As the agricultural workforce evolves, many farmers are approaching the end of their careers.
After decades of tilling the soil, managing livestock, and overseeing farm operations, the question arises: What does retirement look like for those who have dedicated their lives to farming?
Planning for a fulfilling, financially secure retirement is essential for farmers, but it requires thoughtful preparation. According to Robert Moore, an attorney and research specialist for Ohio State’s Agricultural and Resource Law Program, early retirement planning is key to minimizing tax burdens and ensuring a smooth transition out of the business.
Moore, who has decades of experience helping farmers with estate planning and succession issues, emphasizes the importance of starting the process two to three years ahead of retirement.
“Farmers are often adept at managing their income by deferring sales and prepurchasing inputs,” he said. “But upon retirement, they may face a large tax bill if they haven’t planned ahead. By starting early, farmers can implement strategies that reduce tax liability and provide greater flexibility when exiting the business.”
The emotional challenges of retirement are also significant, Moore said. For many farmers, leaving the land behind can feel like a loss of identity.
“Most farmers don’t want to truly retire,” he said. “They want to transition from being the decision-maker to being more hands-on, perhaps just driving the tractor.”
Successful transitions require clear communication, especially when a successor is involved. Expectations should be outlined early to ensure a smooth handoff of responsibilities, whether the farm stays within the family or is passed to a trusted neighbor or colleague.
For farmers without a successor, Moore suggests exploring new opportunities, such as working for a neighbor or shifting to a new venture. Regardless of the route, Moore underscores the importance of assembling a strong team of professionals, including attorneys, accountants, and financial advisors.
“A good team can help farmers identify the best path forward, whether that involves passing the farm on to the next generation or transitioning to a new chapter in life,” he said.
As farmers approach the end of their careers, thoughtful planning is essential to ensure they can enjoy a well-earned retirement while securing the future of their farms.