Rutgers New Jersey Agricultural Experiment Station [Later Life Farming]

Module 8b: Farm Transfer Brainstorming Worksheet

As farmers get older, the issue of farm transfer takes on increasing importance. While a small minority may describe plans to "work until I drop and let someone else worry about it," most farmers recognize the need for, and benefits of, proactive planning. Generally, there are several viable options to consider, each with its advantages and disadvantages.

A variety of factors impact farm transfer decisions including income and estate taxes, current economic conditions (e.g., interest by developers in farmland), availability of family members to continue farming, a farm owner's desire to continue working, and a farm owner's need for a regular income stream, to name just a few.

Among the options that farmers may have for farm transfer are:

  • Selling farmland to a family member
  • Selling farmland to another farmer
  • Selling farmland to a developer or other commercial entity
  • Selling shares in a family farm corporation
  • Gifting farm assets to family members in accordance with federal gift tax rules
  • Renting farmland to a family member
  • Renting farmland to another farmer
  • Grooming someone outside the family to take over the farm
  • Selling the development rights and then transferring the farm

Use the Farm Transfer Brainstorming Worksheet to identify the advantages and disadvantages, for you, of at least three farm transfer options.

Farm Transfer Brainstorming Worksheet

Sell farmland to a family member

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sell farmland to another farmer

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sell farmland to a developer or other commercial entity

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sell shares in a family farm corporation

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gift farm assets to family members in accordance with federal gift tax rules

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent farmland to a family member

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent farmland to another farmer

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Groom someone outside the family to take over the farm

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sell the development rights and then transfer the farm

Advantages

Disadvantages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Online Resources

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