Farm Transitions and Sweat Equity (Dec. 12, 2024 Webinar)

With Jenn Krultz Sather, Master of Agribusiness Graduate, Kansas State University; and Anastasia Meyer, Agricultural Economist, University of Nebraska-Lincoln. Approximately 84% of assets on U.S. farms are represented in land ownership. Land values have dramatically increased over the past 50 years, while commodity price trends have paled in comparison. As farmers look to retire and successfully transition their farms to the next generation, it may be necessary to rely on sweat equity to compensate a returning heir as sufficient cash may not be available in any given year. In this webinar, Jenn Krultz Sather will share findings from her Kansas State University master’s thesis research on sweat equity arrangements in family farm succession planning. This research relied on Kansas Farm Management Association data regarding farm income, expenses, debt, and family living expenses to create three simulation farms. Krultz Sather will discuss different transition arrangements to determine which arrangements provide the highest cash and sweat equity values to ensure the success of each farm for both the retiring generation and the returning heir. She will also cover the concept of “fair vs. equal” when multiple stakeholders are involved, and “risk vs. opportunities” when relying on sweat equity assessments.