Farm Succession Planning

Farm Succession Planning Attorney

Will the Farm Stay in the Family?

Farms are abundant in New Jersey, in part thanks to the hard work and handshakes of generations who lived before, in simpler times. Unfortunately, the days of “handshake deals” are behind us. Charming, historic agricultural buildings are costly to maintain. Siblings spread out and relocate, resulting in fewer next generation farmers. Assets are largely tied up in land and equipment. And commercial activities on farms are regulated. Farmers may sell their development rights to reduce taxes and obtain cash. Even with reduced taxes and cash, farmers need both a business plan for generating adequate income and a succession plan for transfer of the farm upon retirement and/or death.

Agricultural Planning

Estate, business, financial, and land planning each play a role in proper business and succession planning. The State of New Jersey, State Agricultural Development Committee, maintains an online library of information on the topics of Farm Transfer, Succession, and Retirement Planning. The issues raised and questions to ask can be overwhelming. Additionally, it is important that financial and legal decisions are customized to each family’s specific priorities, concerns, and realities. Attempting to keep a farm in the family may be driven by certain factors which, without a plan, will result in a forced sale of the farm. The long-term needs of the landowners and their family may shift over time, requiring an understanding of how an existing estate may be compromised.

Similarly, business and land planning are an important factor in keeping the farm profitable for both present and future generations. Ideally, these factors will be considered when preserving farms. Public markets and events, agritourism, and traditional farming all coexist throughout New Jersey, subject to Right to Farm limitations, possible Highlands restrictions, environmental and building codes, and more. Business best practices should be followed as well, including limiting liability, adequate insurance, and compliance with lender and insurance requirements. Farming is now occurring in a more complex legal environment.

Invest in the Future of the Farm

Attorney Nicole L. Voigt provides comprehensive services to farmers. She advises on agribusiness, land transactions, leases versus licenses, preservation, zoning, Right to Farm, asset buy/sell, due diligence, property disputes, and similar issues affecting farmers. Ms. Voigt provides holistic advising to clients and is proud of the many families she has served. Contact Voigt Law, LLC to discuss your agricultural planning needs.