How Does Farm Succession Planning Work?

If you’ve been thinking about farm succession planning but feel stuck on the practical questions—What’s the process like? How long does it take? What does an attorney actually do?—you’re in the right place.

Most farm families don’t avoid succession planning because they don’t care. They avoid it because it feels big. Emotional. Complicated. And honestly… easy to postpone when there’s always another season, another project, another deadline. Yet research continues to show that while many farms engage in some level of planning, a meaningful number still don’t have a complete, written plan that clearly addresses both the business and the family realities.

The good news is this: farm succession planning doesn’t require you to have everything figured out on day one. It requires a clear process, the right guidance, and a plan that reflects your goals—so your farm can move from “we should do this someday” to “we have a roadmap we feel good about.”

Farm succession planning is a process, not a single document

One of the most helpful mindset shifts is realizing that succession planning isn’t just “signing papers.” It’s a coordinated process that connects the family’s vision, the farm’s business operations, and the legal tools needed to protect both. Agricultural extension resources emphasize that every agricultural business should have a succession and estate plan in place—whether retirement is close, far away, or not part of the plan at all.

That matters because farms are unique: the “business” and the “family” overlap every day. A guidebook developed through Purdue Extension describes a farm business as an intersection of family and business, which is exactly why succession can feel so personal—and why it benefits from structure.

What the farm succession planning process usually looks like

While every family’s plan is different, most effective succession planning follows a similar path.

It starts with clarity and conversations:

Before anyone drafts legal documents, the process begins with clarity: What do you want the farm to be in 5, 10, or 20 years? Who hopes to farm? Who doesn’t? What does “fair” mean in your family—equal ownership, equal value, or something else?

Workbooks created specifically to guide farm families through succession consistently start here, because goals and communication drive everything that follows. Land For Good describes its workbook as a way to start important conversations, clarify goals, and identify what information needs to be gathered and shared with family members and advisors.

If family communication feels tense or difficult, you’re not alone. University of Wisconsin–Madison Division of Extension notes that one way to build momentum is to work through tangible business evaluation and planning steps first—often improving communication and trust as the farm members work together.

Then you gather the right information

Once goals are clearer, the process typically shifts into information gathering: ownership details, asset lists, debt, leases, entity documents (LLC/partnership), current roles, and decision-making responsibilities. This is where the plan becomes real—because you’re building the “map” of what exists today.

Many farm succession checklists published by extension programs describe this as a distinct step: collect and analyze information, then use that shared understanding to create workable options.

Next, you explore options and design a plan that fits your family

This is the stage where families often feel relief—because they learn there isn’t one “right” plan. There are options.

Some plans focus on a gradual transition of management first, then ownership later. Others use entity structures, agreements, and timelines to transfer decision-making in a way that protects the farm’s stability.

Then the legal tools are drafted to match the plan

Once the family’s goals and preferred pathway are defined, this is where an attorney becomes essential: turning decisions into enforceable legal protection.

For many farms, part of this includes agreements that address how ownership transfers happen and what occurs if someone exits, passes away, divorces, or becomes unable to operate. The Center for Agricultural Law and Taxation explains that attorneys drafting buy-sell agreements depend on owners making key decisions first (like who can purchase, how price is determined, and when the agreement applies)—which is a helpful reminder that the “paperwork” is only effective when it reflects clear choices.

Finally, you implement, review, and update over time

Succession planning isn’t a “one-and-done” project. It should be reviewed and updated as life changes: marriages, births, deaths, market shifts, health changes, land purchases, business growth, and more. Many extension-based planning frameworks explicitly include implementation and monitoring as a final stage—because a plan only helps if it’s kept current.

Farm land above - fielding crops

Why the process is worth it, even if it feels hard.

Farm succession planning creates something most families want deeply but rarely have without structure: confidence. Confidence that the farm can continue. Confidence that decisions are documented. Confidence that family relationships are protected, not strained by assumptions or uncertainty.

It also protects the farm’s operational stability. When roles, responsibilities, and authority are clear—and the legal tools match that clarity—the farm is far more resilient through change.

Protecting What Matters Most

At Plan Wise Legal, the goal isn’t to rush you into documents before you’re ready. The goal is to guide you through a clear process—so your plan reflects your values, your family dynamics, and the future you want for your farm.

If you’ve been thinking, “We’ve been meaning to do this, but don’t know where to start,” this is your sign that starting can be simple: one conversation, one step, one plan at a time.

Ready to take the first step?

Contact Plan Wise Legal to schedule a FREE initial consultation. We’ll help you understand what farm succession planning can look like for your family and what your next best step should be.

Plan Wisely. Build With Purpose. Protect What Matters.

This article is brought to you by Plan Wise Legal, your trusted partner in estate planning, business planning, and elder law across South Dakota, Iowa, Minnesota, Nebraska, and Colorado.