1. Farm Business Succession Transition Tools and Tough Talks Dr. Shannon FerrellDr. Rodney Jones Oklahoma State University Department of Agricultural Economics Assistant Professor, Agricultural Law Oklahoma State University Department of Agricultural Economics Associate Professor, Agricultural Finance

2. Why should I care? 55% Percentage of U.S. adults with no estate plan in place

3. Overall Population Age Distribution Source: U.S. Bureau of the Census, Age and Sex Distribution 20120 Census

4. Iowa Farmland Ownership by Age Source: Iowa State University Extension (Duffy and Smith, 2008) 55%

5. Challenges for the Aging Farm Owner

6. Why should I care? Founding Generation Second Generation Third Generation Fourth Generation 30% 12% 3%

7. Elements of Transition FounderSuccessor

8. Elements of Transition Founder On-farm heir Off-farm heir Unrelated Successor Liquidation / Dissolution Ownership Control Participation Separate Entity

9. Elements of Transition Founder On-farm heir Off-farm heir Unrelated Successor Liquidation / Dissolution Ownership Control Participation Separate Entity

10. Elements of Transition Founder On-farm heir Off-farm heir Unrelated Successor Liquidation / Dissolution Ownership Control Participation Separate Entity

11. Business Entities

13. Transactional Tools

15. Perspectives for the closely-held farm business Family Legacy Business Assets

16. Barriers to Implementation Communication Equitable considerations –Farm kid / city kid –Sweat equity Willingness to transfer

17. Conclusions Producers, we can transfer it. We have the technology. Do producers and professionals understand the tools and their impacts? Are producers willing to engage in true transitions?

18. THANKS! Dr. Shannon L. Ferrell OSU Department of Agricultural Economics shannon.l.ferrell@okstate.edu