Creating a plan of succession for a farm, ranch

After a farmer or rancher has spent a lifetime growing and operating their business, there comes a time when they must decide the future of their estate.
Jeff Tranel, an agricultural and business management economist with the Colorado State University Extension spoke for the Nebraska Center for Agricultural Profitability (CAP) about ways people can prepare themselves and their legacy.
Starting with some terminology, he stated that estate planning is simply inheritance. It is the disposition of property at the time of death. The problem he has seen is that most people only connect that with money.
“Very sadly, it is often fraught with legal hair-splitting,” he said. “With succession planning, it pertains to more of a somewhat orderly transfer of ownership and management of the business prior to one’s death.”
What he prefers is to use the term legacy as it captures all facets of life such as family traditions, individual values, accumulated wealth and a person’s impact on communities and industries.

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