Nebraska Edition | August 29, 2019

proposed enterprise, you find out that they have never been around that particular enterprise before. Or, if there is some contact or experience, the experience is very limited. Be sure the proposed enterprise is something that the potential laborers and/or managers of that enterprise will be able to work and enjoy. Can the younger generation be put on the business end of a scoop shovel for the rest of the older generation’s career? That is probably not a good idea. There are other responsibilities of the operation and producers should consider how those responsibilities could be transferred over time. Testing is just the first phase. Once testing is completed, then it is time to add responsibility or management transfer. The second phase is called Management Transfer. Does this mean that the younger generation retains control of all of the management all of the time? Probably not. It does mean that there should be a conversation between generations to think about what management could be shared over a period of time. What does this transfer of management responsibilities look like? One of the parcels of land might be assigned to the younger generation. They make decisions on seed selection, fertilizer rates, weed and disease control, tillage options, and marketing. Another example might be to let the younger generation plan the breeding program for the herd, or part of the herd. The younger generation could also be placed in charge of purchasing inputs, or marketing. Be sure that when working on the tasks to assign to the younger generation there is a mix of tasks that are liked and those that are disliked by that individual. Assigning all tasks, liked or all tasks disliked won’t be as helpful for long-term success. Over time, more management tasks are assigned. One important part of management transfer is to write everything down. The transfer plan should include documented start dates so there is no confusion as to how to the transfer will work. The third phase is called Enterprise Transfer. Typically this would be the transfer of livestock or machinery to the younger generation in a gradual and planned way. For livestock, an example would be that the younger generation would receive a certain percentage of the calf crop to start their own herd. With machinery, one way to work on transfer is to gift a machine to the younger generation and when it is time to trade for a newer model, they could use the gift to buy the newer machine. The younger generation would use their cash or credit to make that purchase. There are many ways to transfer the ownership of livestock, buildings and machinery. Be creative in your thinking. Again, write it down and put dates to the plan. That way both parties know what is expected to happen and when it should happen. The last phase is the Land Transfer phase. This phase includes the transfer of land or other large-value assets. This phase may not even occur until the end of life of the older generation. Usually, consideration is given to the non-farm sibling(s) when making plans for this transfer. In families where there are both on-farm and off-farm sibling(s), fair may not be equal. Meaning if the on-farm sibling has provided years of sweat equity to the operation, it might be appropriate to reward that sweat with a larger slice or share of the pie. That might be fair. There are plenty of parents and grandparents who grew up believing that fair was equal. In the case where none of the children are on-farm, or in the case that all of the children are helping, then fair might be equal. However, if you have one child that has spent decades with the operation, then proper consideration should be made to reward the sweat equity that they have contributed to make the operation what it is. As you work on Phases 2, 3, and 4, be sure to include a CPA and attorney when making arrangements. Be careful of the tax implications of your intent. The intent of the asset transfer can usually be implemented but has to be done the right way to avoid excessive taxes. Another consideration is to put the future intent of the operation into the estate planning documents. If land will be split between two or more children, be sure that the non-farm sibling(s) are not allowed to force the sale of the asset to receive the cash value. Unless that is the intent. The use of agreements like buy and sell agreements in the estate plan will help in this case. If the intent is that the on-farm sibling pays some level of rent to the off-farm sibling(s), then write a long-term lease into the estate documents. There is no perfect way to recommend how to transfer a farm or ranch operation. Every family is different and has their own issues and personalities. Establishing good communications about the issues and discussing the process fully will go a long way toward making a workable solution for farm and ranch families. © Donald A. Gardner, Inc. # W-1446 The Wallace Cedar shakes mix with siding and stone to create a richly textural Craftsman exterior. This floor plan is ideal for large or growing families with open living spaces making it easy to be together. The master suite and a bedroom/study are downstairs while three large bedrooms with walk-in closets are upstairs. A second-floor pocket office is a great space for children to complete homework or projects and a bonus room provides additional square footage for recreation or storage. Detailed Specifications General Information 2,940 Total Sq. Ft 5 Bedrooms 4 Bathrooms 2 Stories Finished Square Footage 1st Floor: 1,953 Sq. Ft. 2nd Floor: 987 Sq. Ft. Unfinished Square Footage Bonus Room: 297 Sq. Ft. Garage/Storage: 606 Sq. Ft. Patio: 257 Sq. Ft . Porch - Front: 202 Sq. Ft. Porch - Screened: 260 Sq. Ft. Additional Specs House Dimensions: 66’ 4” x 64’ 0” Great Room: 17’ 4” x 14’ 0” Master Bedroom: 13’ 0” x 15’ 4” Exterior Wall Construction: 2x4 ** Foundation: Crawlspace Room Information Bedroom #5 (Flat): 11’ 4” x 12’ 0” x 8’ 0” Pocket Office (Flat): 7’ 4” x 6’ 0” x 8’ 0” Storage (1st Fl.) (Clipped): 5’ 8” x 3’ 4” x 9’ 0” Balcony (Flat): 17’ 4” x 4’ 4” x 8’ 0” Foyer (Vaulted): 8’ 4” x 6’ 10” x 18’ 1” Dining Room (Flat): 11’ 4” x 13’ 8” x 9’ 0” Great Room (Vaulted): 17’ 4” x 14’ 0” x 18’ 1” Kitchen (Flat): 12’ 0” x 12’ 0” x 9’ 0” Utility Room (Flat): 12’ 8” x 10’ 0” x 9’ 0” Bonus Room (Clipped): 12’ 0” x 17’ 6” x 8’ 0” Garage (Flat): 22’ 8” x 24’ 4” x 0’ 0” Garage Storage (Flat): 10’ 8” x 3’ 0” x 0’ 0” Master Bedroom (Tray): 13’ 0” x 15’ 4” x 10’ 6” Bedroom / Study (Cathedral): 14’ 4” x 12’ 0” x 13’ 10” Bedroom #3 (Cathedral): 11’ 8” x 14’ 0” x 12’ 0” Bedroom #4 (Cathedral): 11’ 8” x 13’ 0” x 12’ 0” Porch - Front (Flat): 27’ 8” x 6’ 0” x 9’ 0” Deck / Patio (None): 19’ 10” x 16’ 8” x0’ 0” Porch - Screen (Cathedral): 16’ 8” x 13’ 0” x 20’ 0” The Wallace The Donald A. Gardner Plan of the Week is available via email and RSS. You can receive the best of the Donald A. Gardner design portfolio when and where you want it! Each spotlighted home design includes house plan specifications, floor plans and images, as well as a house plan description. To receive a plan for this home, order by phone: Tollfree: (800)-388-7580. Reference plan: # W-1229. Online: go to . Farm and Ranch Publishers - Central Nebraska Publications Sales Representatives Todd Smith • Kathy Larson Production - Sydney Crowell & Rebecca Parish Important Notice: The publisher does not assume any responsibility for the contents of any advertising herein, and all representations or warranties made in such advertising are those of the advertisers and not the publishers. The publisher is not liable to any advertiser herein for any misprints in advertising not the fault of the publisher, and in such an event the limit of the publisher’s liability shall be the amount of the publisher’s charge for such advertising. In the event of misprints, the publisher must be informed prior to the printing of the next publication Published by: Central Nebraska Publications, Inc. P.O. Box 415 • 13 E. 22nd Street • Kearney, NE 68847 1-800-658-3191 Copyright © 2019 Transfer to Next Generation... Continued from page 1