It’s estimated that at least 40 per cent of Canada’s farmers will retire within the next decade, making farm succession planning a hot topic in agriculture. With the average age of farmers on the rise, the need for transition strategies is now more pressing than ever.
Succession looks different for every farm, as the transition path must meet the needs of the farming family and its business.
Common options include:
family succession, where the farm is passed down to a relative.
partnerships, which allow for a gradual transition of responsibilities.
the formation of corporations or LLCs to manage assets and operations.
Other options include selling the farm to a third party, leasing it to a successor, setting up trusts and estates, or even employee buyouts for long-term workers familiar with the farm’s operations.