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Deciding What to Do With the Farm
By
Laura Skillman
 COLUMBUS,
Ky., (Nov. 22, 2006) – One in 10 farms in Kentucky are operated
by women; some have long been active managers and others
suddenly find themselves responsible for the farm when their
spouses die or are disabled. Recognizing the difficult position
in which some women may suddenly find themselves, organizers of
a recent Women in Agriculture meeting at Columbus-Belmont State
Park made it one of the main topics on the agenda.
“Men die younger than women so typically what happens is the
wife is left to manage the farm,” said Suzanne Badenhop, family
resource management specialist with the University of Kentucky
Cooperative Extension Service. “Some may know what to do, some
may not.”
Equipping women with the information needed to transition from
farm wife to farm owner or operator just makes sense, said Sara
Bogle, Fulton County Extension agent for family and consumer
sciences.
“We think people are kind of lost when a spouse or parent dies
and they are left to make decisions, so we thought this group
needed the information,” Bogle said “We hope this arms them with
some information so they can make wise choices.”
Badenhop’s message was aimed at women but can be used for anyone
as they consider how to transition the farm. Making plans to
transition the farm when a parent dies or when a couple retires
is also important but is often put off until there is no time to
plan. Preparing for this inevitable time can not only ease the
stress involved but can also give the next generation the peace
of mind in knowing what will become of the farm.
“Everybody should have an estate plan, and if you own a farm or
are going to inherit a farm you need to communicate so there are
no surprises, and (inheritors) know what is coming,” Badenhop
said. “Whatever your plan is, you need to think it through and
make sure it meets your goals and what you want done.”
Badenhop said some things to consider are: Who will manage the
farm? Are you going to farm it or rent it to someone else to
farm? Do you want to sell it? If you sell, what are the tax
consequences? Are there other heirs that could force you to
sell? Does a child plan to take over the farm?
Many of these questions can be answered before someone is left
to make these decisions on his own. Farmers can turn to
attorneys, accountants, financial planners and Extension
personnel to help them manage their farms today and as they look
to transition it to someone else.
Talking to these professionals can help ensure that heirs who
remain on the farm and off-farm heirs are treated fairly without
being forced to sell. Some options can include taking a life
insurance policy to provide an inheritance for off-farm heirs
while deeding the land to the one who remains on the farm.
Gifting of the land in increments can also be an option that can
be discussed with professionals. Additionally, these
professionals can help farmers understand and reduce possible
tax implications of transitioning the farm.
For spouses or anyone who inherits a farm and decides to keep
farming, Badenhop said it is important to get to know the local
Farm Service Agency, which handles a variety of federal farm
programs, and local Extension professionals. |
Contact: Suzanne Badenhop, 859-257-1812
Sara Bogle, 270-236-2351 |
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The UK College
of Agriculture, through its land-grant mission, reaches across
the commonwealth with teaching, research and extension
to enhance the lives of Kentuckians. |
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Copyright © 2001-2006 University of Kentucky, College of Agriculture,
Kentucky Cooperative Extension Service |
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