As average age of farmers rises, cultivate continuity amid change with farm succession planning

COLUMBIA, Mo. — Data from the 2022 USDA Census of Agriculture indicates that the age of the average farmer continues to increase in Missouri and across the country.

In the Show-Me State, the average operator is 57.9 years old, a slight 0.9% increase from 2017 census data; this trend closely mirrors the national average, which increased by 1.0% for an average operator age of 58.1 years old.

Looking to younger generations of farm operators offers some hope. In Missouri, farm operators under 25 years old increased 1.8% from 2017 and increases of 2.2% and 6.9% were seen for operators 25-34 years old and 35-44 years old, respectively. From a national perspective, the number of farm operators under 25 increased nearly 12% and a 9.3% uptick was recorded for operators 35-44 years old.

As the composition of America’s farmers and ranchers shift, how are operations prepared to transition management of the country’s nearly 2 million farms? A glance at decision-making trends suggests a focus on communication and planning can make a significant impact.

Decision-making on the farm has seen a shift, according to census data. When considering family members’ involvement in decision-making for the farm business, downward trends are seen across the board—in Missouri, the number of individuals participating in decision-making have declined from 2017. Day-to-day decision-making involvement declined by nearly 4% between 2017 and 2022, and declines of 7.3% were seen for involvement in both financial management- and succession planning-related decisions.

Wesley Tucker, agricultural business specialist with University of Missouri Extension, says these insights are indicators of the need for communication and initiation of a succession plan.

In a press release, Tucker said, “As we see shifts in farm operator demographics, on top of changes in decision-making participation, it becomes even more important to start talking about roles and transition within the family farm business. Being proactive and having tough conversations now can help operators protect the farm business and maintain family harmony.”

Tucker notes that an aversion to conflict often stops many farm families from pursuing management transitions and succession plans. However, engaging intentionally in family business meetings and leveraging free resources from MU Extension can offer guidance in navigating difficult topics like roles, responsibilities and expectations for members of the farm business.

Available resources include:

• Guides encompassing role clarification, phases of management transition, farm meetings and short-term operating plans
• Worksheets to guide farm families through transition planning, role mapping and scheduling family farm meetings
• Videos and in-person educational opportunities to explore topics within farm succession planning

“Keeping the farm in the family is the goal of nearly all operators,” says Tucker. “Extension has resources and professionals who can help you navigate succession planning, whether you’re just starting the conversation or ready to dive deeper. Take the time and have the conversations now to ensure the groundwork is laid for the next generation.”

Find MU Extension resources for farm succession planning at http://muext.us/FarmSuccessionPlanning.