Family farmers in Minnesota work hard to build sustainable, productive operations—often across generations. Yet despite that long-term investment, many farming families do not have a formal succession plan in place. This can create confusion, conflict and financial strain when the current generation retires, becomes incapacitated or passes away.
A solid succession plan outlines how ownership and management of the farm will transfer to the next generation or to other trusted individuals. Without such a plan, families may find themselves unprepared to handle disputes over who inherits what, how farm operations will continue or how to treat non-farming heirs fairly. Minnesota law will apply default rules through probate if there is no estate and/or succession plan in place, which may not reflect the family’s wishes or protect the farm’s continuity.
Thinking ahead
One common challenge that may need to be addressed when estate planning and succession planning for a family farm is balancing the needs of heirs who work the land with those who do not. For example, one child may have been actively involved in farm operations for years, while others pursued careers off the farm. Without a clear succession plan, each may be entitled to an equal share of the estate—even if only one plans to continue farming. This could force the sale of equipment or land to pay out the others, potentially putting the future of the farm at risk.
Tax considerations are also important. The value of farmland and equipment may push the estate over federal or state tax thresholds. With proper estate planning tools—such as trusts, business entities or gifting strategies—families can reduce potential tax burdens and preserve more of the farm’s value for future generations.
A succession plan may include several legal instruments: wills, trusts, buy-sell agreements, business entity structures (like LLCs) and powers of attorney. It should also clearly identify who will manage the farm, how assets will be distributed and how transitions will be handled over time. A well-drafted plan reflects the family’s goals and provides flexibility for changing circumstances.
In the end, succession planning ensures that the farm can thrive in the hands of the next generation. It protects not just land and equipment, but relationships, traditions and a way of life that many families have spent decades building. Because every family farm is different, there’s no one-size-fits-all approach. Working with a skilled legal team that understands Minnesota’s agricultural and estate laws can help you design a plan tailored to your land, your family and your legacy.