Can the Farm Survive after I’m Gone? The Solution to Succession

When it comes to planning for the next generation on the farm or ranch, rural families across the nation are facing more challenges than ever.

Approximately seventy percent (70%) of farms and ranches won’t pass successfully to the next generation. While numerous obstacles stand in the way of effective transfer between generations, the largest obstacle is failure to plan because farmers and ranchers often struggle with the difficult decisions required to ensure the longevity of their operations. 

In agriculture, despite being constantly pondered, estate and succession plans are sparsely discussed and rarely implemented. The failure to plan is rooted in a variety of factors.  Agricultural operations present unique complexities because the family farm, in reality, is often a web of the business interests, operational concerns, assets, liabilities, responsibilities, and family relationships and expectations.

The Business

At its core, the family farm is a business. In agriculture, a  traditional business model typically consists of two circles: the business circle and the ownership circle. The business circle includes the individuals who provide the labor and management necessary to operate the ranch on a day-to-day basis.

The ownership circle, on the other hand, represents those who legally own the assets that allow the business to function, such as land, livestock, equipment, and property.

Family ranches often introduce a third element into this model: family membership. In these operations, ownership is not always determined solely by participation in the business. Instead, the family must decide how family status affects the opportunity to own part of the operation.

More and more, one individual is staying on the “home place” to run the family farm or ranch, while the rest of the family moves to town to pursue “off-farm” careers.

The Right to Own

Should I leave the family farm to all of my children equally? This question lies at the heart of succession planning for many farms and ranches. Founders or current owners must decide what criteria determine whether their children/partners/spouses have a “right” to own the operation based on their familial relationship alone. For example, if a child is not currently involved in the ranch’s daily operations, should that child still have the opportunity to become an owner simply by virtue of being part of the family?

These decisions force families to consider whether ownership is viewed as an entitlement tied to family status or as an opportunity earned through labor, commitment, and investment in the business. Some families believe every child should share ownership regardless of involvement, while others require participation in the operation before granting an ownership interest.

There is no one-size-fits-all solution, but recognizing these distinctions early can help families structure a succession plan that balances fairness, family relationships, and the long-term viability of the ranch. Careful planning and open communication can help ensure the operation continues successfully for generations to come.

Planning for Succession

Farm families spend their days doing the work they love–raising crops, working cattle, and building something meaningful for the next generation. But too often, succession planning gets pushed aside because it feels uncomfortable, complicated, or less urgent than the daily demands of the operation. The reality is that too much is at stake to leave the future of the farm to chance. Most farms do not fail in transition because of taxes alone; they fail because there was no clear plan, no communication, and no alignment about what comes next. If you want your operation to remain productive, profitable, and in the family for generations to come, the time to start planning is now, not when a crisis forces the issue.



Sources:

Wilson, Mike. “Why Farms with No Transition Plan Often Fail.” Www.farmprogress.com, 20 Nov. 2023, www.farmprogress.com/farm-futures-business-summit/why-farms-with-no-transition-plan-often-fail.

Tucker, Wesley. “Love vs. Legacy: Why Succession Planning Stalls on Family Farms.” Farm Progress, 23 Feb. 2026, www.farmprogress.com/farm-business-planning/love-vs-legacy-why-succession-planning-stalls-on-family-farms?utm_rid=CPG02000193034863&utm_campaign=105355&utm_medium=email&elq2=0e360987ccfc476fb6f157aa16f0a900&sp_eh=c3e2d8144d1a75849e5810f5a99d192625ff8916a934f926f9b862344210d571. Accessed 9 Mar. 2026.