How the Next Generation Can Start Farm Transition Planning

Passing a farm or ranch from one generation to the next can be challenging, but that’s all the more reason for families to make a plan. Jessica Groskopf, a Nebraska farmer and transition planning expert, offered tips for those starting the process.

Save up

Groskopf reported that 50% of the land that operators own is purchased from someone outside their family. As a result, she recommends that those looking to get into the family business start saving and investing early. The earlier they start, the more time those funds have to grow. She also recommends that families have a three-to-six-month emergency fund.

Use debt wisely

Groskopf emphasized not all debt is bad debt, which she defines as having high interest rates or being associated with unnecessary purchases. Other debt can help drive business goals forward if used strategically.

Rely on professionals

She also recommended young farmers and ranchers consult with financial pros to help them set and reach goals during transition planning.