What is succession planning, exactly?
Succession planning is a process, not a single document. It answers questions such as who will manage the farm, who will own it, how and when ownership and control will change, and how everyone involved will be treated. It also plans for the unexpected, such as illness or death.
University extension programs often split it into two parts: the business transition, meaning management and operations, and the estate plan, meaning how assets pass on. Both matter, and they work best when planned together.
A helpful way to think about it is as three questions: who runs the farm, who owns it and who looks after the people who are stepping back. Each question has its own answers, and they can change at different times. Separating them often makes the whole task less overwhelming.
What are the main parts of a plan?
Most plans include goals and values, a description of the current operation, a decision about who will take over and when, a financial plan for the retiring owners, a legal structure for ownership and a way to handle assets that go to people who are not farming.
A plan also needs written records and a timeline. Something as simple as a list of tasks, who is responsible and target dates can keep a long process from stalling.
- Goals for family, farm and retirement
- Who will manage and who will own
- Financial security for the retiring owners
- Fair treatment of all heirs
- Legal documents and records
Why do so many families put it off?
Planning forces uncomfortable conversations about money, aging and fairness. It can feel like admitting that time is passing. Busy seasons and day-to-day work give an easy reason to postpone.
The cost of waiting is high. Without a plan, decisions are made in a crisis, family tensions can surface at the worst time and the farm may have to be sold on someone else's schedule. Even a basic plan written now is better than none.
If a conversation stalls, narrow it. Instead of settling who inherits everything, start by agreeing on what the farm should look like in five years. Small agreements build the trust needed for the harder ones.
What mistakes should I watch for?
Common mistakes include assuming everyone knows your wishes, naming a successor without asking whether they want the job, ignoring non-farming heirs, relying on a handshake and treating the plan as finished once it is written.
Another mistake is copying what a neighbor did. Their tax situation, state and family are not yours, and a plan that worked for them could fail for you. Get advice that fits your circumstances.
Who helps with succession planning?
Look for an attorney who handles agricultural and estate matters, an accountant who understands farm taxes, a lender who knows the operation, an insurance agent and an extension or farm business educator. Some state agriculture departments and universities also offer workshops and guides.
Penn State Extension, Cornell Small Farms, Purdue Extension and other universities publish succession planning material that is free to read. Use it to prepare your questions before meeting professionals.
Ask each adviser what they need from you and what they will deliver. A clear division of responsibility prevents gaps, such as a will that conflicts with how a farm company is owned, and keeps costs under control.
How do I begin this month?
Start small: write down what you want for the farm, for yourself and for your family. Gather key documents, such as deeds, leases, loan papers and insurance policies. Then pick one conversation to have with the family.
Contact your county extension office to ask about local workshops or advisers. Set a date for a first meeting with an attorney. Progress counts, even in small steps.
- Write down your own goals first
- Gather deeds, loans and insurance in one place
- Schedule one family conversation
- Book a first meeting with an attorney
How often should the plan be reviewed?
Plans go stale as families, markets and laws change. Review yours at least once a year and after any major event such as a death, a marriage, a birth, a divorce, a purchase or a change in health.
Keep a short summary where trusted people can find it, and update it when something changes. The aim is not to freeze the future but to keep everyone informed.
Key takeaways
- Succession planning covers management, ownership, retirement income and fairness together.
- A simple written plan now beats a perfect one never made.
- Do not copy a neighbor's plan; get advice that fits your state and family.
- Review the plan every year and after major life events.
Sources and further reading
Last reviewed: November 12, 2026. Written by the Rural Farm Life Editorial Team. See our editorial policy.