Succession Planning for Regenerative Futures
A farm succession plan is a plan for transferring ownership of a farm, which may include land, equipment, livestock, and equity, to the next generation. It can also include transferring skills, knowledge, and labor.
Farm succession is a critical juncture for the future of a family’s land, and a critical point in time for evaluating regenerative practices. This article will explore the opportunities and risks that arise at this juncture, and offer resources to help farmers and ranchers ensure a successful transition, allowing them to secure a just and regenerative agricultural system for generations to come.
Succession Needs Are Growing
Farm succession planning is about more than just handing over the reins to the next generation; it’s about securing the legacy of the land, the livelihood it provides, and the community it supports. With over 40% of the nation’s farmland owned by people over 65, 400 million acres of farmland are set to change hands in the next couple of decades. At the same time, fewer farmers and ranchers' children are choosing to continue the family tradition, opting for careers outside of agriculture. The result of these trends to date has been that many family farms are being consolidated into larger farms, with 7% of farms lost through consolidation from 2017-2022, sold to non-farm developers, with 11M acres of farmland being sold to non-farm uses between 2001 and 2016, or acquired by investment firms.
It’s clear that thoughtful succession planning is more important than ever.
By taking proactive control of their land’s future, farmers and ranchers can secure a future for farming while also securing a legacy that benefits farmers’ families, rural communities, and the earth.
Before exploring options for successful succession, it’s worth exploring some of the risks of poor succession planning.
Loss of the Farm: Without a clear plan, the farm may need to be sold to cover estate taxes, debts, or other financial obligations. This is especially true if the farm's value is high but liquidity (cash) is low, which can force heirs to sell the land or other assets to meet tax or inheritance requirements.
Loss of Expertise and Knowledge: If the transfer of management responsibilities is not gradual and structured, valuable knowledge about farm operations may be lost. The outgoing generation may fail to pass down important skills, relationships with suppliers and customers, and knowledge about the land and business.
Business Disruption: Without a smooth transition, the farm’s operations may suffer. A lack of clarity about roles, responsibilities, and decision-making authority can lead to confusion, mismanagement, or delays, which may hurt productivity and profitability during the transition period.
Missed Opportunities: Failure to plan for succession may cause the next generation to miss opportunities to modernize the farm, adopt new practices, or access funding and grants. A well-prepared succession plan can position the farm for future growth, but poor planning can leave it stagnant or struggling to adapt.
Estate Tax Liabilities: In many cases, farmland and farm assets have significant value, potentially triggering estate taxes. Without planning, heirs may be unprepared to handle these tax liabilities, leading to the need to sell assets or even portions of the farm to cover the costs.
Adopting Regenerative Practices During Farm Succession
Succession also provides a critical window for shifting practices. Passing down and incorporating new regenerative farming techniques is crucial for preserving soil health, enhancing biodiversity, and building climate resilience. There are a number of ways to embed regenerative principles into farm succession plans, from ensuring the transfer of knowledge via proactive training and mentorship to integrating sustainable practices into farm management strategies. This can include creating detailed land management plans that prioritize soil health, biodiversity, and resource conservation, as well as setting specific goals for reducing chemical inputs and enhancing ecosystem services. Additionally, fostering partnerships with local agricultural organizations and institutions like your local NRCS office, cooperative extension, and technical service providers can provide access to resources, support, and networks that empower new farmers to adopt and innovate regenerative practices effectively.
Land succession is not only a juncture of vulnerability for our country’s farmland, it’s also an opportunity to proactively shape its future. By starting early and seeking guidance, farmers and ranchers can leverage the support of land trusts, local agricultural associations, and government programs to make planning easy, protect their legacies, and embrace the opportunity to create a more just and regenerative agricultural system.
Learn about farmers and ranchers who have successfully incorporated regenerative practices at the juncture of land succession, like Bloom Farm, a client of Propagate, and the Brandt Family.
Promoting Equity in Land Access
When discussing land ownership and succession in the United States, it is important to highlight considerations for equity in access. Inequitable land ownership in the United States has a long history, from the displacement of indigenous societies to widespread discrimination by the USDA. Today, while people of color make up ~70% of the agricultural workforce, they own only 2% of the land. Organizations providing comprehensive support for inclusive succession, like the Farmers Land Trust, are key to this opportunity.
Through Propagate’s work to plan and implement agroforestry, we have been able to connect with organizations that highlight what is possible when equity is prioritized alongside shifting regenerative practices to the land.
The Corbin Hill Food Project is a powerful example of what’s possible when people of color have equitable access to land. Founded by Dr. Dennis Derryck, Corbin Hill provides fresh, locally grown food to underserved communities in New York City while empowering Black and Latinx farmers through land ownership and economic opportunity. Propagate is supporting Corbin Hill with a 95-acre project in upstate New York that plans to leverage regenerative agroforestry practices that benefit both the land and the local communities. Through initiatives like this, Corbin Hill demonstrates how equitable land access can transform both rural and urban areas.
Taking Next Steps for Regenerative Transitions & Succession Planning
If you’re interested in learning more, reach out to us or Farmer’s Land Trust for support in navigating the journey and the resources available to you.
Propagate’s Farm Services team supports farmers and ranchers in building sustainable futures for their land through agroforestry. Our team, alongside our network of technical service providers and nursery suppliers, can work with you wherever you’re at in your transition.
Farmer’s Land Trust engages with farmland protection and land access for farmers by creating and supporting Farmland Commons - non-profit land holding entities that are local to place and controlled by local communities. Reach out to learn more about how succession to a Farmland Commons might work for your land.
