The transition of farm business assets from one generation to the next carries a number of challenges and risks that can affect the incoming farmer's chances of business success. However, a written yet flexible farm succession plan can not help build equity and management ability in the succeeding generation.

Recommended Resources

"Two Generation Farming" Series (Iowa State University Extension, November 1998).  This 3-part article series presents a succession planning model where two generations (senior and junior) work together and develop a workable plan.

Step One:  Getting Started

Solid introduction to the two-generation planning process, covering the critical elements of income division, asset transfer and management transfer.

Step Two:  Selecting A Business Arrangement

An examination of the legal agreements under which a two-generation operation might work, including wage and incentive agreements, operating agreements, and advanced business organizations.

Step Three:  Making it Work

Covers communication strategies essential to a successful two-generation operation, including conflict resolution and management development.