Financial health, succession of business top concerns for farmers

INDIANAPOLIS — Indiana Farm Bureau surveyed more than 2,100 people about future operations on their farm.

The survey gave insight on topics such as the financial health of the farm or business and estate and succession planning for the future of the farm.

Results:

• Twenty-seven percent of respondents indicated that the business was slightly or much better when asked about financial health of their operation compared to the previous five years.

• Thirty percent of respondents thought the next five years would be slightly or much better financially.

• Over half of respondents 35 years old or younger thought the next five years would be better, revealing an optimistic trend in the younger generation.

• Respondents 35 years old and younger are more optimistic that their business will be passed to the next generation with 37% very confident or extremely confident this will occur.

• Respondents 51 to 75 years old are the most pessimistic with 37% not confident or only slightly confident that another generation will continue the business.

• Sixty-one percent of respondents 50 years old or younger reported they do not have a succession plan in place.

• Thirty-five percent of respondents 65 and older did not have a succession plan for their farm or business.

The survey also revealed how certain types of farmers look at the future, with 42% of full-time farmers very confident or extremely confident that the business will be passed down, whereas 38% of part-time farmers are not confident or only slightly confident this will occur.

“It isn’t surprising that full-time farmers are more confident in passing down their operation,” said Todd Davis, INFB chief economist.

“This reflects the strong ag sector profitability in 2022. Part-time farmers rely less on farm income to fund family living so they do not see as much of the strong sector return that a full-time farmer would see, which may contribute to why those members have some doubt in passing down the business to the next generation.”