Your family owns a farm in a state or county far, or maybe not so far, from where you live today.  You visited your grandparents there when you were younger and heard a little about it from time to time from your parents.  Now there is a generational transfer and you are the sole owner or one of the owners of the family legacy farm.

Inheriting a farm can be both an opportunity and a major responsibility — emotionally, financially, and operationally. What you do next depends on your goals, family situation, and comfort level with farm management. Likely you know something about the farm, its location, its size, does it have buildings and who is the tenant.  Maybe you know even more such as the lease terms, ownership entity and who has the responsibility now for it.  What is the next step?

Here’s a clear, step-by-step guide:

🌾 1. Take Stock — Don’t Rush

Before making any decisions:

• Gather all documents – deeds, wills, leases, tax records, insurance policies, and any existing farm management agreements.
• Understand ownership – Are you the sole heir or sharing ownership with siblings or other family members?
• Assess the assets – Land, equipment, livestock, crops, and financial accounts.
• Check for liabilities – Debts, liens, or pending leases.

Take your time. Farm assets are long-term investments, and quick decisions can be costly.

🧾 2. Consult Key Advisors

You’ll likely need a team to guide you:

• Attorney (estate or ag law) – To clarify ownership, probate, and tax obligations.
• CPA or tax advisor – To handle inheritance taxes, basis adjustments, and potential capital gains.
• Farm management professional – To assess the farm’s operations, productivity, and potential. This person can be your long-term partner in the management and operation of the farm.
• Financial planner – To integrate the farm into your overall financial goals.

🚜 3. Evaluate Your Options

Depending on your interest, ability, and professional partner you can:

1. Keep and Operate It

If you want to stay involved in agriculture, you can:

• Manage it yourself (if you have experience).
• Hire a farm manager to oversee operations while you retain ownership.
• This step involves a lot of capital to plant the crop, maintain equipment and labor.

1. Lease It Out

You retain ownership but rent the land to a local farmer.

• Provides steady income.
• Common in Midwestern farmland ownership.
• Can be cash rent, crop share, or a custom arrangement.
• A professional farm manager can handle all of this work for you.

1. Sell It

If you prefer liquidity or don’t want to manage farmland:

• Consider timing for tax advantages (step-up in basis may reduce taxes).
• Work with a farmland broker or auction company such as Halderman Real Estate to determine value, sale method, and marketing plan.
• Weigh emotional and family factors carefully.

🌱 4. Consider Professional Management

Farm management companies (like Halderman Farm Management) can:

• Handle tenant relationships and leases.
• Monitor soil health, conservation, and profitability.
• Provide annual reports and financial summaries.
• Help maximize long-term returns while preserving family ownership.

This is often the best balance between keeping the land and ensuring it performs well financially.

💬 5. Communicate with Family

Many inherited farms are co-owned among siblings or cousins.

• Set expectations early about goals, timelines, and roles.
• Use written agreements to prevent future disputes.
• Determine decision making structure.  A point person can expedite the process and create more efficiency in the operation.
• Consider forming an LLC or trust for easier management and succession planning.

🧭 6. Think Long-Term

• Develop a succession plan for future generations.
• Explore conservation programs, capital improvement projects and farm improvement plans if you intend to keep it.
• Keep farm infrastructure (like tile, fences, buildings) well-maintained.

If you’d like, Halderman can help you outline a decision tree (e.g., keep, lease, or sell) based on your situation — or even draft a first-year action plan for inherited farmland.

Halderman has decades of experience helping farmland owners who inherit a farm property either keep it for future generation or sell it, if that meets their goals and objectives.  If you want help, choose someone with local knowledge combined with the “world” view of developing trends and issues that impact your farm.   Please reach out to us at 800-424-2324 or www.halderman.com to explore what might be interesting to you.