Farm Succession Research, Trends and Programs in Wisconsin Joy Kirkpatrick, Outreach Specialist, Center for Dairy Profitability

Agenda for the hour Farmer Retirement & Farm Succession Survey Implications –Rural communities –Extension Farm Succession programs in WI –Extension programs –Other programs

Farmer Retirement & Succession Survey International FARMTRANSFER Succession survey – ISU Beginning Farm Center Similar studies in 7 countries and 8 states Why important to learn retirement & succession plans?

Farmer Retirement & Succession Survey

Two populations surveyed –Brucellosis Ring Test list All dairy herds in Wisconsin –Farm Service Agency Anyone who received any type of FSA payment Eliminated – duplications between the two mailing lists –FSA addresses w/ zip codes outside of the 4 county area

Farmer Retirement & Succession Survey Design –Mailing –Media 589 viable responses (23% response rate) BRT list – 26% rate vs FSA – 17% rate Compared to US Census where possible Non-response bias tests

Farmer Retirement & Succession Survey Survey design –General farm information –Demographic information –Retirement plans Retire? Retirement age? Who have you talked to about this? Moving from current residence? Retirement income sources? Successor?

Farmer Retirement & Succession Survey Respondents Profile –Average age – 54 years Ranged from 21 to 93 years old –90% male –67% dairy enterprises; 18% beef Average #milk cows = 80 cows Own an average of 375 acres; rent on average another 280 –69% sole proprietorship; 17% partnership; 7% LLC/LLP

Farmer Retirement & Succession Survey

A. If you are retired or plan to retire you will provide neither managerial control nor labor to the farm B.If you are semi-retired or plan to semi-retire you will provide some managerial control and/or labor to the farm C.If you never retire you will maintain full managerial control and provide some labor to the farm

Farmer Retirement & Succession Survey

Checked Not checked

Farmer Retirement & Succession Survey Checked Not checked

Farmer Retirement & Succession Survey

BRT only – 67% BRT only – 10%

Farmer Retirement & Succession Survey Decisions/Responsibilities shared –Day to day –Physical labor –Employee management –Long-term decisions –Negotiations/Marketing –Financial management & record keeping –Age of successor a factor?

Farmer Retirement & Succession Survey Estate Planning Preference for inheritance of –Farm land –House –Other assets

Farmer Retirement & Succession Survey

Open-ended questions –What will you miss –What will you be happy to give up –Primary barrier to planning for succession

Farmer Retirement & Succession Survey Implications of findings for: –Agriculture in southwest Wisconsin –Extension programs

Farm Succession Programs One-day workshops –Build awareness –Call it Estate Planning and they come out of the woodwork! Three-day workshops –AgVentures – build in some strategic planning exercises –Commitment, more than one generation needed at workshops

Farm Succession Programs Four-day workshops – Returning to the Farm –Modeled after ISU and UN-L –Target audience seems to be key Junior & Seniors in College –UW-Platteville –UW-River Falls

Farm Succession Programs RTTF - Agendas November/February –Strategic planning –Financial Analysis –Communications –Taxes –Business Arrangements –Treatment of Heirs –Breakout sessions vs. all in same room

Farm Succession Programs Returning to the Farm Evaluations –End of Session for both UW-P and UW-RF –Nine month follow-up evaluations Decisions made or action steps taken on succession plan Before/After workshop questions Comments

Farm Succession Programs Future programs, projects Next Returning to the Farm – changes How do we reach those farms with 41 – 50 year old successors?

Questions, Discussion?

Joy Kirkpatrick Outreach Specialist UW-Center for Dairy Profitability