hunting, spraying or trucking businesses.

“We’re seeing about 44% of young or beginning farmers have a side job whereas a traditional farmer probably is only closer to 36%,” he notes.

As lenders, Edleman says their goal is to help producers. Close communication and a greater financial acumen help producers better prepare for the unknowns in farming.

“I think this young group really shines because they’re not afraid to try new things,” he adds. “From drone technology to how they use AI to make decisions, they’re grasping things more quickly. I think that’s been a good thing as it creates other sources of income that these operations can leverage as well.”

Early Engagement and Succession Planning

For the “coaches” at Farm Credit Services of America, the extra one-on-one time allows them to really get to know their clients and bring up hard topics of conversation like succession planning.

“Personally, I don’t think any of us want to work on estate planning and think about the inevitable,” he says. “We’re trying to engage conversation around the fact that life doesn’t always shake out like we think. The more we can prepare people to think about these tough topics earlier, the better. We can’t change the direction of what that looks like, but we can continue to influence communication.”

Although coaching young and beginning producers one-on-one is where Starting Gate financial officers spend more of their time, Edleman says many are also branching out to teach classes and present on financial topics at technical schools and land grant universities.

“We’re spending more time engaging future farmers earlier,” he says.

At one technical school in South Dakota, lenders do mock interviews with students. They aren’t interviews to practice landing a job, however. They are interviews to practice seeing your lender for the first time.

“Where are young producers at when mom and dad go to see the lender? They’re at home doing chores,” Edleman says. “Their professors and our coaches help them apply for their first loan or learn what to ask during an interview. It’s a simple thing, but it’s a huge thing when you think about where they’re at in their journey.”

One Farmer's Idea to Avoid Yellowstone Drama When Transferring the Family Farm

Fri, 21 Nov 2025 18:47:32 GMT

At 8 cents a pound, pigs weren’t worth much when Todd Wiley formed Interstate Swine LLC with his dad in 1998. Nobody wanted weaned pigs. Facilities quickly became available as people left the pork industry. With a sincere desire to make a living raising pigs on his family’s farm, Wiley stepped out in faith. Nearly 30 years later, this multi-generational farming endeavor in eastern Iowa has survived some of the toughest times and some of the best times.

Maybe that’s why Wiley has taken a unique approach to bringing the third generation back to the farm.

“There’s no doubt that family is important to Todd,” says Pat McGonegle, CEO of the Iowa Pork Producers Association. “He puts family first, and the farm is a part of that discussion. He manages his family members that are part of that farm in a real professional way, but also with an eye towards the legacy that he and Denise want to leave on their farm.”

Would This Be Good For My Kids?

Growing up, Wiley’s parents talked about succession planning often with their three sons. The concept of planning for the generational transfer of the family farm came naturally to Wiley.

“When we started Interstate Swine, we needed to hire employees,” he says. “One of the things I was conscientious about was making sure the employment opportunity within our business would be conducive to our children filling those roles.”

From the beginning, Wiley instituted health insurance plans, matching IRA funds, paid time off, paid vacation, and other benefits that employees would typically look for when securing a job.

“I constantly asked myself if this would this be good for my kids someday?” he says.

Wiley and his wife, Denise, have four kids: Drew, a Kansas State University animal science graduate and former K-State Football defensive tackle; Isaac, an Iowa State University agribusiness graduate now employed with Ever.Ag; Emma, owner of Auntie Em’s - Event Florist and attended Des Moines Area Community College; and Joshua, a junior at Iowa State University in animal science.

In 2017-2018, the Wileys doubled their sow farm to create more opportunities for the children to have a place on the family farm.

“It was a fairly tedious process – not only from a business standpoint, but about what the next generation was going to do,” he says. “They were all too young back then, and there was no way I could ask them for any sort of commitment to our business. But I did ask a lot of professionals. I remember asking our accountant specifically, ‘In your experience, what is the likelihood of a farm family having the next generation be involved, providing you have a viable business?’”

The accountant’s response was, “It’s pretty high.”

“Denise and I knew we needed to have some economies of scale,” Wiley explains. “There’s not much point in succession planning, if there’s nothing to succeed to or succeed with. We were mindful of that when we moved forward. Now, we have room for additional people, not only for labor, but also in management where we can utilize their skills.”

No Yellowstone Drama Here

As a family, it is easy to recognize each other’s strengths as well as quirks, he points out. But he wanted a better way to evaluate his children’s strengths and weaknesses, as well as interests, on the farm.

“I remember when a successful family in eastern Iowa, with a number of businesses, built a feed mill and elevator,” Wiley shares. “The father of this family passed away unexpectedly. Come to find out, nobody in the family had any interest in this feed mill and elevator, so they end up selling it.”

This hit Wiley hard. What would his kids say about where their farm was investing capital? That sparked the construction of a succession planning instrument for the Wiley family.

(Lori Hays)

“The first page of the instrument (an Excel document) started two years ago with a list of 35 jobs that need to be done on our farm,” Wiley says. “Most of them are pig related, but we do crop farm some. It was pretty much everything I was doing in a spreadsheet.”

Each of their children (and one daughter in-law at the time) was asked to rate those 35 jobs from one to five under this scenario: It’s 2033 and Todd and Denise are serving in an advisory role only. You choose to be an active employee of the family businesses. Please answer by circling the corresponding number that best describes your interest in the listed activity.

“It was interesting to see who had interest in what, but it also told us pretty clearly where we needed to go in the future if we wanted our children involved in our business,” Wiley says. “Initially, I think they saw it as a fun activity, just another of Dad’s crazy ideas. But I learned a lot.”

This past summer, the family completed the exercise again.

“I needed to see if the kids were drifting in their interest,” he says. “In one case, there was significant movement in what one of our kids wanted to do. It surprised me to be truthful about it. In the other three cases, they held true to what they thought two years previous. But bear in mind, our youngest was a freshman in college two years ago and a lot can change in college.”

Wiley emphasizes that nobody is required to come back and be involved in the operation. He says there are a million ways to make a living out there and he wants his kids to pursue their dreams. In the version his family filled out in the summer of 2025, he added a second page with 45 statements.

“If you’re going to work with people in a business and a family in any organization, even if you’re not related, you need to have some idea of where they’re coming from,” Wiley says. “On the second page of statements, they were asked to rank their level of agreement with the statement.”

For example, one of the statements was: No matter what I may think of a family member’s job performance, I’ll always have their back publicly.

“If you’ve ever watched Yellowstone, that show creeped me out,” Wiley says. “When I saw the family dynamic portrayed, it made me uncomfortable. We can have our disagreements. But, as a family, you better have each other’s backs out in the community, especially in the business we’re in.”

Getting Out and Getting In

This instrument has been helpful for the Wileys in many ways as they prepare to transfer more of the farm to their children.

“It sheds light on areas where their belief system parallels ours,” he says. “We have a definite place of emphasis now. Our children have a pig feeding business called Fourth Gen Hogs LLC, where they’re each 20% owners, Denise is a 10% owner, and I’m a 10% owner. It has been a great exercise in giving them the responsibility of ownership.”

He says the timing mirrors the situation he was in when Interstate Swine was formed.

“They got in about a year ago when it was pretty doom and gloom. We went to the bank with this idea, and they’re like, ‘You want to do what?’”

He believes this business venture will be the vehicle for he and his wife to exit pig ownership as their children get into ownership.

“Uncle Sam would have his way with us if we sold out all at once,” Wiley says. “But if we can gradually exit individual barns or individual parts of our production flow and have them enter into it, that’s a fairly nice segue for us to get out and them to get in.”

Wiley shares more about his mini adventure raising rabbits, opportunities for talented young people back on the farm and the message he hopes pork producers hear right now and more on The PORK Podcast. You can watch it here on YouTube or listen anywhere podcasts are found.

Watch more episodes here.

Oikonomia on the Farm: Succession Planning is About More Than Wealth

Thu, 20 Nov 2025 14:57:20 GMT

Succession planning is often treated as a legal or financial exercise — a “simple” matter of wills, taxes and transfer dates. Yet for family-owned farms and agribusinesses, it’s something deeper: the deliberate handoff of a way of life.

The ancient Greeks had a word for this kind of management, oikonomia, from which we get the term economy. Understanding what they meant by it can reorient how families think about preparing the next generation.

In classical thought, oikonomia referred to the management of the oikos, the household or estate, but it was never only about efficiency or profit. The oikonomos, or household steward, was responsible for using resources wisely so the entire household could live well and endure long into the future.

Ancient philosophers viewed resources as abundant, not scarce, so economic action was judged not by the accumulation of wealth but by whether it enabled and served a praiseworthy end. Specifically, the flourishing of the family, the land and the community.

Perspective for the Present

That older vision aligns closely with what succession planning should be for agriculture. The task is not just to pass on land and assets, but to ensure the continuity of stewardship, the ethical responsibility to care for what has been entrusted.

From an oikonomia perspective, the senior generation’s goal is to prepare successors capable of managing abundance with restraint, gratitude and wisdom. This calls attention to the education of character. The next generation must learn more than production and finance; they must learn judgment, the ability to distinguish needs from wants and to act for the common good. Mentorship, gradual transfer of responsibility, and open discussion of values all form part of this ethical training.

Perhaps most importantly, oikonomia reminds us that a farm is both a business and a household. Financial plans that ignore family dynamics or the moral vision of the enterprise risk undermining the very legacy they seek to protect.

Succession planning works best when it integrates three elements at once: the technical (who owns and manages what), the relational (how the family communicates and cooperates) and the moral (why the farm exists and whom it serves).

In that light, passing the farm to the next generation becomes not just a transaction but an act of stewardship — a modern form of oikonomia. The question is no longer only how do we divide the assets but how do we preserve the household, the land and the purpose they represent for future generations?

Plan for Now, Adjust Later: Create Your Estate Plan Before It's Too Late

Wed, 22 Oct 2025 17:05:37 GMT

Nobody wants to think about death, but it’s something Polly Dobbs, an estate planning and wealth transfer attorney with Dobbs Legal Group LLC, thinks about every day.

“When I was a new lawyer, I was so nervous to say dead or death,” Dobbs recalls. “I was in a meeting with a partner and his client once when I stumbled over something and said, ‘in the unfortunate event you should pass away.’ After that meeting, the partner yanked me out in the hallway and said, ‘Stop stuttering. Just say when you die. It’s not if, it’s when.’”

She’s been dealing in death ever since, but she says that perspective allows her to serve her clients better.

“What if you got hit by a bus tomorrow?” Dobbs asks. “You should have a plan in place that fits today’s circumstances. If your grandson is playing with John Deere toys in the sandbox, let’s not create a succession plan that hinges on that grandson coming back to farm. Let’s have a plan in place that fits right now, in case you die tomorrow. If you don’t die and you get to see how those grandkids turn out and which direction their lives take, you can adjust that plan.”

People often think they can figure out their estate plan later – when they are older, richer, sicker, free from debt and the list goes on.

“Too often, people don’t have a plan, and they end up dying before they’ve got it just how they want it,” Dobbs says. “Have something that fits for today and dust it off as needed.”

What Should Drive Decisions?

When it comes to estate planning, Dobbs says there is no cookie-cutter-approach.

“You can’t copy what your neighbor did,” she says. “It has to be customized for your family, your facts, your assets, your goals, your family members and your farm.”

She often challenges farmers with tough questions like should your off-farm kids get bought out?

“Should they get bought out of equipment, improvements, grain bins, shops, shed and all of the silver things that we build on top of gravel lots to use in production agriculture?” she asks. “Do you feel like your off-farm heirs are entitled to a share of these operating assets? If so, fine. If not, that’s OK, too.”

Part of what Dobbs does is give permission to people to treat their children differently and to define their children’s inheritance.

“It’s not necessarily one quick check after an auction after your funeral,” she points out. “It is absolutely fine to treat your children differently. I preach over and over again that fair does not mean equal. There is no law that says the columns for your children must tally to the penny and be exactly equal with the assets they receive at your death. You’re aiming for a fair balance, and you define what is fair.”

Ultimately, she says, it comes down to peace of mind when you lay your head on the pillow. Do you have a fair plan in place?

Talk Now, Don’t Wait

Communicating the estate plan during your lifetime is very important, but it’s often the step that farmers fail to complete. She says transparency helps avoid entitlement.

“When someone thinks they’re going to get a certain amount of the value of your assets, they’re already calculating it and counting on it,” she says. “After your death, if the plan is different, that’s when the entitlement rears its head.”

She emphasizes the details must be defined by the farmer.

“A lot of my clients would rather put their head down and have the plan unveiled after death,” Dobbs says. “I understand that’s challenging. But it’s far better to have transparency and throw everything out on the conference room table so you can shine a light on it and talk about it.”

In addition to getting all the family in the room, Dobbs believes there should be more than one adviser at the table at a time.

“This is how you get the best plan, and you will always have a better plan if your advisers speak to each other,” she adds. “There is this falsehood out there that you need to stop your lawyer from talking to your accountant because that means they’re both charging you at the same time. I promise it will always be cheaper in the end, and a better plan, if your advisers talk to each other.”

Touchy Subjects

One of the sensitive subjects many farmers are dealing with today is the issue of sweat equity and treating it like deferred compensation, she says.

“When we have a successor coming in, depending on how long that successor has been working side by side with the senior generation, they’ve earned something,” Dobbs says. “We’re not talking about giving them a handout. If we give them a discounted price, or we give them assets off the top as a part of the succession plan or part of the estate plan, that’s not a handout.”

Deferred compensation says that if a young person had gone to work in a factory right out of school, they would be earning and investing in a 401K or perhaps stock compensation. They probably would have health insurance and HSA accounts that most family farms just don’t have, she explains.

“When the senior generation is putting together their succession and estate plan, consider the benefits the successor gave up by not working off farm,” she says. “Having some sort of benefit, discounts, family-friendly terms in the succession plan and in the estate plan should be considered deferred compensation.”

Read More:
Tax Acts and Estate Plans: What You Need to Know About the Changes for 2026

Tax Acts and Estate Plans: What You Need to Know About the Changes for 2026

Mon, 20 Oct 2025 14:00:40 GMT

Taxes don’t destroy family farms – people do, says Polly Dobbs, an estate planning and wealth transfer specialist.

“It’s not Uncle Sam – it’s your third wife and your kids from your first two wives, it’s your kids in the city versus your kids on the farm, and it’s ultimately your failure to plan for all that because you don’t want to hurt somebody’s feelings,” she explains. “It’s very lazy to say that taxes ruin the farm. That’s rarely the case.”

All the details matter, says Dobbs with Dobbs Legal Group LLC. She doesn’t believe in sugarcoating the hard truth. That’s why she’s devoted her career to helping farm families navigate estate planning and wealth transfer.

A “Permanent” Estate Tax

On July 4, President Donald Trump signed into effect the One Big Beautiful Bill, which has a significant effect on federal taxes, credits and deductions.

When it comes to gift and estate taxes, Dobbs points out a big change under the Internal Revenue Services (IRS) section.

“The new exemption as of Jan. 1, 2026, will be $15 million per person, or $30 million for a married couple,” she said at the Keystone Cooperatives Co-op Classic in Valparaiso, Ind. “It is one exemption. You either use it during your lifetime to make gifts, or you have it available at death to shield inheritances. You don’t get two.”

This is an increase from $13,990,000 per person in 2025, and a welcome relief from the anticipated “drop off the cliff to around $7 million per person that was looming,” Dobbs adds.

Unlike the Tax Cuts and Jobs Act from 2017, she says the exemption is considered permanent in that it doesn’t have a “self-destruct, sunset date.” However, she warns farmers not to get too excited about the “permanent tax act” because any future Congress and President can change any law on the books.

The new exemption will be indexed to inflation, she adds, and with adjustments made Jan. 1 every year beginning in 2027. IRS recently announced the tax year 2026 annual inflation adjustments for more than 60 tax provisions, including the income tax rate schedules and other tax changes. The annual gift tax exclusion will remain $19,000 in 2026, unchanged from 2025, which is the amount each donor can give to each recipient, without tapping into his or her big exemption.

“During the fourth quarter of every year, we’ll get inflation numbers, and we will know what the new exemption is going to be the following January,” Dobbs says. “It is nice to know there’s no ticking clock on this tax act. We can stop worrying about this dreaded sunset that was to happen at the end of 2025. The fact they got ahead of this and did it in July of 2025 is a gift.”

Dobbs has been working in gift and estate tax laws for 25 years and says there has never once been a permanent tax act.

“This is important information,” she says. “But that’s the caboose. It is not the engine that should be driving the decision making about the farm’s succession and estate planning. Family goals come first.”

Overcome the No. 1 Challenge in Passing Down Your Family Farm

Mon, 30 Jun 2025 18:28:52 GMT

Between now and 2048, about $124 trillion is expected to exchange hands from older to younger generations in the U.S., according to Cerulli Associates, a Boston-based market research firm.

For perspective, that dollar amount is approximately five times the size of the 2023 U.S. Gross Domestic Product (GDP), which totaled $27.72 trillion.

How will farmers fit into what many people are calling the “Great Wealth Exchange” over the next two decades? Much of it is specific to land, according to the American Farmland Trust (AFT). It predicts 300 million acres of U.S. agricultural land will change hands in the next 20 years.

Based on $5,000 an acre for farm ground, Paul Neiffer, the Farm CPA, estimates that would be a transfer of between $1.5 trillion and $2 trillion in land from older farmers to younger generations.

“If you throw in rangeland, that’s another trillion, so $3 to $4 trillion at most is where I think we’re at,” Neiffer says.

The Reason Succession Often Fails

A common issue is that while 69% of farmers plan to transfer their operation to a younger family member, only 23% have a plan , according to AgAmerica Lending LLC.

But the No. 1 issue that trips up people in the succession planning process is most people – farmers included – focus more on the mechanics involved in transferring assets than on keeping their family relationships intact.

That’s according to Amy Castoro, CEO and president of The Williams Group, a family coaching and consulting organization. Her firm does relationship planning to help family members make sure they’re still speaking to each other after the wealth transfers.

Many times, she says, the friction in the transfer of wealth has little to do with money and material goods and a whole lot more to do with whether the family members involved felt loved.

A Formula For Success

The Williams Group did a 20-year field study and from that developed a formula for how people need to focus their time and energy in the succession process.

The company recommends spending:
60% of your time on building family trust and developing good communication practices;

25% preparing your heirs to take over the operation, laying the business and fiscal groundwork for the farm to continue under their leadership;

10% of your time getting on the same page about your family’s values and having a family mission;

5% of your time on the estate planning mechanics, the nuts and bolts of how the assets will transfer.

In addition, The Williams Group advises that you work with your heirs to:

Strike a balance between control and collaboration.
Embrace the next generation’s perspectives.
Bolster intergenerational solidarity.
Embed high-trust behaviors.
Co-design standards for readiness.

Start The Plan Sooner, Not Later

If you want to see your farm succeed with the next generation of family members, make sure you have the right structure in place – and set it up sooner than later. Don’t put it off, Neiffer advises.

Once you have a plan in place, you have a tool you can modify to fit what your family and farm need over time.

“Having a plan in place can help alleviate stress, even if things change down the road,” Neiffer says. “Keep in mind that farming is a dynamic business and your plan needs to be, too.”

Your next read: Big Questions Remain For Next Gen Farmers

From College to Corn Fields: Second-Generation Ohio Farmer's Journey Starts Now

Fri, 13 Jun 2025 16:24:20 GMT

There are two schools of thought when it comes to onboarding rookies in professional sports: You toss them right into the deep end and see if they can swim, or you ease them in slowly, letting them watch and learn how to be a pro from the veterans in the locker room. Both approaches have their pros and cons, and there’s no firm consensus on which method results in consistent long-term success.

Ohio second-generation farmer Paige Pence will likely be brought along gently as she gains experience and learns the intricacies of the family cropping business. Pence’s parents, Brent and Christine, are in fine shape and still have that burning, fiery passion when it comes to farming the 4,500 acres they have pieced together over the first two decades of their only daughter’s life.

“I don’t think they are planning on retiring or handing this off to me anytime soon,” laughs Pence, 22, having just packed up her college dorm room and trekked home to the New Carlisle, Ohio, farmhouse she grew up in. She graduated this spring from Western Illinois University with a bachelor’s degree in ag science and a minor in animal science.

(2Ps Studios, Shayna Perez)

Meeting with the family, you can tell right from the jump Brent and Christine are thrilled to get their daughter back. They’ve been managing things as a partnership since young Brent secured his initial 123 acres of rented ground back in the early ‘90s. He did not come from a farming background, but Christine grew up on a dairy farm, so agriculture was not a completely foreign concept. Through sheer perseverance and with some help from friends, neighbors and family, they’ve built an impressive operation to one day pass down to their only child.

Up to the Challenge
That’s a fact that surely makes Brent’s handful of farming mentors from over the years as proud as peacocks.

“She’s going to get a whole new learning experience this summer,” Brent says. “We’re going to set her loose. After all the traveling that my wife and I have done for her livestock shows, we’re going to get a little bit back from her.”

The plan moving forward is to have Paige get her feet wet running the farm’s fleet of equipment and pitching in wherever she can leave her mark. She’ll be shouldering a healthy load of farm duties, with her parents guiding her along the way. She’s more than up to the task.

(2Ps Studios, Shayna Perez)

“During my senior year it started to hit me that I was ready to go home, because when you’re not here on the farm, you’re not able to be as present,” she says. “I was ready to come home and start making the changes that were going to help our family.”

The Pences have yet to sit down at the kitchen table and talk about those changes, like profit splits or how many acres Paige will eventually take over and manage on her own. But that doesn’t mean she’ll be tethered to their hips all summer, either. That conversation will come in due time, but for now it’s all about getting her up and running and feeling comfortable as the second generation on the farm.

“I definitely could see them giving me some fields to manage by myself, because I think they know I’m independent, and I’m always looking for ways to improve and learn,” Paige says. “So obviously, with a little bit of help, I could see them giving me more independence, and I’m on the side of doing that, too.”

(Matthew J. Grassi)

Carving Out a Niche
Aside from her day-to-day duties of helping plant, fertilize, spray and harvest the family’s crops, the recent college graduate hopes her parents will lean on her social media skills. She’s built a strong following online and she clearly has a knack for leveraging those connections and eyeballs to grow her custom graphic design side hustle. Now she can use that experience to help develop the farm’s digital presence, which has become crucial during this day and age.

No matter how she is “set loose on the farm,” in her father’s words, this has always been the plan.

“I have always grown up around farming, so I don’t see myself ever leaving,” Paige says. “There are always different things that need to be done, and aside from showing [livestock] over the last decade, I’ve always been around helping out. I don’t see myself moving anywhere else. I feel like everything I need is right here.”

(2Ps Studios, Shayna Perez)

Your Next Read: Farming Builds A Bridge Between Kentucky Family’s Past, Present And Future

5 Options to Consider During Farmland Transitions

Thu, 12 Jun 2025 16:30:00 GMT

Transitions are hard. It doesn’t matter what the transition involves, the nature of moving from one thing to the next is complicated. Farmland may be one of the toughest, says Steve Bohr of Farm Financial Strategies in Lisbon, Iowa.

“Farmers often believe that what differentiates him or her is their ability to own the land,” Bohr explains. “And by God, you’re not taking it away from them. A lot of times, land ownership doesn’t transfer until death, and I’m OK with that. But we’ve got to drill down and figure out how that land is going to transition from one generation to the next.”

Over the years, he’s discovered there are three fundamental areas of concern in an estate and farm transition plan that each family should independently address — cost of administration, creditor protection, and transition plans for land and operating assets.

He shares five options to consider for the transition of land assets.

1. Give the land to the farmer.
The first option is to get the land transitioned to those who are farming it or have an affinity to own it, Bohr says. Each generation cannot afford to take a step back in equity and expect to compete in today’s marketplace.

“The clear problem with that is, how are we fair to the ones who aren’t interested in farming? Every family is different,” he says.

If your family is expecting to farm the same (or more) acres with a land base that has been divided across siblings, each generation will be in a weaker position to complete. How many times will your family have to pay for the same land? Which generation will eventually lose it due to no fault of their own (other than choosing to carry on the legacy)?

2. Divide the land equally.
An undivided ownership in real estate can cause great anxiety for the owners of the land who want to farm it or who want to continue to own it, he explains. There is a greater chance of peace if you divide the land, but also a greater chance it gets away from the family.

“Most people believe this is the answer,” Bohr says. “I don’t believe that, because the problem with dividing the land is that it’s a recipe for the land to get away from us. Whether it’s divorce, bankruptcy or poor planning.”

At some point in time, the more people involved, and the more independence those people have, the land’s going to get away from you. If it doesn’t, then it has to be divided again at the next generation. By the time you divide a farm two generations, the grandkids don’t have enough to be able to farm.

“We are dividing ourselves right out of the plat book,” Bohr says.

3. Deed land into a family trust.
Leaving the land in trust after death may be a wise option for families who cannot afford to get the land to one heir and who do not want to divide their land. There are solid reasons to leave the land in trust for management, including if one or more children have marital, money or addiction issues or if one or more children are independently wealthy.

Oftentimes, leaving land in trust gives a false sense of security that may be deferring the problem to the future.

“When we leave it in trust, we’re asking for big problems. Whenever that land comes out of trust, it can be very inflexible,” Bohr says.

4. Create a family land entity.
A land entity like a Limited Liability Company (LLC) or Family Limited Partnership (FLP) has become popular for a family where the first three options do not fit.

“I call this the boomerang plan because the rules in the operating agreement of the entity always bring the land back to the family,” he says.

Those entities will have rules, and within the entities, those rules will talk about lease options and purchase options at family pricing and terms, whatever that looks like. A vast majority of them are special use paid over a 30 -year contract so they can guarantee opportunity and affordability for family members.

5. Develop a hybrid plan.
There is not one plan that fits all families. That’s why a combination of multiple options sometimes works best for most families. A hybrid plan gives everybody an opportunity.

“Right now in succession planning, I think we have to give a huge amount of understanding to what will or won’t cash flow,” Bohr says. “What are the tax ramifications? What is the timing of the transition? And are we going to give an adequate opportunity to those who are going to be that next generation in our communities, paying taxes, going to churches, going to schools?”

Your Next Read: How an Iowa Family is Passing on the Farm from One Generation to the Next

Farming Builds A Bridge Between Kentucky Family’s Past, Present And Future

Thu, 12 Jun 2025 13:21:55 GMT

The fertile silt loam soils of LaRue County, Ky., serve as a bridge uniting the nine generations of Caleb Ragland’s farming family. This is a connection he hopes will extend in the years to include his three sons.

“My wife, Leanne, and I grow soybeans, corn, winter wheat and boys; they’re our most important crop,” Ragland says of his family and their 4,000-plus-acre grain operation that is based out of central Kentucky, near Magnolia.

If you have a conversation with the 38-year-old Ragland, you’ll find he doesn’t often stray far from the topics of farming and family, and the lines between the two blur as he looks out a farm office window and talks.

“I can look out across the field here, about a half mile, and see generations of my family buried over here on the hill,” Ragland says. “Our family settled here in 1808. Abraham Lincoln’s dad deeded land in this county the same month that our family did.”

Lincoln’s family left Kentucky for southern Indiana in 1816. Ragland’s family stayed put. “We’ve got deep roots here,” he says.

(American Soybean Association)

Natural Communicator
Ragland is hopeful his boys, ages 15, 13 and 10, will have the opportunity to be the 10th generation to farm the family’s ground. But he is concerned the mounting fallout from trade disruptions, high input costs and low commodity prices could deliver a death blow to that dream.

Those concerns are weighing on Ragland on an April morning as he sits planted in his farm office, juggling a variety of media interviews in his official capacity as president of the American Soybean Association (ASA). Though he would prefer to be on a tractor in the field or working around the farm, Ragland has done dozens of interviews in recent years with the media, most of whom are rooted in agriculture. But the general press has also come calling — from CNN and Fox News to National Public Radio — as they recognize the practical farming knowledge and savvy agricultural policy insights he can provide.

These days, Ragland has been addressing various topics ranging from trade dynamics to how rainfall is affecting the farmers who are located across parts of the Southeast. He reflects with dismay on a recent vote by the U.S. International Trade Commission that went in favor of imposing duties on imports of 2,4-D from China and India.

“That didn’t go our way,” Ragland says. “It’s a disappointing decision. It’s one that will probably double the cost of 2,4-D for farmers, and I’m not just taking a guess at that. Prices here locally have been going up over the past 12 months.”

(Rhonda Brooks)

Signs Of The Times
USDA reports net cash farm income is projected to increase to $193.7 billion in 2025, which would be up 21.7% year-over-year, thanks to federal aid — not because of better prices or increased commodity sales.

“Right now, it’s painful out here, and things don’t look good. That’s just being honest,” Ragland says. “With high input prices, unpredictable weather events and mounting uncertainty in trade markets, our farm is likely dealing with a $150,000 net loss for the 2025 crop.”

Ragland describes his farm’s budgets for the 2025 crops as bloody.

“When I ran budgets, full-season soybeans on my farm are in the red,” he says. “We raise a lot of winter wheat and double-crop soybeans, and that acreage with APH (actual production history) yields to break even shows corn is only slightly profitable.

“Due to the high cost of inputs and land and everything else across the board, we’ve had more risk than we’ve ever had and probably the least amount of potential profit in my farming career,” Ragland continues, noting 2025 marked the 21st crop he has put out on his own.

(American Soybean Association)

Staying The Course
Ragland voted for President Donald Trump in the past three presidential elections. While he doesn’t regret the decision he made, he does hope the president will make some trade decisions soon that will help bring financial opportunity to U.S. farmers.

“We need to be as proactive as possible about getting some trade deals done. We need some wins. We’re still very hopeful and optimistic that we will be able to get a phase-two type deal done,” Ragland says, referring to the Trump administration’s trade negotiations with China that occurred during his first term.

He says the U.S. exports about 50% of its soybeans and that China purchased 52% of U.S. beans exported in 2024. “So if you see a soybean field, every fourth row of soybeans went to China last year,” he says.

Trump’s trade-negotiation efforts have broad support from U.S. farmers, according to results from the Purdue University/CME Group Ag Economy Barometer survey that was released in early May. The survey indicated farmers are willing to endure short-term pain for long-term gain, according to Jim Mintert, emeritus professor of economics at Purdue.

“Fifty-six percent of farmers surveyed said they believe the ongoing trade disputes will likely hurt them financially in 2025,” Mintert says. “At the same time, 70% said they believe the U.S. and agriculture specifically will benefit in the long term.”

A Farm Bill Would Help
Ragland shares the survey’s sentiment and adds that getting a farm bill approved by Congress in 2025 would be a win for farmers.

“We desperately need it for ag and our rural communities as a whole,” he explains. “We need a stable farm economy so there is an incentive for our brightest and best to want to come back to the farm and not seek to go elsewhere. I want my sons to have an opportunity to farm, and I want other people’s children to be able to have that choice as well, but there’s got to be an economic opportunity to make a living.”

Your Next Read — Death Out of Order: A Remarkable Journey to Carry On a Family Legacy

It's Time To Lead: Strong Succession Won't Happen By Accident

Wed, 11 Jun 2025 18:14:42 GMT

Succession planning isn’t just a checklist item — it’s a defining leadership moment. As a farm or ranch owner, it’s time to stop waiting for the “right moment” and start leading with purpose. You’re not just passing on assets; you’re shaping the future of your operation. That means stepping into the role of leader with clarity, courage and commitment.

First, take a hard look at what kind of leader your farm needs. Are you focused on daily operations or vision and growth? Are you modeling strong financial discipline and decision-making? Are you addressing conflicts head-on and keeping your family aligned? Leadership requires more than technical skill; it demands the courage to tackle tough conversations, whether with partners, successors or family members. Great leaders don’t shy away from discomfort; they lean into it with the goal of building stronger relationships and a more resilient operation.

Communication is foundational. If your team doesn’t know what’s happening, how can they help move forward? Hold regular family meetings, define decision-making roles and ensure everyone understands their responsibilities. Avoiding conflict only leads to confusion. Structured, transparent communication builds trust and keeps succession planning on track. Communication is also how you build buy-in from the people who will carry your operation forward.

Leadership Isn’t Handed Over

Next, you must actively develop your future leaders. Don’t wait until you’re ready to retire to begin mentoring. Give your successors meaningful responsibilities now. Let them learn by managing projects, participating in financial discussions and handling day-to-day operations. Leadership isn’t handed over — it’s earned through real-world experience and demonstrated commitment. Every season serves as an opportunity to develop those skills and test readiness.

Set clear standards for advancement. Define what success looks like: required experience, education and financial knowledge. Make sure successors understand what it takes to lead and hold those leaders accountable. If someone isn’t ready or is unwilling to step up, be honest. Your farm’s legacy deserves strong, prepared leadership.

Succession planning is hard. Many families stall out due to fear, conflict or lack of clarity. But real leaders don’t quit when times get tough, they face challenges head on. If your planning has gone off track, reset. Re-engage your family, bring in outside support if necessary and commit to consistent action.

The future of your farm depends on your leadership today. Will you linger in uncertainty, or will you lead with confidence? Strong succession isn’t going to happen by accident. It’s driven by leaders who are willing to plan boldly, act decisively and invest in their next generation. Your family and your operation are counting on you. Be the leader they need.

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Death Out of Order: A Remarkable Journey to Carry On a Family Legacy

Wed, 11 Jun 2025 16:48:26 GMT

This wasn’t part of the plan.

Brittany (Krehbiel) Hukill was born into a farm family that runs five-generations deep. As an only child in the unforgiving geography of west-central Oklahoma, grit wasn’t just something she learned, it was something she witnessed every day.

That grit, however, was tested at a very young age. At just 13 years old, Hukill’s dad, Jeff Krehbiel, received a shocking diagnosis: brain cancer.

“When Jeff was diagnosed with brain cancer in 2009, I went back to farming,” says Karen (Krehbiel) Dodson, Hukill’s mom. “His dad had retired on paper, but most farmers don’t really retire — they’re still there. So, his dad came back and helped while Jeff was sick.”

An accountant by trade, Dodson juggled farming, motherhood and fueling the farm family through meals — something her mother-in-law had done for decades before her. But running the farm wasn’t part of her plan, either.

After a two-year battle with brain cancer, Jeff passed away in 2011. Buried on his 48^th birthday, Dodson lost her husband of more than 20 years and Hukill lost her dad at just 15 years old.

A Defining Moment
A month before he passed away, Hukill and her mom had gone to visit Jeff in a care facility. Jeff could hardly speak due to several strokes. But there’s one late-night visit after a high school game she vividly remembers.

“He looked at me and asked, ‘Are you coming back?’ I knew he didn’t mean coming back to visit him. He meant, ‘Are you going back to the farm?’” Hukill says. “There was this massive elephant in the room for him. We’d worked for four generations to have this farm. I said, ‘Yeah, I plan to come home and farm.’ At that point, I had made my decision of what my plan was.”

Left: Brittany learning from her dad, Jeff Krehbiel. Right: Brittany with her grandpa, Wayne Krehbiel, and mom, Karen Dodson.

(Krehbiel Farms)

Deciding to come back as the fifth-generation to a farm she says only has a 6" layer of topsoil was the moment that defined her future.

“Mom’s only requirement was that I go and learn something and bring it back,” Hukill says. “She wanted me to go see more than just our few sections right here and get off the farm for a time.”

That wisdom set her on a path to Oklahoma State University (OSU). Majoring in agricultural economics, she thought that would be the most valuable degree to use when she ventured back to the farm. Hukill says she had plenty of teachers in high school, and even an adviser at OSU, who encouraged her not to go back to the family farm. She decided to forgo any internships or summer jobs to spend every opportunity helping at home.

But when Hukill was about halfway through college, her plans changed again.

“My father-in-law passed away in December 2016,” Dodson says. “My mother-in-law owned part of the farm, I owned the operating portion and Brittany was heir to all of that.”

(Jessy Frizzell Photography)

Another Generation’s Knowledge Gone
Healthy up until the day he fell on the farm, Dodson lost her father-in-law and business partner, and Hukill lost her grandpa — the only individual left who held the Krehbiel name and had decades of farming experience and knowledge.

“At that point, I was a year and a half from graduating college, but Logan [her now husband] and I said, ‘We’re going to have to get home, so both of us pushed the gas harder and graduated a semester early in December 2017 then got married in April 2018.”

Logan then started an accelerated nursing program, living nearly 40 miles away for about a year.

“As he finished nursing school, we moved into the farmhouse and have been here since,” Hukill says.

Today, Logan still has his off-farm nursing job, and as of last fall, he is an equal partner of the farm.

It’s split three ways, with Dodson managing the financials, Hukill managing the irrigation business and her husband as the farm manager.

(Jessy Frizzell Photography)

You Don’t Know What Questions to Ask When Your Dad Dies at 15
Losing her dad and grandpa all before graduating college wasn’t part of Hukill’s plan.

“There are a lot of questions you would have asked if you would have known you should have asked them, but I was 13,” Hukill says. “When I had my dad around, to me, he was dad. To everybody else, he was the boss man. He was the guy on the Wheat Commission. He knew his stuff. I didn’t realize how much I was going to miss and the knowledge he had in his absence.”

She also expected to have plenty of time to glean knowledge from her grandpa.

“You have this illusion that you have time to ask questions and learn from those previous generations, but once people start dying out of order and once people are gone, there’s no way to get that knowledge back.”

While she wasn’t able to capture that priceless knowledge from her dad and grandpa, she’s learned through trial and error and looks to neighbors who have been a reliable source of knowledge.

Establish a Plan Early
Though death isn’t part of anyone’s ideal plan, it’s a reality. The unexpected farm transition her family experienced sparked Hukill and her husband to create an estate plan before either of them turned 30.

“Before we had kids, we had estate plans set up,” Hukill says. “If we died today, what’s the plan? Because the kids aren’t going to take it over. How do we liquidate everything to take care of the kids we leave behind? We’ve been able to have those conversations about succession planning, even when our kids are little, because we have seen what works and what was a struggle to overcome because of how things were left.”

Hey @shanferrell -
We got it in writing! BEFORE we needed it! Aren’t you proud?! pic.twitter.com/mmgAvQj1ti
— Brittany Hukill (@bvhukill) June 9, 2022

She credits her mom for helping with that vision and the willingness to pass the farm to Hukill and her husband in a strategic manner that will continue the farm’s legacy.

“I think we would all agree it’s all hands on deck to keep it alive — whatever that looks like,” she adds.

(Jessy Frizzell Photography)

Navigating $5 Wheat by Faith
Poor margins paint a grim outlook this year. But instead of focusing on what she can’t change, Hukill is putting her energy into what she can — while not taking for granted the opportunity she has to raise her family on the same land farmed by generations before her.

“It’s not about me. It really isn’t. I truly feel like, yes, this is my family’s farm, but this was a gift given by God, so I’m going to do the best I can to take care of it, and we’re going make the best decisions we can with the information we have,” Hukill says. “If I would not have had the start I did, I don’t know that we would have made it this far. I don’t know how people get started in agriculture right now. But I am very thankful for the foundation set before me by the generations who came before.”’

Your Next Read — Tick Tock: How Long Do You Need For A Successful Transition?

Tick Tock: How Long Do You Need For A Successful Transition?

Tue, 10 Jun 2025 16:00:00 GMT

How do you know when it’s time to start transitioning your operation to the next generation? Rena Striegel, president of Transition Point Business Partners, says to aim for a decade.

“If we’re lucky, we’ve got that long. Sometimes we don’t, though,” Striegel explains. “Sometimes things happen and we have to move much quicker than that. An illness can escalate transition quickly. A disagreement can go from ‘We’re all good’ to ‘We’ve got to fix this right now.’ And sometimes lack of planning can cause an extremely difficult situation – particularly if someone wants to exit quickly.”

She says the fastest succession plan she has ever seen executed from start to finish was six months.

“That was so painful, I cannot even begin to describe how difficult that was to get four brothers to agree on a plan and ready to execute in six months when the first one wanted to be out,” Striegel says. “We did it, but only because that farm family really sat and hung in there. If one of them had lost his patience or his temper, that whole thing could have blown sky high.”

Striegel compares the timeline of your succession plan to landing a plane.

“Think about those flights where the runway is really long. The plane comes in, it touches down nicely, and it just comes to a stop, right? It’s nice and gentle. No problems,” she says. “If you think about those landings where it’s stormy, or the runway is short, they’re a little scary, they’re really abrupt, they’re very stressful, and they can kind of hurt. So, we want to give as long of a runway as possible to give everybody a chance to ease in.”

The 10 years you ideally have are broken down into this timeline:

Years 1-2: Assemble your professional team and make some of the biggest decisions. Understand your entities and reorganize assets if necessary. Update your documents.
Years 3-4: Work with the next generation to get them ready for the roles they will have. Practice good communication and iron out dysfunction.
Years 5-10: Begin actual transition of ownership.

What comes first during that ownership transition process will vary.

“Sometimes it’s operational first. You’re allowing successors to make some of the operating decisions. Then maybe it’s some of the financial decisions, maybe it’s marketing decisions, maybe it’s buying inputs, maybe it is selecting vendors. Maybe you’re letting them negotiate for equipment,” Striegel says. “Whatever it is, you’ve got to figure out what the timeline is to take things off of your plate and put it on to them, and to be really clear about that, so that we can develop successors in the right way.”

Transitioning relationships is also an important piece of the puzzle.

“When do you turn over the relationship with your banker? What about your lawyer or your CPA? When and how do we get that next generation involved in those conversations?” Striegel asks. “If we don’t transition relationships, what happens is the next generation has no relationships with the people that have been serving your family for however many years and when you’re done, so are they.”

She says there won’t always be a finite end date on the transition, but it’s important you feel confident about the progress.

“The main thing is to say, ‘Over this period of time, I’m going to start working with you to take this over’, make sure you spend time doing that, and then let it go with oversight,” Striegel says. “I always like to say, ‘You watch me do it, I’ll watch you do it and then you do it on your own.”

Success Measured Differently: This Arkansas Farmer Is Not Bound By Legacy

Fri, 06 Jun 2025 15:29:43 GMT

Anchored with a family legacy and personal interest in farming, you’ll find Dalton Dilldine building a farming operation with attention to detail and natural curiosity.

“When we travel, I like to think about what I would do if I lived there,” Dilldine says. “I wish I had the opportunity to go to New York and walk up to someone in a suit and job shadow them for a day. I think it would be fascinating to see and understand how they spend their time.”

The continuous thread of his family’s operation drives Dilldine to overcome any obstacles and challenges in farming.

One such moment includes his father’s sudden death in 2010 at the age of 55.

At the age of 18, Dilldine was faced with the circumstances of his father’s passing: he could continue the family’s farm business, start his own entity or choose to go to college. As the type of guy who would choose “all of the above” to a multiple choice question, he did all three. Dilldine has since carried forward a legacy of farming that goes back to his great grandfather’s start with 154 acres in 1926. Dilldine Farms was in existence for decades, eventually operated by his parents. Once Dilldine was of age, he created Mezza Luna Farms.

Based in Mississippi County, Ark., the business is now over 5,900 acres and focuses on row crops.

For his achievements in the business of farming, Dilldine was awarded the 2025 Top Producer Next Gen Award, sponsored by Fendt and Pioneer.

(Lloyd Photography)

Business Management
Legacy has not bound him, rather he’s harnessed creativity in problem solving with hard labor. He straddles honoring the family farm’s foundation while finding new ways of doing business and becoming more enlightened.

For example, he’s recently taken to using ChatGPT as a brainstorming tool.

“I’ve asked it to ask me 10 questions about the farm so it better understands our business,” he says. “Then, it can respond when I prompt it to tell me how I can make improvements in certain aspects of the operation.”

With some curves in the road and bumps along the way, his trajectory remains firm. This is despite the farm looking quite different than when his father operated it.

“Before my dad’s passing, it was a large farm — actually spread across two farms,” he explains. “And honestly, I don’t think we would be in as good of shape if we were farming all that ground today. I am the one making the decisions, and I don’t know how well my decisions would go farming that many acres. As technical as farming is in our area, it would be overwhelming at that scale.”

Dilldine says he invests in how he manages the relationships in the business to help him grow, and when the time is right, more acres will bring larger scale. For now, he remains focused on the details, including a water hole on a 20 acre field.

“Some guys wouldn’t worry about something like that, but the little stuff adds up.”

His heart compels him to labor on the farm as his mind focuses on the business details.

“This is a high stakes business,” Dilldine says. “You have to be detailed-oriented.”

His No. 1 stated goal for the farm is profitability for short-term and long-term success.

Ask him about management of the farm, and he references his spreadsheets — whether it be for bidding out inputs, landlord contacts, etc. — but then he starts talking about the relationships behind those rows and columns.

With facts and numbers in mind, he balances the personal and relationship side of the business. The weight of loyalty tips the balance on the scale for Dilldine.

“When I hire you, I plan for you to stay long term,” he says. “We’ve had more people pass away still working for us than we’ve let go.”

And longevity in time working for the farm is common. One key employee is secretary and bookkeeper Delois Tittle, who has worked for the family for almost 40 years.

(Lloyd Photography)

Not Just a Tractor Driver
Over the years, Dilldine has shifted what his day-to-day work looks like.

“The biggest transition for me, individually, is now I have trained employees to do the labor intensive work I did in previous years. But I still tell and show all my guys I would do anything I am asking them to do,” he says.

Whereas success used to look like acres covered in a day, now Dalton Dilldine has a different perspective. Since evolving to more of a manager, and less time in the cab himself, Dilldine says he measures progress differently.

“I’m trying to do my best every day. At the end, I look for the reward in the day. There’s always going to be tomorrow. Let go of yesterday, and try to enjoy the success of the day. There’s always at least something positive,” he says.

In the spring of 2025, that looks like getting through six straight days of planting without a break or slowdown.

“There are things I now realize I can’t do from the cab of the sprayer,” Dilldine says. “I’ve got a guy trained to run our sprayer, and he’s done an excellent job. Letting someone else do the spraying is a huge role for me, but it’s taken something off my plate.”

He reflects on a time when he was the one in the sprayer, and his training and team organization today feels like a weight taken off his shoulders.

(Lloyd Photography)

“For a non-farmer, the most surprising thing is the time I spend in my pickup — 60% to 80% of my time at work is in my truck facilitating the next task of the day in some shape or form,” he says.

With the current structure, he’s able to focus differently and be more efficient.

“This is a business, and as it’s owner and operator, I no longer get to spend my hours as a tractor driver,” he says.

In 2019, Dilldine had an on-farm accident. While operating the sprayer at a low rate of speed, the back wheels hit a 3’ ditch, resulting in the air ride seat bottoming out, and unfortunately breaking his back.

“My wife, who is a nurse practitioner, was working in the ER when I was brought in,” Dilldine says.

Through those 10 weeks of rest and rehabilitation, Dilldine says he learned patience and how to delegate.

“At the foundation, we have to trust each other on the farm. Trust the people you have hired and worked with so when it’s crunch time, they are going to do the best job they can,” he says. “I also learned how to give good notes — how to communicate what needed to be done with expectations of the outcome.”

Three years ago, Dilldine expanded his farm team using H-2A labor, and again he can report consistency with employees repeating their term on the farm year after year.

Methodical Approach
“I try really hard, taking one step in the right direction — whether it’s a baby step or a jump as far as I can jump. Every decision, I make it thoughtful and educated,” he says.

Unafraid to tackle problems with creative solutions or out-of-the-box thinking, Dilldine purchased a commercial grain facility during the 2022 harvest season amid a drought that was leading to significant decreases in basis due to low river levels.

With 750,000 bu. of total storage, Dilldine says he uses three-fourths of the capacity currently. Originally built in the 1940s, the facility had since been out of use.

“Regarding the grain bins, people didn’t see it for what it was and honestly, what it is now. The grainery was basically dilapidated, but now its a wealth of informatics and technology on the inside. Seeing it back up and running, it’s valuable. It’s as nice or nicer than where I deliver my finished product to,” Dilldine says. “I can dump trucks in about six minutes, and I can load them out in about 12 minutes — which is pretty fast for a private grain facility.”

(Lloyd Photography)

Another example is how Dilldine added drone spraying to his operation.

“I took an entire year of planning that I was going to get a drone and learning all I could,” he says. “And I had a friend who has done it for a few years now, so it was nice to have a contact for planning and troubleshooting.”

This past year, Dilldine was eager to see what the drone is capable of in supplementing his ground sprayer for applications through the season.

“It’s been a huge benefit to be able to spray right after a rain. And if I need something done right away, it’s a supplemental tool to my ground rig sprayer. It’s saving me money, and I’m getting to apply the chemicals when I want to.”

Measure of Success
Building his network, such as the friend who had experience with drone spraying or talking to farmers about how they are also using ChatGPT, is a goal for Dilldine.

“I’m doing everything I can to be as efficient as possible. And when it comes to how I could improve things on my farm, I know networking is always going to be a great tool,” Dilldine describes.

The sharing of ideas is a two-way street. For example, Dilldine built out a spray tender trailer after looking at the setup of dozens. He settled on his design, and then five other farmers have since replicated the plans.

Plans for the Future
In farming, Dilldine is grateful for the opportunities he has pursued, and with growth in mind, he often approaches his landlords with propositions that benefit both parties.

“I want to show how we are taking care of the land we have and how my efforts can benefit us both financially and cultivate sustainability of the land,” he says.

As he works on making both the daily and long-term strategic decisions for the family’s operation, Dilldine says he often wonders what his father would think if he was here.

“I wish I could ask him today ‘Was buying the grain bins a good job? Was leveling this field the right answer? Should I have put risk out there and bought more land?’ I had to learn a lot on my own,” he says.

(Lloyd Photography)

But he’s quick to answer if he’s had any failures in farming, with a no.

“I know you’ve got to let mistakes go, and do your best every day,” he says. “At the time, make the best decision with the information you currently have. And it’s been hard work, but I’ve tried hard to not look at any failure as a failure. I’ve had hardships, but they are just learning experiences.”

And this coming June, alongside his wife, Skiver, Dilldine will have the joy of becoming a first-time dad.

“In 25 years, I hope my daughter is well on her way through life, and if she wants to farm, I hope we have everything ready for her to be able to do so,” he says.

Dalton Dilldine (pictured with his wife, Skiver), received the Next Gen Award during the 2025 Top Producer Summit in Kansas City. This award, which is sponsored by Pioneer and Fendt, is given to a grower under the age of 40, who demonstrates excellence in the business of farming. The deadline for this year’s award is Sept. 1.

(Jim Barcus)

Diversification Drives Success on This Idaho Farm

Thu, 20 Feb 2025 14:55:32 GMT

Diversification has long been a big part of life for the Riggers family on their farm in Idaho’s fertile Camas Prairie. Diverse soil types support a diversity of crops, ranging from wheat (soft white, hard red winter and hard red spring), food-grade barley, canola, rapeseed, mustard, chickpeas, green peas and lentils. Roughly 15 percent of their more than 8,000 acres produces grass seed — Kentucky blue, turf-type tall fescue and reclamation varieties.

This diversification enables Clearwater Farms to remain profitable even when commodity prices are down. It also helps improve soil health, says Nate Riggers on the latest episode of Grow Getters , a Farm Journal podcast focused on how producers are diversifying their operations by starting new businesses. “We’re very sensitive to maintaining soil health and we do that primarily through reduction tillage and growing a diverse complement of crops to stimulate the soil biology.”

So it should come as no surprise that the family continued to diversify its operation in 2019 by starting a new business, Cold Stream Malt & Grain Company, which processes craft malt barley and sells finished craft malt to breweries throughout the Pacific Northwest. While barley has been a foundational crop on Clearwater Farms for quite a while, Nate’s son, Chris, who now leads the family operation, says finding a strong market for it has been difficult in the past.

“We’re not close to interstates or big cities and that’s where the malt houses are and the breweries,” Chris says. “It’s been challenging to have a competitive market for growing malt barley.”

To create their own market and drive Cold Stream Malt & Grain toward success, the Riggers partnered with Horlacher Farms in Latah, Washington, and have added value along the supply chain by offering finished malts under their brand. “The company falls in with the theme of everything else we strive for on our farm in adding diversity in a lot of different ways,” Chris says.

While Chris’s return to the farm in 2017 has played a key role in starting the new company, Nate says the malt barley idea has been knocked around on the family farm for a while. “My brother, Steve, and I were about 20 years too early,” he says. “We couldn’t get our foot in the door because we didn’t have the contacts with malt house and craft breweries to complete the chain. When Christopher came back to the operation, he and our partner were able to get the business off the ground.”

Given that the Riggers family has been profitably farming their land since 1895 and, in 2022, were chosen as a finalist for the Top Producer award, all signs point toward continued success.

Watch the full Grow Getters interview:

Visit the Clearwater Farms website: https://clearwaterfarms.us/

Visit the Cold Stream Malt & Grain Company website: https://coldstreammalt.com/

BREAKING: USDA Secretary Brooke Rollins and Sen. Roger Marshall to Join Farmers At Top Producer Summit

Sun, 16 Feb 2025 21:24:20 GMT

Secretary of Agriculture Brooke Rollins and Sen. Roger Marshall of Kansas will speak Tuesday morning at this week’s Top Producer Summit in Kansas City. The event is among the secretary’s first public appearances since being confirmed Feb. 13 . The fireside chat will cover key topics driving the future of agriculture.

A one-day pass to the event is available to give the agriculture industry a chance to hear Secretary Rollins share her vision for U.S. agriculture. Advanced registration is required due to security protocols. Register now with discount code ONEDAY to receive the special rate.

Secretary Rollins, originally from Glen Rose, Texas, serves as the 33rd Secretary of Agriculture. Most recently, she was founder, president and CEO of the America First Policy Institute. During President Donald Trump’s first administration, she was the director of the Domestic Policy Council and assistant to the President for Strategic Initiatives in the White House. She also previously served as director of the Office of American Innovation.

Sen. Marshall is a physician and U.S. Senator for Kansas. As a fifth-generation farmer from Butler County, Sen. Marshall became the first in his family to attend college. In the Senate, he serves on the Committee on Agriculture, Nutrition, and Forestry. He is the chairman of the Subcommittee on Conservation, Climate, Forestry, and Natural Resources and a member of the Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research.

Tickets are still available to attend the entire Top Producer Summit , which is agriculture’s premier educational and networking event for forward-thinking farmers and ranchers. The event will bring producers of nearly a dozen commodities together at the Loews Kansas City Hotel to share business opportunities and ideas for taking their operations to the next level.

In addition to the fireside chat with Secretary Rollins and Sen. Marshall, the agenda includes:

The Future of Farming with Byron Reese, futurist, technologist and entrepreneur
Conquer Decision Paralysis with Rena Striegel, Transition Point Business Advisors
How Income Taxes May Change Due To The Election with CPA Paul Neiffer
Land Diversification: What to Know Before Exploring Renewable Energy and Conservation Opportunities with Quint Shambaugh, Pinion
What’s Ahead for Farm Input Pricing with Sam Taylor, Rabo AgriFinance
What to Watch With the Weather in 2025 with Eric Snodgrass, Principal Atmospheric Scientist, Conduit Ag
Global Fertilizer Market Overview: What It Means At Your Farm Gate with Josh Linville, StoneX

Some of the nation’s most outstanding farm operations will be recognized, including winners of the 2025 Top Producer of the Year award , the 2025 Women in Ag award and the 2025 Next Gen award .

Unexpected Ways A Missouri Farmer Brings Family Back To The Farm

Thu, 13 Feb 2025 20:29:30 GMT

After some time helping his grandpa on the family farm, Josh Payne decided to leave his teaching career and help run the operation full time.

Because his grandpa had the land and equipment paid for, their 600 acres in Concordia, Missouri provided enough income for two salaries - but Payne knew his sister may want to join them as well. That’s when he adopted the motto “Get Big or Get Weird”.

“We could pick up 1,000 acres, but that means we need more equipment,” he tells Andrew McCrea on the Farming The Countryside podcast. “Instead of getting more acres, we decided that we wanted to take these small pockets of our farm and try to add value to it.”

University of Missouri staff suggested the Paynes try chestnuts.

“At a wholesale level, they’ll produce about 2,000 lb. per acre at $3/lb. wholesale. That’s $6,000 an acre, so if we put 30 acres in, that’s enough for my grandpa, me and my sister to make a go at this,” Payne says.

But there was a catch.

“The problem is we just had to wait 10 years for the first harvest,” he says.

From Chestnuts To Sheep To Hogs
The family went ahead and planted their chestnut orchard, and alley cropped corn, soybeans and cover crops as they waited for it to grow. They still needed a plan B in the meantime, though. That became sheep.

“We chose sheep because the math is really good,” Payne says. “If you can have three ewes per acre, at a very wholesale level, you end up with four lambs per acre. If you sell the lambs for $200, that’s $800 per acre, and you’re going to spend about $100 per acre. That’s significantly better profit-wise than any sort of row crops.”

The main economic driver of the farm turned from row crops to sheep quickly. The Paynes began direct marketing the lamb and selling breeding stock to drive an even higher price for their products.

The sheep now account for 300 of the farm’s acreage, and the family has another new venture up their sleeves as well.

“Our next project is to take 110-acre plot and turn it into a wholesale pasture pork operation that we’re actually really excited about,” Payne says.

Just like the sheep, Payne has a plan mapped out for the hogs.

“We’re trying to take a hoop house and grow grains in between tree rows. We’re going to plant these rows of trees that eventually will drop fruit - mulberries, persimmons, apples, chestnuts, etc.,” he explains. “Eventually those will provide significant amounts of feed for those pigs. Then we’re going to grow grains in between.”

But there’s a bigger picture behind the farm’s hog expansion.

“My brother in law works in Kansas City, and he wants to be able to not drive to Kansas City,” Payne says. “We said is there a way that we can make enough money on acres of land that we have that he doesn’t have to drive to Kansas City?”

People As The Driver
The driver on Payne’s farm is people. He says if you want to do the same with your family, you have to find something meaningful for them to do, that they know how to do and that they can make money with.

“If you were to take a 1,000-acre farmer, and you were to take 40 of that out of row crops or modify it, all of a sudden, this 1,000-acre farmer is a 960-acre farmer, and they have a 40-acre operation that their son or daughter runs,” Payne says. “At commodity prices today, that could make as much profit and probably more. You just need more people. And for me, that’s just good news.”

He adds one caveat to be ready for.

“You just have to be willing to let the coffee shop talk and tell stories about you,” he says.

Watch more of the Farming The Countryside podcast here

How To Budget For Your Farm's Transition

Tue, 28 Jan 2025 13:00:00 GMT

In 2023, I said the most important thing for your farm business is build your transition plan. Recently, we’ve focused on knowing your numbers, and now it’s time for cost of living and budgeting for retirement.

When I work on transition planning with family farms and businesses, I often start by asking whether or not the senior or junior partners have met with a certified financial planner. Usually, but not always, the answer is no. But almost every time, the senior partner needs a clearer picture of their needs in the next chapter of transition or retirement. They think they will be OK, but until it is put on paper, there is still this massive fear about the unknown. Thankfully, it’s easy to navigate.

Anticipate Your Lifestyle
The first step is understanding what your cost of living looks like in retirement. Yes, this means budgeting and anticipating expenses.

I put together a one-page, farm-centric worksheet so you can easily calculate your budgetary outlook. This includes expenses such as healthcare, vacation, groceries, basic needs, and even that new fishing boat you want to buy. I don’t care what your budget is, but you should. You need to have an excellent idea of what that number is. In fact, it is one of the most respectful things you can take the time to calculate for you, your spouse and your transitioning partner.

Put It On Paper
The next and final step (I’m a simple man) is mapping out the long-term business needs and other specifics for your long-term income and expenses. For most of you, the income will include farming for a while, including grain sales, equipment sales and then cash rent and other income such as social security, investments and diversified income from other sources or businesses you work in. The expenses include land, equipment and housing notes, primarily.

The important part is physically putting the numbers in to see what the next 10, 20 and 30 years look like on paper. The worksheet calculates the income and expenses you input and allows you to select your ‘crystal ball’ inflation rate, investment return and anticipated tax implications.

I want peace of mind in your retirement and transition planning. I want you to know where you stand and what your needs are. I want you to feel comfortable with the hardest thing you have to do once in your life. And I’d like your transitioning partner, whether family or not, to know your needs and expectations as you navigate these next steps.

Do yourself a favor and take an hour or two to put on paper what you might have been putting off for too long or have yet to take the time to think about.

Shay Foulk
shay@agviewsolutions.com

Leadership and Legacy: Empowering Stories from the First Female Corn Growers President

Fri, 17 Jan 2025 12:00:00 GMT

It’s a fine line Pam Johnson walks gracefully—actively contributing to the family farm, giving her time and talent to farm organizations while building her legacy and now, in her words, letting go.

For 25 years, she’s used her farm roots, passions and gift of leadership in multiple advocacy organizations. And since 1972, she’s built up the family farm with her husband, Maurice, who died in 2024.

For her achievements in agricultural advocacy, farm business innovation and industry leadership, Johnson was recognized as the 2024 Top Producer Women in Ag award winner, which was sponsored by the Farm Journal Foundation.

Bigger and Better
From their 1,150-acre corn and soybean farm in Iowa, Johnson has springboarded her on-farm experience into advocacy and leadership.

In 2013, she became the first female president of the National Corn Growers Association (NCGA)and collaborated with trade associations as well as members of Congress to work on the farm bill.

She also went on to help found MAIZALL, the International Maize Alliance of Corn Growers Associations, which included Brazil, Argentina and the U.S.

“Not many people can go from the farm to the halls of Congress and do that hard work, and fewer remember they are still from the farm and representing their friends, neighbors and fellow farmers,” says John Doggett, former NCGA CEO. “Pam never forgot that the efforts she made were not for her, but those who placed their trust in her to advocate for them.”

(Lilac Design and Photography)

“I love the big picture stuff — especially when I started meeting with farmers in Iowa, around the country and around the world — it was energizing to work on the next big thing,” Johnson says.

Finding how she can use her voice and engage in the industry beyond the farm gate was something Johnson found inspiration from within at first, and then was able to quickly see how it paid off.

“When we were young and working to make a buck, a local elevator failed, and they had a bankruptcy hearing in Des Moines. Some of us went to that, and I told Maurice I was going to get up and say something because I was angry and didn’t think there would be accountability by the owner or restitution for the farmers who were devastated. I thought it was important to be an advocate for people and for my community,” she says. “And people noticed. I got up and found my voice. When you join with other people, you can make a difference.”

That experience led to Johnson being asked to help a local economic development group.

One of her champions was Helen Inman, who served on the Iowa Corn Promotion board preceding her.

“She encouraged me, even though I said I was busy,” Johnson says. “But she set the hook — she said, ‘It’s the best work I’ve ever done with the best people I’ve ever worked with,” so I said, ‘Yes, I will do it.’”

Through Johnson’s leadership on the promotion board, farmer investment in value-added agriculture and specifically ethanol grew. There are now six ethanol plants within 50 miles of her farm providing diversified markets and ownership dividends.

The role was life changing and the true springboard for her further leadership.

“There have been times when I’ve thought I was too busy, but working on things that mattered, doing meaningful work with people you like — that makes a difference,” she says. “It was said when I worked with the U.S. Grains Council that demand creation isn’t a spectator sport, and it’s the truth. You can wish and hope, but if you don’t do anything about it, it’s not going to happen.”

Her time away from the farm fostered new ideas and new opportunities.

“These experiences and getting to be friends with other farmers, we’d go to their farm, and they’d come to ours. It just made us bigger and better people,” Johnson says. “I had the luck to be exposed to the ideas and bring them to the farm.”

Transitioning for growth mode to a new stage of retirement, Pam Johnson farms with her sons Ben and Andy in north central Iowa.

(Lilac Design and Photography)

Seeds Planted At Home
Johnson says the greatest achievement has been building the farm business with her husband, Maurice, and now successfully transferring it to their sons, Ben and Andy.

Being around agriculture all her life, she says a focus on the future has always been at the forefront.

“My mom and dad were farmers, times were tough, and dad started working as a mechanic and ended up being the owner of the John Deere store,” she says. “And every week he had an ad in the paper and included his philosophy: the greatest crop we are going to raise is our children.”

She says farming chose her, but her first career was as a nurse. After the birth of their sons, she left nursing and worked full time on the farm.

“Everyday, Maurice and I went out the door shoulder to shoulder,” she says. “The women in this family have always been treated with equality. We sink or swim together.”

The farm had farrow to finish hogs for 38 years — exiting the hog business in 2010 and since then solely focusing on row crops.

“We survived the farm crisis of the 80s and the collapse of the hog market in 1998,” she says. “In ’98 we saw so many people go out of business, and it was survivor’s guilt, because other people were working just as hard as we were. From that we learned resilience, perseverance and keep your nose to the grindstone.”

(Lilac Design and Photography)

A business focus on farm finance has been paramount, which was aided with digital recordkeeping and benchmarking with other farmers.

“Maurice was the driving force behind the farm accounting going digital, and frankly, I don’t have that in my skillset,” she explains. “It’s another lesson in life, to surround yourself with smart people and then do what you are each good at.”

She and Maurice took on senior leadership roles in the farm management, and they set the expectation both sons would go to college before returning to the farm—if that’s the future they chose.

“The beauty in having kids go away to college is beyond just the degree and education — it’s the ideas, their network and their bigger thought process they bring home,” she says.

Through a series of fortuitous events, both sons married and returned to the farm — offering additional labor resources and stepping into more management decisions with their wives. They were able to purchase nearby farms, share resources and work together.

“Each of our kids have their own land, but we tried to move forward together and work together,” she says. “We let skills, talents and passions unfold over the years. You can’t be good at everything — it helps when everyone is different, and you aren’t all clones.”

She says the goals for the farm have been continual improvement and growth of the business.

“The aim is to keep moving forward, be successful, and enjoy life and family along the way,” she says.

(Lilac Design and Photography)

Pinch Me Moments
From economic development to scientific research, Johnson says, “Sometimes I sit back and smile that I had a part in making big things happen.”

One area she particularly enjoyed was the scientific research work funded by the grower associations, including genetic mapping.

“Science made my brain sparkle, so I got hooked into the research committee,” she says. “These were visionary people at the table, and while the human genome was getting mapped and the rice genome was getting mapped, we knew we had to get the corn genome mapped — to tap into the potential of what corn could be.”

Seeing the opportunity to be a champion for the project, Johnson raised her hand to go to Capitol Hill.

“We got the funding, and it was industry changing,” she says. “And now it’s moved from genomics to phenomics, and there’s still so much potential.”

A coalition builder, Johnson sought out common ground to bring groups together.

“On a trip to Argentina with officers of the U.S. Grains Council and the National Corn Growers Association, we saw common issues — trade barriers, acceptance of biotechnology and more,” Johnson says. “So, we brought together the Argentinians, the Brazilians and the American groups. We had collaboration with the three huge corn competitors on one front, but we built trust, traveled together to China, the WTO in Geneva and the FAO in Rome and worked together.”

In the moment, the work was rewarding, and upon reflection, Johnson found it empowering to think what was started.

“You’re never sure sometimes if what you did made a difference, but we planted seeds anyway,” she says. “And I think back about what we did and say, ‘Pinch me, right?’”

Johnson notes her visibility as a female farmer and woman in association leadership is and should be encouraging to others.

“If you can see it, you can be it — it’s true,” she says. “If I was going to a meeting or to an event, I wanted to be encouraging and inspiring to try to make it easier for the next person behind me.”

Johnson has been active with other advocacy groups including Common Ground, which focuses on consumer outreach, and FarmHer, which provides mentorship among female ag producers.

“There’s not much more gratifying than when I meet someone who wants to do something I am doing or have done, and they say, ‘Tell me how I can get involved.’”

Pam Johnson and her husband, Maurice, navigated industry changes and the effects and opportunities for their Iowa farm all while Johnson pursued local, national and international advocacy leadership roles.

(Lilac Design and Photography)

Time of Transition
This year has brought a new chapter for Pam Johnson.

In 2021, her husband, Maurice, was diagnosed with pancreatic cancer. Since his diagnosis, she returned to her skills as a nurse and was his caregiver. He died on Sept. 7, 2024.

Now the matriarch of the farm, Johnson says her role continues to change. She wants to intentionally retire and fully transition to the next generation.

“At the end of this year’s harvest, I thought, I’m so lucky,” she says. “After Maurice’s funeral, we went into harvest together. And we had long hours day after day without a rain break.”

In the middle of harvest, Johnson got the sign of encouragement she needed.

“I asked Maurice to send me signs. And in the midst of harvest, we got to experience the best northern lights show I’ve ever seen. My daughter-in-law said, ‘Grandpa is with us,’” Johnson says.

She and Maurice spent their farming career in growth mode, and now is a time for change.

“Now my identity is flying solo, and I’m going to retire. I do not want to grow any older and wait to fully turn over the farm,” she says. “There are checklists, and we know what to do.”

She says she’s staying on the farm in the house she and Maurice built in 1975 from boards reused from an old corn crib, and she’ll contribute as she’s asked to.

“Now is the time to try to make things better for the seventh and eighth generation and at the same time let go,” she says.

She’s continuing to live by the words she and Maurice built the farm with: courage, resilience, perseverance, excellence and doing the right thing.

What the Next Generation Can Do to Prepare for Transition Planning

Thu, 19 Dec 2024 19:38:30 GMT

The interconnectedness of agriculture business and family relationships can make transition and estate planning feel challenging. Having the conversations and carrying out the legalities are two separate components that require great detail. Add on managing finances and what should be an exciting opportunity for the rising generation can quickly become overwhelming.

Jessica Groskopf, a Nebraska farmer and transition planning expert, talks about transition and estate planning in a different light. She spoke on the Casual Cattle Conversations podcast about how the next generation can prepare themselves. She recognizes the challenges that come with the process, but also sees the hidden opportunities that can help the rising generation build for the future.

“There is a big part of the message missing when it comes to talking about estate and transition planning,” Groskopf says. “That part of the message is what we can do as the younger generation to prepare ourselves for that eventual transfer.”

Jessica and her husband know firsthand what it is like to build for the future even when there has been a lack of transparency and communication from the senior generation. Together, they turned what looked like a less-than-ideal buy out to others into a great opportunity for themselves by using emergency funds, good debt, flexible investments, and alternative revenue.

Groskopf says, “Fifty percent of land owned by an operator was purchased from a non-relative.”

That means the younger generation needs to start preparing financially because the likelihood of them purchasing property is very high.

Financial preparation can include many components. The Groskopfs knew they wanted to buy farmland at some point regardless of if it was in the family or not. So, they started early to prepare for their unknown scenario of a down payment for property.

“The key to savings and investing is time,” Groskopfs says. “The younger you start saving and investing, the better off you will be especially if you are allowing that money to grow over a significant amount of time.”

About five years after they began saving and investing, Jessica and her husband bought into the family partnership with the money they had accumulated. The amount of time, and money needed for a down payment is unique to each individual person and family.

Emergency funds are the first step to financial security.

“For most farm and ranch families, I prefer they have three to six months worth of family living expenses on hand,” says Groskopf

Emergency funds are the safety net that families can use to safeguard against bad debt and continue to move forward financially. One smart practice with emergency funds is to make sure they are in an easily accessible account that earns interest. Two account examples to explore are high-yield savings accounts or money markets.

The next step is to tackle “bad” debt.

“Not all debt is bad and debt is certainly not dumb,” Groskopf says. “Debt is a tool…I think most people understand what bad debt is, but I want to provide a clear definition. Bad debt has a relatively high interest rate, usually over seven percent. Bad debt is also purchasing items that are not necessary.”

Other considerations to make about debt include depreciation, tax advantages and if the item putting you in debt is adding value in other areas of the business. It ultimately comes down to how you manage debt because even good debt can pile up and put farmers and ranchers in less-than-ideal financial positions.

Once you have an emergency fund, and have paid off “bad debt”, it’s time to focus on other savings and investments.

“If the money will be needed within three years, it should go into the savings bucket,” Groskopf says. “High-yield savings accounts, money markets and bonds are all examples of accounts that can be used for shorter-term savings. Accounts used for savings should earn enough interest to outpace inflation, look for options with an annual percentage yield of 3% or higher.”

Groskopf says to invest money that will not be needed in the short term. Investment accounts usually have higher rates of returns but require leaving the money in the accounts for long periods of time to receive the advantages of using them.

For farmers and ranchers aiming to secure their financial future, Jessica recommends investing in flexible accounts. When picking an investment account, considerations need made to what tax and penalties may apply upon withdrawal of the funds along with any other stipulations that come along with the account. Once you have selected the account, you will then need to select the investments within the account. Producers should look for lost cost, diversified options such as Index Funds, Mutual Funds or Exchange Traded Funds, she adds.

“If your head is spinning when it comes to all this information, I’d encourage you to sit down with a financial advisor and explain your situation. Share how long you’d like to invest and how accessible you need the funds to be,” Groskopf says.

Alternative revenue streams or town jobs are a common risk management strategy for farm and ranch families. Whether they pay for living expenses or even supplement the business during the beginning years, they can be a valuable tool.

“I’m someone who says that it has to fit with the farm or the ranch,” Groskopf says. “You have to make sure the seasonality of the business doesn’t conflict with the farm or ranch and that you have the flexibility you need to get everything done.”

Financial and non-financial considerations need to be made before committing to another form of revenue for your personal life or ranch.

Building for the future takes time and experience.

“No one has taught any of us how to do this finance stuff…it is not something you should inherently know,” Groskopf explains. “If you are starting from scratch, go back to your balance sheet. Write down what you do and don’t have in place and even what you don’t understand. Connect with an expert such as your local banker or a financial planner who can help you move forward.”

If you are not comfortable investing on your own, work closely with a Certified Financial Planner (CFP®) professional, Certified Public Accountant, tax preparer, and/or investment advisor.

Listen to the full conversation:

Your next read: Tax Turbulence: How Sunsetting Provisions Could Change Your Bottom Line

Next Gen Spotlight: Minnesota Farmer Balances Tradition and Innovation

Thu, 12 Dec 2024 16:07:52 GMT

Growing up with five brothers, Rebecca Sip never expected to return to the farm full time. However, when her parents started talking about retirement, the future of the family farm was in question because her siblings had established off-farm careers.

“I had always thought someday when I had a family, I’d be able to bring them back to the farm for visits as I’d seen my extended relatives do for years growing up,” Sip explains. “When the thought there might not be a farm to come back to loomed as a reality, I had a conversation with my sister, and we both said, ‘let’s give this a shot.’”

Today, Sip raises soybeans, corn, wheat and sugar beets across 3,000 acres north of Ada, Minn., alongside her brother, Paul, sister, Marissa, and their parents. Taking the leap to full-time farmers hasn’t been without its challenges, but the family has learned to play to each other’s strengths.

Q: Did you face any challenges returning to the farm?

A: It was definitely overwhelming at first. Mechanics has been a huge learning curve for me. I still wouldn’t say it’s my strong point on the farm — my brother is far more gifted in that area. But it’s also been an encouragement because I can look back and see all the things I’m confident to tackle now that I didn’t know how to do when we started.

Q: What’s the hardest part of getting started as a young farmer?

A: You don’t have years of experience. For example, every field has different soil, each soil reacts differently to weather conditions, which can have major effects on crop results. My dad’s wisdom from his years of working through so many different conditions is really invaluable and something I want to thoroughly learn.

Q: What’s the best advice you’ve ever received?

A: There’s a verse from the Bible my dad has quoted for many years: “God opposes the proud but gives grace to the humble.” It’s just made me realize if I desire blessings in my life, I need to approach things in humility. That’s huge on the farm because it’s really easy when you’re in the heat of harvest to be tired, stubborn and not approach communication with humility. You can hold an opinion without doing it in a smug manner, and it certainly makes the disagreements go smoother if you can remember that.

Q: Any advice for others just getting started?

A: You don’t need to know everything at once, but you do need to be constantly learning — and slow down enough to enjoy it. A breakdown on the combine in freezing cold weather 20 miles from the shop is uncomfortable. Being stuck in the mud in three tracked Challenger tractors makes you wonder what you’re doing. But, in my view, those things also make you a more resilient person.

Q: What’s something you hope to implement or change on your operation down the road?

A: There’s going to be a lot of change for us in the next few years as my parents step back. Taking over the decisions and planning this last year has been another level of growth for all three of us. I’m really glad it’s a gradual transition process and not a hammer drop. Beyond that, there’s definitely things that would be nice to change and add to the operation, but with tighter margins you can’t throw much money at things that won’t necessarily give you monetary return.

Q: If you had a magic wand to fix one problem on the farm or in agriculture, what would it be?

A: Pesticide resistance. If every farmer was able to spray less, save money, save time and still end up with excellent results — that would be amazing.

Your Next Read — Unlikely Beginnings: How a Farm Journal Ad Transformed a Farm Family’s Legacy

Will the Tax Cuts and Jobs Act Get a Second Life?

Mon, 09 Dec 2024 14:00:00 GMT

It’s been the question hanging over CPAs, tax professionals and business owners: Will Congress extend the Tax Cuts and Jobs Act (TCJA)?

“This is potentially one the most important things we’ll see in the next couple of years,” says Avery Frank, manager at CLA.

The TCJA significantly increased an individual’s lifetime exclusion amount for gift and estate taxes, and it needs extended to continue its provisions.

“Currently, the figure we’re talking about as the double amount is $13,610,000 that any person may transfer during their lifetime or after to individuals or trusts for the benefit of the folks they care about,” Frank says. “For a married couple, that means they have presently to transfer about $27 million of wealth.”

With the unknown of if and when Congress will act, CLA provides this guidance based on estate size. The viability of certain plans will depend on types of assets you own, their tax attributes and your wealth transfer time horizon, which is why CLA encourages clients to develop a team of advisers to help them.

Two spouses with less than $14 million in net worth estate:
• Fund 529 plans

• Annual giving

• Charitable giving

• Fund a grantor trust

“With these estates, they probably have enough lifetime exclusions to shelter from the estate tax,” he says.

Two spouses with $14 million to $28 million in net worth estate:
“This is definitely an estate size that I would say we need to have a plan in place,” he says. “We need to know what we’re going to do, if certain outcomes come to pass. An estate of this size would realistically have to give up all their assets to be able to shelter their entire estate.”

Some ideas include:

• Gifting without gift splitting

• Life insurance trusts

• Use discountable assets

Two spouses with more than $28 million in net worth estate:
“Once we’ve gone through and done some really good planning using lifetime exemptions to the greatest extent possible, we’re going to turn up the heat,” Frank says. “There’s interesting things that happen for taxpayers of this estate size, and some opportunities they may not normally be comfortable with.”

He gives three tools as examples:

1. Prepaying gift tax, instead of paying estate tax, typically results in a lower amount of tax being paid. Frank gives the perspective that it represents a significant opportunity to reduce future estate tax.

2. For clients with existing grantor trusts, get the trustee of those trusts to generate taxable income. The taxable income created in the grantor trust is taxed back to the grantor.

3. Sell assets to grantor or non-grantor trusts.

“Today is the day. Yesterday would have been better,” Frank says. “Form the team, define the plan. You’re on the clock.”

Farm Management New Year’s Resolutions for 2025

Fri, 29 Nov 2024 14:00:00 GMT

We asked past Top Producer award winners to share what’s new for them in the coming year. Here are some of the responses they shared with us:

“For the first time, we planted all our acres going to corn or soybeans next year to a cover crop. It is not the first time we have planted cover crops, but it is the first time we have done that many acres.” ~Bill Came
“We are hiring more people for the same amount of tractor seats. We are scheduling much better. We do this for two reasons — younger employees don’t want to work as much as they used to. Most used to work six days a week 10 years ago and now they are happy with four days a week. The second reason is ag overtime has passed in Oregon, so in order to manage overtime, we manage hours.” ~Shelly Boshart Davis
“We are continuing to expand the intensity of revenue acres by converting more conventional acres to organic production.” ~Pat Duncanson

“We’re going to reduce our soybean acres and increase our corn, winter wheat and cow-calf operation with these acres. We feel this will increase profitability.” ~Kelly Garrett
“I want to do a better job of promoting the extremely nutritious vegetable (yes, a vegetable) we call a potato, whenever possible. When choices appear relating to the value of spending time at work or with family, personally, I really need to do a better job of prioritizing, and therefore choosing, family time. After all: which one is more important?” ~Gregg Halverson
“For the first time in 39 years, I want to sidedress nitrogen on all of my corn acres.” ~April Hemmes

“Things that we need to do next year are straight out of the Danny Klinefelter playbook. We will focus on controlling cost in a high inflation/low price world. We’ll look for money under rocks — diversify revenue streams. We’ll leverage technology and new practices to become more efficient. It’s time to manage debt carefully in a high-interest environment, and it’s time to plan for the long term. This is a valley, don’t lose focus on the long-term plans of the operation.” ~Jeremy Jack
“I will physically and mentally execute and implement a succession plan for our farm to transition to the next generation.” ~Pam Johnson
“My resolution is that if you want to sell things at my farm, you need to reduce pricing by 15%. For those who say that is too sharp a cut, I say “try on my boots.” Price increases were easy on the way up. Now it’s time to reduce or be replaced.” ~Ben Riensche

“We’re going to buckle down and conserve operating cash and be conservative with inputs in anticipation of Trump tariffs negatively impacting our markets and prices like his last administration. We are considering replacing some aging storage and increasing our capacity. There are no plans to update equipment; just keep what we have operating. We will probably increase our vegetable acres in anticipation of low grain prices.” ~Jennie Schmidt
“We purchased life insurance and invested cash in a flex plan, so we can cover and service the debt if I am not around.” ~Trey Wasserburger

How To Leverage The 0% Tax Bracket

Wed, 27 Nov 2024 12:00:00 GMT

There are many situations where farmers can sell assets they have held for over a year and owe no federal income taxes on the gain.

Capital gains that are taxed in the old 15% tax bracket are actually taxed at a zero rate. For 2025, single taxpayers hit the top of this tax bracket at $48,350 of taxable income. Married couples top out at twice that amount, or $96,700.

Remember, these taxable income numbers are after itemized deductions or your standard deduction. The standard deduction for 2025 increases to $30,000 for a married couple, which means a farm couple could have long-term capital gains of $126,700 and owe no federal income tax (assuming they have no other income).

This can have great planning opportunities.

First, if a farmer has a C corporation and a personal income that is low for the current year, then paying a dividend from the corporation makes sense because the divided will be tax free. Plus, the corporation does not even need to pay out any cash. It can instead elect to distribute a “deemed” dividend, which is simply a paper entry to debit dividend and credit paid in capital. This also has the result of increasing the tax basis in the corporate stock, which can be helpful if the corporation is liquidated or converts into an S corporation.

Capital Gains Planning Example
Jim and Sara estimate their taxable income for the year will be about $50,000. Their corporation issues a deemed dividend to them of $75,000 because they would like to keep the cash in the corporation for operating purposes. They can also elect to pay a cash dividend to themselves and then loan the proceeds back to the corporation. This income added to their personal return will be taxed at zero for federal income tax purposes. They will pay state income if their state has such taxes.

Another option involves selling stock investments at a gain if you know the gain will be tax-free. There is a rule against repurchasing stocks within 30 days if you have sold the stock at a loss, but in this case, you are actually locking in long-term capital gains to be taxed at zero. The worst that can happen is you might be out a little bit of a bid/ask spread on repurchasing the stock if you use an online no-commission company.

Selling Assets Example
Andy and Gretchen estimate their taxable income at zero. They were early investors in Tesla and elect to sell Tesla stock that generates a long-term capital gain of about $125,000. They decide to not repurchase Tesla but will elect to use it as working capital for their farm operation. This gain will be tax-free at the federal level.

The bottom line as you do your tax planning at year-end is to review any assets you have held for at least a year to determine if your taxable income remains in the 15% tax bracket. If so, you might want to consider selling all or part of that asset to lock in tax-free money (at least at the federal level). Or, if you have a C corporation, always review that each year to determine how much of a tax-free dividend you can pay out.