See statistics on transferring the agribusiness to future generations, and how AgAmerica Lending has lent a helping hand to make such dreams a reality.
Many in the ag industry dream of passing their family farming tradition on to the next generation. It’s a collective dream that will be necessary—along with those just entering the ag industry—in order to meet the demands of a growing population. AgAmerica Lending surveyed over 500 farming operations all across the U.S. to explore the topic of transferring the family agribusiness to future generations. See the results of our survey, and how we’ve helped others—and how we can help you—to pass your agribusiness on to future generations.
Whitepaper: Planning for the Future
From the results of our survey, AgAmerica put together a whitepaper: Families and Their Farms: Planning for the Future. Our study found that nearly 75 percent of respondents were part of family farms where multiple generations or multiple family members of one generation worked together on the operation. Another nearly 10 percent reported they expect to become a family farm and pass on the agribusiness to future generations.
Of the respondents, nearly 40 percent definitely planned to have future generations take over the family farm, while another nearly 30 percent hoped their dream of passing the family farm on would become reality. In terms of a timeline, over 31 percent maintained they planned to start the transition to the next generation in the next five to 10 years and another 35 percent intend to transition in 10 years or more.
AgAmerica Lending’s Helping Role
For all those surveyed who shared they planned to transfer the family agribusiness to the next generation, the leading concern was “setting the next generation up for success” with 63.9 percent responding that it was their greatest worry. This is one area where AgAmerica’s custom loan packages really shine. Examples of the successful transitions we’ve helped include:
- A $400,000 line of credit that allowed a fourth-generation row crop farm to buy over 70 acres of additional land and ensure the success of the fifth generation. Read the story here.
- A term loan and $1.27 million line of credit which helped a father-and-son-owned peanut farm pay off debt, expand the operation, and prepare for the future. Read the story here.
- A term loan and line of credit that helped a tobacco farm to expand when the farmer’s son joined the agribusiness. Read the story here.
AgAmerica Lending’s custom loan packages are crafted to help family farms grow and succeed, and to continue that growth into the next generation. If you’d like to discuss how we can help your agribusiness to set the next generation up for success, contact us to explore options with a knowledgeable team member.