What happens when you step away from your farm?
“You’ve worked the land for decades—through changing seasons, shifting markets, and long days that begin before sunrise," says Jason Castellan, Co-Founder & Chief Executive Officer, Skyline when he spoke with Farms.com.
“You know every acre, every decision, every responsibility that comes with running a family farm. But there’s one part of the operation that may still feel uncertain: what happens when you step away?”
You’re not alone. In fact, according to RBC, nearly 60 per cent of Canadian farmers will be over 65 years old within the next decade, and 88 per cent don’t yet have a written succession plan. Meanwhile, the number of younger farm operators has dropped by more than half since 2001. These numbers tell a clear story: the future of Canadian farming depends on thoughtful planning today.
Passing on a farm isn’t as simple as handing over the keys. It’s a complex, deeply personal process that blends legal, financial, and emotional decisions. While succession planning might seem like just another task on your to-do list, with the right professional guidance, it becomes something far more meaningful—a strategy to protect your life’s work and ensure your values live on through the next generation.
The Building Blocks of a Good Plan
“Getting started doesn’t have to feel overwhelming," encourages Castellan. “At its core, a strong plan rests on a few essential pillars.”
First, a legally binding will is critical. It clearly outlines who inherits what—whether it’s the family home, farmland, equipment, or financial assets. Without it, even the most harmonious families can face confusion, delays, and unnecessary legal costs.
Equally important is having a clear ownership structure. This means understanding who owns what and how those assets will be transferred. Whether it involves shares in a family farming corporation, land titles, or equipment ownership, clarity here helps avoid disputes and ensures a smoother transition.
“Tax planning is a vital, yet often overlooked, pillar of succession planning,” explains Castellan. “When transferring farmland or other assets, it’s crucial to understand the tax implications—including capital gains, how the Lifetime Capital Gains Exemption may apply, and how charitable giving could help offset taxes.”
Done right, tax planning can save families hundreds of thousands of dollars and ensure more wealth is passed on to the next generation.
Bridging Generations Through Smart Investment
“Succession is about ensuring the retiring generation can step back with dignity and financial security, while also empowering the next generation to move forward with confidence,” says Castellan.
Many farmers have spent decades reinvesting in their land and operations, often without building up pensions or large cash reserves.
That’s why creating a financial plan that doesn’t rely solely on selling the farm is so important. A well-rounded plan can support both generations by providing stability, flexibility, and room to grow.
“One increasingly valuable strategy is diversification,” says Castellan. “Private alternative investments, such as Canadian real estate investment trusts (REITs) or renewable energy infrastructure funds, can offer stable, tax-efficient income that isn’t tied to the ups and downs of commodity prices or public markets.”
For retiring farmers, these investments can provide a steady, reliable income throughout retirement. Castellan says this allows farmers to maintain financial independence without needing to sell core farm assets or compromise the integrity of the operation. (Skyline offers several Private alternative investments that may be of particular interest to farmers.)
At the same time, these types of investments can benefit the next generation. Passive income, like regular distributions private REITs can provide, can be reinvested into the farm—funding new equipment, expanding operations, or weathering tough seasons.
In this way, diversification becomes more than a retirement strategy; it becomes a bridge between generations, supporting long-term sustainability and shared success.
Where Do You Begin?
By incorporating these financial strategies into a broader succession plan, farm families can move forward with confidence, knowing that both the legacy and the livelihood are secure.
Start with open, honest conversations about your goals, concerns, and vision for the future. If you don’t already have a will, that’s the most important legal tool to put in place. And when you’re ready, seek out investment professionals who understand the unique needs of farm families. They can help you explore smart tax strategies, identify investments that align with your values, and build a plan that reflects your legacy goals.
Because at the end of the day, succession planning isn’t just about what you leave behind, it’s about what you set in motion. It’s about ensuring that the land you’ve nurtured, the values you’ve lived by, and the legacy you’ve built continue to thrive for generations to come.
Photo Credit: Pexels - Brandon Randolph