The average age of the American farmer is around 60 years old. An exact number is hard to find since different sources define farmers differently. For the purpose of our discussion, an exact number is not important. Suffice it to say “we ain’t gettin’ any younger.”

During the next 10-20 years, we will need to transition our food production system to the next generation of farmers. This is a process that works differently in each family. In some families the transition is smooth, well planned and amenable. While in other families it is bitterly contentious and often leads to the breakup of the operation.

While each family must face this issue in its own way, there are a few things that can make this process easier. Unfortunately, current government policy will hinder this vital transition process and, in some cases, actually make it impossible to pass on the farm to the next generation.

Despite all the liberal claptrap about corporate farms and big business agriculture, the overwhelming majority of the farming operations that produce the food we eat are family owned and run operations.

This is not likely to change in the future because farming is too high risk and labor intensive for most corporations to get involved in. Investors may buy farmland, but they will hire a family farmer to run the operation. Thus, providing an opportunity for young, well-educated entrepreneurs to assume control of the food, fiber, and fuel production systems of the United States is important.
Yes, many policymakers and most consumers see the family farm as a lifestyle choice rather than a business. As Russ Parsons, the food editor of the Los Angeles Times recently wrote, “Farming without a financial motive is gardening.”

Farming is a business; and, if we want to see these businesses survive, we need policies that promote the growth of the operations. The term “sustainability” is one that is used a lot these days, usually in connection with how a farm produces food. But farms must also be financially sustainable; and, unless Congress acts soon, that may be in danger.

On Jan. 1, the current estate tax rates will change. They will jump to 55 percent on assets of $1 million and more. Even a small farm will be above the $1 million mark, and those who inherit that farm when the owner dies will face a large tax bite. More than almost anything else, this hike in the estate tax will hinder the next generation from taking control of our nation’s food production system.

The Obama Administration has made rural development a top priority. Yet, they have missed the point that a financially strong and sustainable food production system is a key component of a vibrant rural economy. If the next generation of tech savvy farmers cannot take over the family farm, all the rural broadband access that USDA has spend billions of dollars installing won’t mean a thing.
A farmer will tell you that the key to growing a good crop is good soil. Likewise, the key to the future of agriculture is policies that promote growth and opportunity.

I have been fortunate to live in a state with a Governor and Lt. Governor who have fostered pro-growth policies for agriculture.

As a result, we have seen growth in several sectors of the ag economy - growth that did not require mandates, bailouts or stimulus funds.
For example, the Hoosier poultry industry has experienced 40 percent growth in the past four years. Most of this growth was in the expansion of current in state operations. This has resulted in more jobs, more tax dollars being paid, and more economic activity in rural communities.

The time to start insuring the future of the family farm is now. It is not something we can put off for another decade. We need to begin to help foster the transition now.

Raising the estate tax exemption and lowering the rate is a start, but much more needs to be done on both the state and federal levels to bring the next generation onto the land to provide a safe, abundant, and affordable food supply for the future.

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Gary Truitt may write to him in care of this publication.