Recent growth in farm land pricing has outpaced land’s earning capacity. What does this mean for the farm? It means, among many other things, that land is more than even before an indicator of wealth and a business asset in the farming economy. This is good news for farmers who own land, however, it creates new issues for succession planning as many who own land want to hang on to this precious and finite resource.
As Greg Gartner, of Moodys Gartner Tax Law, explains in this interview, farmers don’t necessarily require ownership of land to farm, but they do require access to land. And that’s an important distinction. Gartner says that the combination of incredible wealth tied up in land and a move to unique ways of dividing up the farm’s assets has led to the rise of capital partnerships being used to manage farm assets.
In this interview, Real Agricutlure’s Jason Stroeve captures Gartner’s thoughts on how expanding the use of a captial partnership can keep the farm running peacefully and in the long-term, even as management of the farm changes hands.