 McShane & Bowie, PLC has parterned with MiFarmLink Project to offer free estate planning consultations. (Stock image)
Saving the farm with succession planning
McShane & Bowie, PLC partners with MiFarmLink Project to offer free real estate planning consultations
Hit any local market or farmstand from St. Joseph to Cadillac and you'll see a myriad of locally produced products of all types for sale - blueberries, corn, soybeans, and beef, just to name a few. Modern cold storage techniques and greenhouses mean residents can easily buy locally grown lettuce, apples, and root vegetables in the dead of winter. Ottawa County farmers alone produce more than $506 million in products annually (2017 Agriculture Census). With all this abundance, Michigan's farms must be doing better than ever - right?
"With a sound succession plan, aging farmers can plan for passing on their life's work to interested heirs, or even young farmers looking to get a foothold in the world of ag. The problem is getting started."
Ottawa County Economic Development Coordinator, MiFarmLink administrator Becky Huttenga
Statistics tell a different story. Michigan lost 9% of its farms from 2012-2017 (2017 Agriculture Census). The reasons for this are many - but two major challenges include development pressure and a lack of new farmers entering the fields. Data from Heart of the Lakes, a land conservancy collaborative, reveals farmers aged 65 and over outnumber farmers under 35 by a ratio of more than three to one. About 68% of beginning farmers state that access to land is their biggest barrier to success. However, less than 40% of those older farmers intend to pass their land on to an heir. For some farmers with retirement on the horizon and no one to pass the baton to, selling to a commercial or residential developer may seem like the only viable and financially sound solution.
MiFarmLink Project, a local support system for Michigan farmers, disagrees.
"With a sound succession plan, aging farmers can plan for passing on their life's work to interested heirs, or even young farmers looking to get a foothold in the world of ag," said Ottawa County Economic Development Coordinator and MiFarmLink administrator Becky Huttenga. "The problem is getting started."
Tempering farm loss with succession planning
Planning for passing on an agricultural operation can be intimidating. Farmers may face a virtual maze of uncomfortable conversations, competing interests, tax issues, and potential business restructuring. To help West Michigan farmers get the ball rolling, MiFarmLink Project partner and Grand Rapids-based estate planning law firm McShane & Bowie, PLC is offering free consultations.
"Farmers' operations are intertwined with complicated business and succession planning issues," said estate planning specialist Michelle Anthes of McShane & Bowie, PLC. "It's imperative to start early. We can help alleviate anxiety and supply agriculture veterans a solid foundation to build their plan."
Working with McShane & Bowie, experienced farmers can get started on a personalized succession plan that will protect them, their heirs, and their assets. Participants will leave the session with a navigable and manageable roadmap to guide them on the path to a complete and comprehensive plan. And, there is no obligation to continue completing the succession plan with McShane & Bowie attorneys.
"Participants can feel free to complete the plan with their current legal advisor," said Huttenga. "We just want them to get started."
Financial incentive
In addition to the free initial consultation, the MiFarmLink Project has funding available to provide succession planning participants with a financial incentive. Once their succession plans are completed, participants can receive a reimbursement of 10% of the total cost to complete the plan (up to $3,000). Farmers must submit a form, an invoice, and proof of payment by June 30, 2022 to receive the funds. These funds will be distributed on a first-come, first-served basis. For more information on this succession planning consultation, visit www.mifarmlink.org/succession-planning. To schedule an appointment, email ajk@msblaw.com or call 616.732.5067.
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