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Estate Planning

Feb
25
2016

A Checklist to Farm Succession

By: Chris Zoller, Extension Educator, ANR, Tuscarawas County The cold winter months provide an opportunity to spend time thinking about your successor. Determining who will take over the management and ownership of your farm is not an easy or simple process, but one that takes time and planning.  Scheduling time to meet with your advisors (lender, attorney, accountant, veterinarian, Extension professional, etc.), family, and prospective successors is critical. Alan Miller and Craig Dobbins from Purdue University have developed the Planning for Farm Succession – Step-by-Step Checklist and Action Plan for Management Succession document.   Below is a summary of key points all farmers should consider when planning for the orderly succession of their farm business. Step One: Gather Information and Ideas and Discover Expectations Have you attended an introductory workshop/seminar to gather ideas? Have you read articles on farm succession planning? Have you discussed general succession issues with family, friends, advisors, and other farmers? Have you selected someone (family or non-family) to guide the process? Have you decided to involve/hire a facilitator? Have you identified professionals who can assist with the process? Have you completed a financial analysis of your business? Does it provide sufficient cash flow? Will it support the additional members? Will it be financially viable in the future? Have you evaluated family loving costs? How might...
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Jan
13
2016

Planning for the Future of Your Farm Workshops to be Held across Ohio in 2016

by David Marrison, OSU Extension Educator What does it take to successfully pass on the farm business to the next generation? It takes a lot of hard work, time and communication to make a successful management transfer. The Farm Transition Team of OSU Extension is pleased to be offering a series of workshops across Ohio to help farm families plan for the transition of their business to the next generation. This workshop will help farmers assess the future of the farm business, discuss developing the next generation of managers, communicate about farm succession, review retirement planning, plan for the unexpected, consider long-term healthcare costs, understand legal considerations of farm transition and discover ways to increase family communication. This workshop will challenge farm families to actively plan for the future of the farm business. In between session, farm families will be asked to hold critical family conversations to help identify planning areas that will need work to accomplish a successful farm business transition. Some of the key topics which will be addressed during the workshops include: Key questions to answer when planning for the future of the family farm business Family communication in the farm transition process Providing income for multiple generations Farm succession with multiple offspring and family members: Fair vs. Equal Retirement strategies Strategies to get my farm and family affairs in order Long term health car...
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Dec
18
2015

Farm Succession Workshop to be held in Medina County on January 21 & 28, 2016

Farm transition planning is the process by which the ownership and management of the family business are transferred to the next generation. Transition and estate planning helps farm families analyze the current farm situation, examine the future, and develop a plan of action for transferring assets and managerial control. Each farm is different in regards to the goal of transition, from passing farms onto the next generation or a new owner. There are family dynamics to consider, resources, finances, and managerial styles to consider.

The 2-day workshop will be held on January 21 and 28, 2016 from 9:00 AM to 3:00 PM at A.I.Root Candle Community Room, 623 West Liberty St., Medina, OH 44256. This workshop will help farmers assess the future of the farm business, discuss developing the next generation of managers, communicate about farm succession, review retirement planning and plan for the unexpected, consider long-term healthcare costs, understand legal considerations, and more. Pre-registration is required. Cost is $35.00 per person or $50 for up to 2 members of the same family attending together. Deadline to register is January 14, 2016.

To register, download the registration form at medina.osu.edu under events. For a mailed copy or for more information, contact Ashley Kulhanek, Agriculture and Natural Resource Extension Educator at 330-725-4911 ext.106 or Kulhanek.5@osu.edu.

Nov
19
2015

Farm Management School Teaches Small, Beginning Producers Farm Finances

  GREENVILLE, Ohio – Producers new to farming or those who operate small farms and ranches can learn how to create a business plan and develop a balance sheet from farm management experts with the College of Food, Agricultural, and Environmental Sciences at The Ohio State University. The 2016 Farm Management School, a five-session workshop series, will focus on the financial education that goes along with operating a successful farming operation, said Sam Custer, an Ohio State University Extension educator who is organizing the the program. OSU Extension is CFAES’s outreach arm. Although the farm management school targets those who are new to agricultural fields, any farmer, producer or agriculture-related industry person is welcome to attend, Custer said. The goal of the program, he said, is to help young and beginning farmers learn how to become financially savvy and how to make their agricultural operations successful. “The future of agriculture depends on the financial success of young and beginning producers, and the diversity of the agricultural products we enjoy depends in part on the financial success of small producers,” Custer said. “As baby boomers retire from farming, this is a good opportunity for the next generation to begin talking with their families.” With lower commodity prices and rising input costs, many young or beginning farmers along with some small farmers find it very difficult to budget a profit, he said. “W...
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May
22
2015

Study Points to Succession Planning Communication Barriers

By: Chris Zoller, Extension Educator, ANR

Over the years I have met with many farm families in barns, fields and around kitchen tables to discuss succession planning and all that it involves.  These can sometimes be very stressful, difficult and emotional visits.  Some families put off these discussions because the topic is one that many don’t like to consider.  However, planning and preparation will be beneficial to all family members involved in the farm business.

Faculty at Penn State University, California State University and Old Dominion University published in the Journal of Extension  the findings of a study they conducted of Pennsylvania farm families on the topic of farm succession planning.  Below is a summary of the research findings.

Introduction: In addition to growing concerns about how to meet the retirement needs of older farmers, it is disconcerting that few senior operators have decided how managerial control of the farm will be passed to a successor prior to their death. For example, of 106 farm operators studied in California, only half had identified a successor. A similar study of 400 Iowa farmers found less than a third had selected a transferee. The consequences of a failure to plan can be severe—if the farm is inherited by multiple heirs, inheritance taxes and other fees may cripple the farm...
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Feb
06
2015

Join the Ohio Women in Agriculture Learning Network

by: Gigi Neal, OSU Extension Educator, Agriculture and Natural Resources- Clermont County

According to the 2012 Census of Agriculture, 30% of operators are women on the national level. In Ohio, 28% of operators are female: 31,413 women of 113,624 total operators. Ohio’s largest concentration of female farm operators is in its 10 eastern counties, which boast more than 500 women farm operators per county.

The goal of the Ohio Women in Agriculture Learning Network (OWIALN) is to help women in agriculture improve their quality of life by providing them with resources to make better business decisions, while maintaining a balance with family and personal obligations.

This national initiative is developing a new portal for education, technical assistance and support of women farmers, ranchers and producers. The OWIALN shares the same goals and collaborates on programs with the eXtension Women in Agriculture Community of Practice at extension.org/womeninag.

Join us for educational workshops, eNewsletters, webinars and more. To join the Ohio Women in Agriculture Learning Network, contact coordinators Gigi Neal at 513-732-7070 or neal.331@osu.edu or Heather Neikirk at 330-830-7700 or neikirk.2@osu.edu. Visit our website at clermont.osu.edu or like us at Ohio Women in Agriculture Learning Network on Facebook.

 

 

 

 

Nov
26
2014

Big data and UAVs on the farm? Webinar will address legal issues

by Peggy Hall OSU’s Agricultural & Resource Law Program is pleased to announce its inaugural webinar, Big Data and UAVs:  Legal Issues for Agriculture, scheduled for Friday, December 12 at 1 pm.  This is the first webinar in the program’s new “Ohio Food, Agriculture and Environmental Law Webinar Series,” offering monthly legal webinars on issues of importance to Ohio agriculture. The webinar will feature John Dillard, an Associate Attorney with the law firm of Olsson Frank Weeda Terman Matz, PC in Washington, DC and a leading expert on legal issues with technology and agriculture.  With a background in agriculture and experience advising clients in the food and agricultural industries, Dillard will present a practical analysis of the legal issues raised by agriculture’s increasing use of large data sources and UAVs.   Dillard authors a blog, Ag in the Courtroom, on AgWeb.com and Legal Ease, a column in Farm Journal magazine. He has appeared on national television and radio agricultural programs to discuss legal issues that affect agriculture. Future webinars in the Ohio Food, Agriculture and Environmental Law Webinar Series will feature other national and state experts discussing legal issues of importance to Ohio agriculture.  Topics in the series will include: The 2014 Farm Bill: Guiding a Client through the New Law, with Bill Bridgforth of Ramsay, Bridgforth, Robinson & Raley LLP, Pine Bluff, Arkansas on Friday, January 9, 2015 at 1 pm...
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Jul
09
2014

Farm Transition, Estate and Retirement Seminar

By: Sam Custer, Extension Educator

Do you have a concrete plan in place to transition the family farm to the next generation? OSU Extension, Darke County will offer a Farm Transition, Estate and Retirement Seminar on Wednesday, August 6 in Greenville. This event is for all generations involved with the family farm.

The purpose of the program is to offer tools and education to farm owners who are preparing to transition the farm to the next generation. Topics include trusts, gifting, protecting farm and personal assets, federal estate taxes, insurance options, retirement income and security, family communication and much more.

Speakers include Robert Moore, Attorney, Wright & Moore Law Company; Todd Durham, Second National Bank and Sam Custer, OSU Extension Educator Darke County.

Seminar check-in begins at 8:30 am with the program scheduled from 9:00 am until 3:00 pm. Cost of registration is $15 per farm family and includes lunch and a resource notebook. The seminar is made possible with generous support from Second National Bank.

The program will be held at the Second National Bank Conference Room, 499 South Broadway, Greenville, Ohio 45331. Click here for the 2014 Transition Estate and Retirement Seminar Flyer 

Registration and payment is required by July 29. Registration forms are available online at www.darke.osu.edu.

Contact Sam Custer, OSU Extension, Darke County, for more information at 937.548.5215 or custer.2@osu.edu.

Dec
20
2013

Getting your Farm & Family Affairs in Order Webinar on January 9, 2014

by: David Marrison, OSU Extension Educator Farm accidents, cancer, disability, heart attacks, failing health, and death are all words farmers do not like to hear. Farming is the nation’s second most dangerous occupation in the United States. This combined with the aging farm population, could mean that your farm business might lose one of its key managers un-expectantly. Is your farm ready for the unexpected? Have you prepared the next generation to run your farm business after you are gone? To help address the “ah-crap” moments caused by the unexpected, OSU Extension is pleased to be offering a webinar titled “Getting your Farm & Family Affairs in Order.” This webinar is open to farmers across the country and will be held on: Thursday, January 9, 2014 from 7:00 to 8:30 p.m. EST David Marrison, OSU Extension Educator & Associate Professor will be the featured speaker for the webinar. Learn how to develop an emergency contact list for your farm and how to develop letter of instructions to your their heirs regarding their financial matters. Learn how to consolidate all of your financial and personal information (real property, savings & investment accounts, legal documents) in one easy document. This will help you get a better handle on your finances and allow you to get a jump start on your estate plan. Learn the “opossum approach” to checking to see if your heirs are ready to run the farm business. Take time to organize your financial matters for your ...
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Dec
09
2013

Ohio Farmland Preservation Summit Set for February 5, 2014

COLUMBUS, Ohio – Farmers, landowners, planners, local officials, land trust leadership, economic development professionals and anyone interested in preserving farmland in Ohio can take part in an annual farmland preservation summit Feb. 5 designed to gather local and national experts on the subject to promote methods to support this valuable natural resource, organizers said. The 14th annual Ohio Farmland Preservation Summit is designed to help interested parties learn various techniques, tools and methods to preserve farmland, said Mike Hogan, an Ohio State University Extension educator and Sustainable Agriculture coordinator. OSU Extension is the outreach arm of the College of Food, Agricultural, and Environmental Sciences (CFAES). During past farmland summits, experts have presented tools on legal ways for people to preserve farm land, he said. But this year, the summit will offer more information geared toward farmers and how they can preserve farmland, he said. “The goal is to offer a more holistic approach, looking at the bigger issues in farmland preservation, including offering a program track for farmers interested in preserving farmland,” Hogan said. He said the summit will also focus on some of the larger, more important issues in Ohio right now, including presentations on: • Preserving Farmland with Farm Business Succession Planning • Current Trends in Farmland Preservation - What’s Next and When Is It Coming to Ohio • Pipeline ...
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Dec
06
2013

Number of Generations a Farm Has been in a Family

By: Carl Zulauf, Fahri Yavuz, and Bradley Lubben, Professor, Ohio State University; Professor, Ataturk University, Turkey; and Assistant Professor, University of Nebraska,

Overview:  On October 23, 2013, the lead author published a farmdocdaily post titled, “Putting the Age of U.S. Farmers in Perspective,” available at http://www.farmdoc.illinois.edu/.  It has generated considerable attention.  This follow-up post adds another perspective to this discussion by focusing on one finding from a survey published in the “Attributes of U.S. Farms by Number of Generations the Farm has been in a Family,” Journal of the American Society of Farm Managers and Rural Appraiser, 2004, available at http://portal.asfmra.org/userfiles/file/journal/zulauf135_138.pdf.  This article contains more details about the survey and the findings from the survey.

 Survey:  The survey was a random sample of farmers in 26 states during 2001.  Responses were weighted based on the survey methodology to generate a population estimate for each state.  The state estimates then were summed to obtain estimates for the 26 states as a group.  The 26 states contained 1.4 million farms, or 64% of all U.S. farms in the 2002 Census of Agriculture.  The survey question of interest in this post is what family generation does the current operator represent on the farm or ranch?  No other information was ...
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Nov
05
2013

Farm Transition, Estate and Retirement Seminar

Do you have a concrete plan in place to transition the family farm to the next generation? OSU Extension will offer a Farm Transition, Estate and Retirement Seminar on Tuesday, December 10 in New Philadelphia. This event is for all generations involved with the family farm. The purpose of the program is to offer tools and education to farm owners who are preparing to transition the farm to the next generation. Topics include trusts, gifting, protecting farm and personal assets, federal estate taxes, insurance options, retirement income and security, family communication and much more. Speakers include Robert Moore, Attorney, Wright Law Company; Larry Gearhardt, OSU Extension Taxation Field Specialist; Chris Zoller, OSU Extension Educator Tuscarawas County; and Emily Adams, OSU Extension Educator Coshocton County. Seminar check-in begins at 9:30 am with the program scheduled from 10:00 am until 3:00 pm. Cost of registration is $15 per farm family and includes lunch and a resource notebook. The seminar is made possible with generous support from Farm Credit Mid-America and PNC Bank. The program will be held at the Kent State University Tuscarawas Branch in the Ohio Small Business Development Center, Room ST209, 330 University Drive NE, New Philadelphia, OH 44663. Registration and payment is required by November 27. Registration forms are available online at www.coshocton.osu.edu. Contact Emily Adams, OSU Extension Coshocton County, for more information at 740...
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Nov
01
2013

OSU Extension to Host Annie’s Project in Marysville, Ohio in January

By: Amanda Douridas, Extension Educator Women in agriculture who are interested in taking a more active role in farm operations may sign up for Annie's Project, a multi-part risk-management course offered by Ohio State University Extension. The workshop is being sponsored by OSU Extension offices in Champaign, Delaware and Union counties. The six-week workshop will be held at the Union County Extension Office beginning January 15, 2014 from 6:00 p.m. to 9:00 p.m. and running consecutive Wednesdays through February 19th. Annie's Project is designed to strengthen women's role in modern farm enterprises. The project's namesake was a woman who grew up in a small rural community and spent her adult life learning how to be an involved, successful business partner with her husband. Annie's daughter, Ruth Hambleton, became an Extension educator in Illinois and developed the program in 2000 in honor of her mother's life experience. It is currently offered in 22 states. Annie's Project focuses on five broad aspects of risk management typical in the agricultural setting: human, financial, marketing, production and legal. OSU Extension began offering Annie's Project in 2007, touching hundreds of lives since and inspiring women to become more active in agricultural roles. It has received wide support not only from participants, but agricultural lenders, agribusinesses, ag service providers and agricultural organizations, which have provided information, class instructors and s...
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Nov
01
2013

“Getting Your Farm & Family Affairs in Order” Webinars to be Offered

by: David Marrison, OSU Extension Educator Farm accidents, cancer, disability, heart attacks, failing health, and death are all words farmers do not like to hear. Farming is the nation’s second most dangerous occupation in the United States. This combined with the aging farm population, could mean that your farm business might lose one of its key managers un-expectantly. Is your farm ready for the unexpected? Have you prepared the next generation to run your farm business after you are gone? To help address the “ah-crap” moments caused by the unexpected, OSU Extension is pleased to be offering a webinar workshop, titled “Getting your Farm & Family Affairs in Order.” This webinar is open to farmers across the country and will be held three times. Farm Families are encouraged to choose the one which works the best for their family. These webinars will be held on: Saturday, December 14, 2013 from 12:00 noon to 1:30 p.m. EST Wednesday, December 18, 2013 from 7:00 to 8:30 p.m. EST Thursday, January 9, 2014 from 7:00 to 8:30 p.m. EST David Marrison, OSU Extension Educator & Associate Professor will be the featured speaker for the webinar. Learn how to develop an emergency contact list for your farm and how to develop letter of instructions to your their heirs regarding their financial matters. Learn how to consolidate all of your financial and personal information (real property, savings & investment accounts, legal documents) in one easy document....
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Jan
22
2013

Changes to Federal & Ohio Estate Taxes will help Ohio Farm Families

By David L. Marrison, OSU Associate Professor One worry which was taken off the minds of many farm families was the threat of the federal estate tax reverting to a $1 million dollar exemption in 2013. This worry was eliminated with the estate tax provisions of the fiscal cliff legislation titled American Taxpayer Relief Act of 2012 in January 2013. Farmers now can breathe easier with respect to the federal estate tax. To top it off, the Ohio legislature had also voted to repeal the Ohio Estate tax beginning January 1, 2013. These article examines these changes and how they may impact Ohio farm families. Federal Estate Tax Changes The American Taxpayer Relief Act permanently sets the federal exemption for gifts and estates at $5 million instead of dropping to the aforementioned $1 million level. This amount will be indexed for inflation. The IRS has announced the 2013 limits will be $5,250,000 up from its 2011 level of $5,125,000. It should be noted that this legislation included the word “permanent.” This is significant as many fiscal agreements made by Congress since 2001 have contained a phase out date. The legislation also allows for portability or the transfer of the unused exemption of a deceased spouse to the surviving spouse. To gain this portability, the executor of an estate must properly file the deceased’s estate tax return within nine months. Once the filing is completed, the remaining exemption is transferred to the spouse of the deceased, who can...
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Keith L. Smith, Ph.D., Associate Vice President for Agricultural Administration and Director, Ohio State University Extension TDD No. 800-589-8292 ( Ohio only) or 614-292-1868