The Need

Farm transition planning is a critical yet complex process for producers, often hindered by the challenge of collecting and organizing asset information. Without a clear understanding of what assets are owned, their value, and how they are titled, farm transition planning becomes a guessing game rather than a precise and strategic plan. This uncertainty can lead to inefficient transitions, potential conflicts, and financial loss.

The Technology

The Farm and Resource Management Spreadsheet (FARMS), developed by Robert Moore and David Marrison of The Ohio State University's Farm Financial Management and Policy Institute, is a comprehensive tool designed to streamline the farm estate planning process. FARMS provides an organized template to assist in the identification, valuation, and titling of farm assets. It also collects essential information, such as executor details, trustee assignments, and funeral instructions, crucial for a seamless transition. Additionally, FARMS enables users to run different scenarios, helping to determine the optimal distribution plan for farm transitions.

Commercial Applications

• Farm transition and estate planning
• Asset management for agricultural enterprises
• Financial planning for farm owners
• Legal and advisory services for agricultural clients
• Scenario analysis for farm distribution strategies

Benefits/Advantages

• Comprehensive Asset Management: Streamlines the collection and organization of asset information, ensuring no details are overlooked.
• Strategic Planning: Facilitates scenario analysis, allowing for informed decision-making in farm transition planning.
• Ease of Use: Provides a user-friendly template, making it accessible for both producers and advisors.
• Enhanced Accuracy: Reduces the guesswork involved in farm transition planning, leading to more precise and effective strategies.
• Integrated Information: Consolidates essential details, from asset valuation to executor and trustee identification, in one comprehensive tool.