Farm Land Ownership and Transitions: Maximizing Succession and Minimizing Liability
Milton, DE|Nov 28, 2023
What vehicles/entities are the most effective for farm land ownership in a farming operation that is transitioning from a family farm to a non-family farm? Successive “generation” of employees are a combination of grandson, ex-son-in-law, and stepson of three brothers (previous generation). An LLC is the impetus of the operation and owns equipment/payroll/management and has leases on all non-owned ground and an LP protected by trusts holds all owned ground that is used by the operation.
Considering setting up an LP with the next generation, but concerns exist with potential for conflicting interests in the future/future generational transfer issues etc. is individual ownership more prudent? How to limit liability without jeopardizing future succession?
Answers (2):
Nov 29, 2023
Being responsible and recognising the culture that brings everyone together at a place and look how we are benefited, cultural farming makes strong relations, healthy working lifestyle. Looks obsolutely great.
Nov 28, 2023
Farm structures are the second or third step in the process.
Think of the succession triangle. Bottom left is the plan/vision/ rules. Top the governance and bottom right is the operation and cash flow generator.