1. Using Trusts Farmland Ownership Agriculture’s Future…Manage it Today National Farm Business Management Conference Michael Duffy, Iowa State University Ed Cox, Drake University Ag. Law Center June 10, 2013

2. Outline Acknowledgements Objective of the study Iowa trusts Future work

3. Acknowledgements Funding –Leopold Center at ISU –College of Agriculture & Life Sciences at ISU –Iowa Chapter of Am. Society of Farm Managers and Rural Appraisers Information & their time –Iowa Trust Association –Iowa farmland owners

4. Objectives To determine the extent and nature of farmland ownership by trusts in Iowa Determine the effects of public policy on the expansion of ownership by trusts. Determine the legal obligations of, and remedies available for, trust parties in relation to the sustainability of trust assets and develop potential state policies that help ensure compliance with fiduciary duties relating to sustainable land management.

5. Methodology Internet survey of members of Iowa Trust Association; –29 responses; unsure of exact representation for the survey; 25 had trusts that included Iowa farmland; Added questions to the Iowa Farmland Ownership survey; every 5 year survey of Iowa farmland ownership by ISU; telephone survey using 40 acre tract as unit of sample; most answers are as a percent of farmland not people

6. Iowa Farmland Trusts

36. Observations Trustees tend to represent multiple owner trusts whereas the majority of farmland reported to be in trusts was single owner or owned by a couple Tax avoidance and estate planning are strong reasons for using a trust but limiting children’s ability to sell or change is also noted

37. Observations Most trusts were established in Iowa and there are primarily elderly and female owners Most trusts are set for one generation The increasing use of trusts appears to be slowing For most landowners taxes are not the major consideration in whether or not to keep their farmland

38. Observations Conservation and sustainable agriculture practices are almost totally absent from trusts Trustees believe this is a duty This is an area for Extension and further research as the use of trusts continues to grow