MSU Extension: Finding Fairness in Farm & Ranch Transitions

This is one in a series of articles focusing on estate and legacy planning. The authors are Kaleena Miller, Madison-Jefferson County Extension Agent, kaleena.miller1@montana.edu, and Marsha Goetting, MSU Extension Family Economics Specialist, marsha.goetting@montana.edu.

Have you wondered how “best” to transfer your farm or ranch enterprise among family members? Have you started the process but then got frustrated because no plan seemed fair to all? If yes, you will want to attend the “Finding Fairness in Farm and Ranch Transitions” workshop in Townsend on March 1, 2025. The speaker is Elaine Froese, who is well known for her ability to help parents and grandparents sort out their feelings about passing the farm or ranch down to the next generation. She is a sought-after speaker who focuses on managing a family’s expectations about inheritances.

Talk with almost any Montana family farm and ranch enterprise, and you will find that one of their goals is to transfer land and businesses to the next generation. Still, the process can be sometimes overwhelming,” says Marsha Goetting, MSU Extension family economics specialist. “Some families avoid the process completely because of the complexities of economic, legal, and family decisions. Others may start the process but abandon it to prevent conflicts arising from differences in goals, values, and feelings of fairness among family members.

“This FREE workshop has information for each generation to help them focus their thoughts and feelings about succession planning issues,” says Kaleena Miller, Madison-Jefferson County Extension Agent. “I encourage our farm and ranch families in Madison/Jefferson counties to take advantage of this opportunity offered by the Broadwater County Conservation District. ”

Elaine stresses that today’s farm or ranch is not a piece of pie that can be divided into equal shares. She says in today’s agricultural reality, a family cannot make all their children economically equal. Equality is no longer part of the transition language. The secret is to manage expectations and navigate finding fairness in a farm or ranch transition to ensure that everyone will be successful.

“During my estate planning meetings across Montana I often find members of the younger generation found it difficult to initiate a discussion about the farm and ranch transfer and succession processes,” Goetting said. “They fear older generations may perceive them as being overly interested in their inheritances.

On the other hand, when members of the older generation bring up the topic, the younger generation may not be responsive. They do not want to think about their grandparents or parents dying.

“Families who have been through the transfer and succession planning process suggest starting at an individual level,” Miller said. Then, families should discuss issues in a larger group. For example, suppose a father feels it important for the farm or ranch to remain in the family’s possession but his wife is ambivalent. In that case, they must agree before they begin succession planning with their children. Afterward, the two generations can meet to share their thoughts on the process.

“Reaching a family agreement about goals before a business discussion helps negotiations run smoothly,” Goetting added. While there may still be tension or conflict about values and roles in the family business, communication is key in keeping the process moving.

“Preparing farm and ranch family business members for transfer and succession planning is a part of the older generation’s responsibility to the younger generation,” Miller said. The legal and economic aspects of the transfer plan are important. Connectedness among the family business members and the working out of future management strategies, or succession planning, is also absolutely critical to the success of any transfer plan.

The Finding Fairness in Farm and Ranch Transitions workshop is on March 1st from 9:30 AM until 3:30 PM in Townsend at the 4-H Building on 189 Highway 12 East. To register, go to this website: https://tinyurl.com/4djaur8s. If you don’t have access to a computer, call 406-521-3014 from 9 AM to 4 PM.