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Unit 3: Managing the Farm/Ranch Business for Long-Term Success

Paul and Maxine Haydon of Oklahoma. (Todd Johnson)

Retirement Options

Farmers and ranchers usually have very few investments outside the farm, so this means that the farm business itself is the major source of retirement earnings or wealth. A major question facing retiring farmers is how to finance retirement and still keep the farm business (its land and assets) intact. Is it possible to do both? Most farmers and ranchers are looking at four possible options for financing their retirement:

• rent out farmland

• turn management over to another family member or partner

• put farmland into a conservation easement and sell off other assets

• sell the farm business

All of these strategies can be implemented in a way that still leaves the business intact, but require good planning and communication within the farm management team.