News

Generational transfer of wealth a major challenge for farmers

The president of a company specializing in ag real estate says the generational transfer of wealth is becoming one of the biggest challenges for farmers.

Doug Hensley with Hertz Services, based in central Iowa, tells Brownfield the money required to operate a farm today is much greater compared to previous generations.

“I looked at some numbers from the U.S. Ag Census 30 years ago, and the number of young people at that time that were involved in agriculture compared to now. And just the ownership of farmland from people that were under 55, was pretty significant 30 years ago.”

He says there’s no silver bullet that solves how young people can successfully transition into ownership of farm businesses and farmland in general.

“And I think, structurally, it’s going to be dealt with on a case-by-case basis.  Each farm family is going to work through that on their own.”

Institutional ownership in parts of the Midwest, like Farmland Partners, is allowing shares of their company to be exchanged for actual farms.

Hensley says these transactions are fairly new and provide some liquidity for those looking to change their farm ownership structure.