By Lacie Armstrong

In the midst of a global pandemic, trade wars, low prices and an unpredictable climate, the future of agriculture is uncertain and so is retirement for most farmers.

Nearly a third of farmers and ranch operators in the United States are over age 65. Seventy-five is the average retirement age of American farmers currently. Health, market volatility and finances usually play a big part in most farmers’ decisions to retire but with COVID-19 unfolding, the views of their future have also been affected.

Usually farmland must be passed down to a new generation for agricultural communities to survive. But without agriculture reaching a lot of media attention, most people aren’t interested in agriculture. Farm operators who don’t have children willing to take over the farm often end up selling to developers or neighbors who may be near retirement themselves. When farmers do have a son or daughter ready to take the reins, poor financial planning, family infighting, or lack of communication can still leave descendants no choice but to sell the farm.

Symptoms Farmers Often Face Before And After Retirement:

• Depression
• Feeling a lack of usefulness
• Anxiety
• Excess Worry
• Confusion/Doubt
• Loss of interest

Most of these symptoms come from feeling apprehensive towards their decision. Most farmers and ranchers worry about having enough resources to live satisfactorily with their partners or to assist other dependents in their remaining years. Uncertainty about what lies ahead can be especially troubling for people advancing toward the end of life. Farmers can be wealthy on paper, owners of tractors that cost $200,000 and land worth millions, but still have very little money in the bank. And they can’t easily sell off their assets – to pay taxes or nursing home fees, for instance – without hurting the farm business. It’s recommended that farmers take at least five years for income tax planning — to work their income back in and even it out so that they aren’t hit with a huge tax burden in the first year of retirement.

A good way to avoid estate taxes is for farm families to wrap their assets in trusts, limited liability companies, and limited liability partnerships. They will need mechanisms to allow a retiring farmer without a 401(k) to continue to draw income from the farm after his child takes over ownership. They might need livestock leases, conservation easements, or options to purchase.

Ways Farmers/Ranchers Can Retire During COVID-19:

• Cash renting farmland to farmers in the area
• Crop Sharing
• Teaching younger farmers
• Investing
• Helping maintain ponds, waterways, irrigation on other farms
• Helping relocate farms/animals
• Retiring doesn’t have to be all bad. Retirement can also bring freedom. Freedom to enjoy free time, pick up new hobbies, spend time with family, investing in the community, and more. The opportunities are endless, and it allows farmers and ranchers to avoid “slowing down”.

Although retirement is uncertain for many, Farmers and ranchers can use the opportunity to invest their time as they please, confirming that retirement from farming isn’t really retirement, at all, but rather a redirection of passion and service.