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Farm Succession Research, Trends and Programs in Wisconsin

Farm Succession Research, Trends and Programs in Wisconsin. Joy Kirkpatrick, Outreach Specialist UW Center for Dairy Profitability. The next 30 minutes. Wisconsin stats on farmer retirement & succession Farm Succession programs in Wisconsin Farm Succession Resource Website

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Farm Succession Research, Trends and Programs in Wisconsin

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

  2. The next 30 minutes • Wisconsin stats on farmer retirement & succession • Farm Succession programs in Wisconsin • Farm Succession Resource Website • Farm Succession Assessment Tool

  3. Farmer Retirement & Succession Surveys • Retirement Survey – 2004 • 73% not retiring or only semi-retiring • Of those retiring 60% staying in the home on the farm • 63% have not identified a successor • Income will come from sale of assets or income from farm • If no identified successor – divide farm assets equally

  4. Farmer Retirement & Succession Surveys • Succession Survey – 2009 • Structure, ownership, labor, management (how many generations) • Who helped with the plan • How long to implement • How assets have been/will be transferred • Challenges • Priority objectives • Satisfaction

  5. Who helped with the process? • Identifying the need for a plan • Family members (33%) • Accountant (29%) • Providing information about succession plans • Accountant (38%) • Attorney (36%) • Educational conferences/meetings (35%)

  6. Who helped with the process? • Helped to set succession plan objectives • Attorney (32%) • Accountant (30%) • Family members (18%) • Development and writing of a succession plan • Attorney (51%) • Accountant (16%)

  7. Challenges to Succession Planning

  8. Chart 7. Satisfaction with Succession Plan Dissatisfied, 2% Neutral, 36% Satisfied, 62% Satisfaction with the plan

  9. Transferring assets • Real Estate • 33% transferred at time of death • 33% purchased • 17% gifted • Farm assets other than real estate • 39% purchased • 29% transferred at death • 14% gifted

  10. Priority Objectives of the Plan • Maintain the long term viability of the farm for future generations • Financial security of the older generation • Farm and/or farmland remain in the family

  11. 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

  12. Returning to the Farm • First Weekend • How Big is Your House? • What Do We Want? What Do We Need? What Do We Expect? What Do We Fear? • Legal Issues For Farmers • Tax Issues Regarding Farm Succession • Ag Law 101:Farm Business Arrangements • Communications 101 & 102 • Finance 102 • Homework Assignments • Second Weekend • Finance 201 • Realities of Transition Planning • Dealing with the 5Ds • Retirement Planning • Finance 202 • Putting it All Together into a Cohesive Plan

  13. Results • 40 families and just over 100 people have attended a Returning to the Farm workshop • Nine month follow-up evaluations • 100% indicated improved skills in strategic planning for succession • 79% indicated improved communication skills • 71% improved their financial analysis skills and knowledge on treatment of heirs • Comments

  14. Other Resources • One-on-One consulting • Agents/specialists teleconference • Farm Succession Assessment Tool • Farm Succession Resource website

  15. Questions, Discussion? Joy Kirkpatrick Outreach Specialist UW-Center for Dairy Profitability 608.263.3485 joy.kirkpatrick@ces.uwex.edu

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