Planning for the future of your farm can be complicated enough without the bumps in the road life tends to produce. Now imagine that bump being a roadblock. There is, however, planning that can still be done for those instances. For the prepared business owner, they come in the form of buy/sell agreements.

A buy/sell agreement is a contract that provides for the sale of a business interest (including a farm) when a triggering event occurs such as the death, disability or retirement of a farmer. Below are the specifics to help determine if a buy/sell agreement should be considered:

• The benefits: When a triggering event occurs, the buy/sell agreement enables those in the arrangement to continue the operation in harmony since the event has already been planned for. The agreement allows everyone to maintain ownership and control, and safeguards against someone now being forced into the farm operation that doesn’t have an interest in participating, for example, a child or widow. Also, depending on how the agreement is structured, it provides sufficient cash to be immediately available to carry out necessary transactions or to provide liquidity for estate expenses.

Questions to ask yourself

To better help determine if you should consider a buy/sell agreement, here are some questions to ask yourself.
• With no agreement in place might your family or partner’s family make unreasonable demands?
• Are you concerned about your family being neglected if you aren’t in the picture and there is no agreement in place?
• Do you want to be in business with your partner’s spouse or child?

How else these agreements are used

In addition to using buy/sell agreements for farms with multiple owners, these arrangements are also used in sound business and estate planning when the single owner (or married owners) of a farm would like to pass on their land and operation to their heirs so that they may carry it on. This method has proven to be effective in providing widowed spouses with income in retirement or to aid in the transition of a farm or ranch to the next generation.

When thinking about buy/sell agreements or other business planning strategies, it’s important to enlist the help of qualified professionals who don’t have a stake in the final decisions. Qualified professionals may include a banker, accountant, personal attorney or a financial or estate planner. For help in finding a qualified professional to speak with, contact the Nationwide Land As Your Legacy team at [email protected] or toll-free at 855-529-2729.

Neither Nationwide, nor its employees, its agents, brokers or registered representatives gives legal or tax advice.
Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Land As Your Legacy are service marks of Nationwide Mutual Insurance Company. © 2017 Nationwide
Labor has always been an issue, mainly because we are a seasonal operation. So that's a challenge finding somebody who only wants to work three months out of a year, sometimes up to six months.
Mandy Way's avatar
Mandy Way

Way Farms

Farm Labor Resources
I appreciate the benefit of having a strong voice in my corner. The extras that are included in membership are wonderful, but I'm a member because of the positive impact to my local and state agricultural communities.
Ernie Welch's avatar
Ernie Welch

Van Wert County Farm Bureau

Strong communities
I see the value and need to be engaged in the community I live in, to be a part of the decision-making process and to volunteer with organizations that help make our community better.
Matt Aultman's avatar
Matt Aultman

Darke County Farm Bureau

Leadership development
Farm Bureau involvement has taught me how to grow my professional and leadership experience outside of the workforce and how to do that in a community-centric way.
Jaclyn De Candio's avatar
Jaclyn De Candio

Clark County Farm Bureau

Young Ag Professionals program
With not growing up on a farm, I’d say I was a late bloomer to agriculture. I feel so fortunate that I found the agriculture industry. There are so many opportunities for growth.
Jenna Gregorich's avatar
Jenna Gregorich

Coshocton County Farm Bureau

Growing our Generation
Knowing that horticulture is under the agriculture umbrella and having Farm Bureau supporting horticulture like it does the rest of ag is very important.
Jared Hughes's avatar
Jared Hughes

Groovy Plants Ranch

Groovy Plants Ranch
If it wasn't for Farm Bureau, I personally, along with many others, would not have had the opportunity to meet with our representatives face to face in Washington.
Austin Heil's avatar
Austin Heil

Hardin County Farm Bureau

Washington, D.C. Leadership Experience
So many of the issues that OFBF and its members are advocating for are important to all Ohioans. I look at OFBF as an agricultural watchdog advocating for farmers and rural communities across Ohio.
Mary Smallsreed's avatar
Mary Smallsreed

Trumbull County Farm Bureau

Suggested Tags: