Farm succession “perfect storm” is swirling
A financial advisor says a perfect storm is disrupting farm succession plans.
Ryan Swalwell with Heartland Financial Resource Group says exit and transition planning continues to gain importance with well over half of all landowners 65 years or older.
“Other things that are kind of coming into that dynamic are the land values, (which have) increased almost 30 percent in the last year.”
Speaking to Brownfield at the Iowa Ag Expo in Des Moines Tuesday, he says low interest rates are expected to rise, meaning families cannot stay in a deferral mentality.
“A lot of people think that their planning is maybe something they can put off, but the Fed has come out talking about interest rate hikes this year. So it’s going to be harder to borrow money and finance some of these things that farmers need to be doing to plan for the future.”
Swalwell says uncertainties around tax policies are also making it difficult as families work through the farm succession process.