Disagreements over who should inherit the family farm can create lasting divisions between siblings, strain relationships with parents and, in some cases, make family gatherings nearly impossible.
In the latest episode of Surviving the Family Farm, a Rural Radio Network podcast, three experts address questions from farm families struggling with succession planning, inheritance decisions and communication.
One listener describes a family farm and ranch owned by aging parents, with four siblings, two involved in the operation and two who are not. A sibling who has worked on the ranch for years believes the land should be handed over to them.
The situation has deteriorated to the point that family members can barely gather for holidays. The listener worries about protecting the parents while navigating disagreements over the operation’s future.
Craig Burnside, a consultant with PrairieFire Consulting, said rebuilding trust would be essential before the family could begin resolving its differences.
“Reasonable people will generally do reasonable things,” Burnside said.
He suggested bringing family members together to identify the issues creating the greatest frustration and working through those problems individually rather than attempting to resolve everything at once.
Dr. Tom Field, a University of Nebraska-Lincoln professor and director of the Engler Agribusiness Entrepreneurship Program, said families facing that level of conflict may need outside assistance.
“Rules of engagement are critical for these kind of conversations,” Field said.
Field suggested that counseling may help families recover from past disagreements, while coaching can help them identify what they want for the future.
Attorney Spencer Hartman of Rembolt Ludtke emphasized that parents who still own the farm have an opportunity to establish their wishes and communicate those decisions before their deaths.
He also pointed to estate planning tools, including trusts, that can help carry out those decisions.
Starting the conversations farm families avoid
Another listener asked how families can move beyond everyday discussions about fertilizer, irrigation repairs and other operational decisions to address the more difficult questions surrounding succession.
Field said families often avoid long-term planning because those discussions force them to confront uncomfortable realities, including mortality and the possibility of giving up control.
He encouraged families to establish shared values, a vision and a mission before tackling individual succession decisions.
Burnside recommended regularly scheduled family meetings focused on finances, management responsibilities and long-term estate planning.
The panel agreed that succession planning requires more than a single family meeting.
“The procrastination is the killer of family business,” Field said.
Is a 20% family discount on farmland fair?
The episode also examines a question from a farmer whose elderly in-laws want to sell a home quarter and building site to the farming family at a 20% discount from market value.
Other family farmland has been or will be placed in an irrevocable trust for the daughters, but the proposed discounted sale has created tension among family members.
The farmer wants everyone involved in a family meeting before proceeding and asked what information should be shared ahead of that discussion.
Hartman recommended providing family members with relevant trust documents, farm financial information, property appraisals and details about potential tax consequences.
The panel also encouraged families to consider why parents want to make certain decisions and whether everyone understands those intentions.
“Don’t let perfect get in the way of good,” Hartman said.
Surviving the Family Farm is produced by the Rural Radio Network with support from the Nebraska Soybean Board.
Farm families can submit questions for consideration in future episodes at RuralRadio.com/ask
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