Farming is a very big part of Minnesota’s culture and history, and while the idea of passing on the family farm may seem like a thing of the past, more and more young people are becoming interested in revitalizing the industry and getting their hands dirty.
Lawyers are seeing those in their 20s and 30s having a renewed interest in farming. They are also seeing older children in their 40s and 50s leaving their careers to come back to the family farm. With this in mind, it is important for families to work with a lawyer to learn about the unique challenges of estate planning as it relates to a family farm.
For some families, the plan may actually be about farming, while for others it may be more about land ownership. There is often at least one child in a large family that is interested in selling the property instead of continuing to farm, and that needs to be taken into consideration.
With crop farming becoming more stable in the past few years and an expectation of improved livestock prices leading to better equity in livestock farming, Minnesota families may begin to discuss how they can continue to run their farm for generations to come. In the end, the vitality of a farm is in the hands of the next generation, making it especially important that families are informed when it comes to gift tax laws and farm exemptions and discuss all potential options before it is too late.
Source: Minnesota Farm Guide, “’Keeping the Farm in the Family’ seminar at Central MN Farm Show,” Andrea Johnson, Feb. 11, 2014