MOUNT VERNON, Iowa – An agricultural transition specialist recently highlighted what he called the critical challenges confronting American agriculture during a webinar called “Common Traits of Highly Successful Farm Transitions” for members and member prospects of the American Society of Agricultural Consultants (ASAC).

Mike Downey is senior member coach and succession planning lead for UnCommon Farms, based in Brighton, Ill., which provides consulting services for farm businesses in strategic planning, management, human resources, financials, succession and risk management.

He said only 30 percent of farms successfully transition to the second generation, with only 12 percent reaching the third generation.

“Family farms are at a critical crossroads right now,” said Downey, who works out of his office in Mount Vernon, Iowa. “We are about to experience the largest transfer of land and assets in agricultural history. Having the right plan in place can make the difference between a farm that thrives for another generation and one that fades away. Farmers must make comprehensive succession planning a top priority to secure their farm’s future and operational legacy.”

He said about 68 percent of farmers with children have no one in the family who wants to take over the farm, and 51 percent have not identified a successor. He added that this highlights the urgent need for new ways to plan farm transitions, including the option of passing the farm to someone outside the family.

He said successful farm transition starts with choosing and training a successor early, requiring open communication with everyone involved, and a well-rounded plan. That plan should cover who manages the farm, who leads it in the future, and how assets are shared fairly, he added.

“Succession planning is more than transferring assets with a will or trust,” he told Farm World. “Most farms lack a written and comprehensive succession plan needed to support multi-generational transfers. This is a concern as every time a family farm leaves our rural communities, the chances of bringing them back become very unlikely.”

He said among the key traits of successful multi-generational farm transitions is focusing on the successful transition of the farm first, and not estate or tax planning.

“Begin with the end in mind,” he told webinar attendees. “Visualize the final outcome. Clarify your ultimate goals for the farm’s future, and determine if continuing the farm is a priority.” He added that personal assets should be kept separate from farmland assets.

Downey said other key traits for successful farm transition are determining what is fair and equitable; being 100 percent committed to communicating; and working with a team of advisers, as well as asking what the family policies and guiding principles are regarding family values, employment, compensation, ownership, making decisions, and managing conflict.

He said there should be a structured ownership transfer, as well as customer buy-sell agreements (a contract that outlines how an owner’s share of a family farm or business will be transferred to other owners or the business itself in the event of specific triggers like death, disability or retirement): “Spend some time walking through the different provisions that you can include.”

Individuals also need to understand farm transition numbers, he said. “Generally, farms that transfer multi-generations have more of the mindset that they don’t expect the farm to be bought each generation. We can’t always avoid that, but if there are going to be such buyouts, let’s try to balance that with family fair price and family harmony with the future viability of the farm.”

He said the guiding points for successful farm transitions for the role of a trusted adviser are: helping to get the succession plan started; establishing a safe environment; creating a structured agenda; clarifying family and business goals; accessing readiness and developing successors; structuring the business for continuity; integrating estate planning with succession; planning for transition; communicating and documenting the plan; and being an ongoing support and source of good information for families.

Downey said other questions to ask are: “What does success look like for your family in 10 years? What role do you see yourself playing in the farm in five years? What concerns you most about transitioning the business?

“You notice these are purposely designed and open-ended questions to get them (families) thinking and talking about it,” he told webinar attendees. He added that 15 minutes daily or an hour and a half a week should be scheduled for strategic succession planning.

Dave Mielnicki, ASAC president, said, “Helping farm families navigate transition planning is one of the most vital services an agricultural consultant can provide today. The ASAC is proud to offer timely, relevant education like this webinar, not only for our members, but for anyone passionate about preserving the future of agriculture.”

The ASAC’s 2025 Annual Conference is Nov. 2-4 in Indianapolis. The conference will feature national experts in farm management, finance, transition planning, agricultural technology and rural entrepreneurship.

The event is open to both members and non-members. Conference details and registration information are available at: https://www.agconsultants.org/2025_annual_conference.php.