In today’s Beef Buzz, senior farm and ranch broadcaster Ron Hays speaks with Oklahoma State University’s Dr. Shannon Ferrell discussing ranch transition at the Texas Cattle Feeders Convention. As he explained, “A lot of people really understand the importance of our farm transition issue. It’s become very real to people as they realize the horizon that we have and the scope of the issue, and how many ag assets we’ve got to transfer over the next 20 years.” Ferrell emphasized that the topic is now “front and center in a lot of people’s minds.”
He pointed out that the stakes are incredibly high for agriculture, particularly in the cattle industry. “Cattle producers, especially big ranches… wouldn’t have a hard time at all hitting three, four, five million dollars worth of assets,” he said. Ferrell added that, taken together, “over the next 20 years, it looks like we have about one trillion—with a T—dollars’ worth of farm assets that we have to find some way of getting from their current ownership and management to their future ownership and management.”
Ferrell also noted that recent federal tax policy changes have helped give producers more stability as they plan transitions. “If that tax change which was made in the 2017 Tax Cuts and Jobs Act hadn’t been extended, it would have sunset at the end of this year,” he explained. “But the One Big Beautiful Bill Act… gave us some stability in tax policy going forward for the cattle producer and others that are in agriculture.”
When it comes to tackling such a complex process, Ferrell encourages ranchers to take it step by step. “You take a journey of a thousand miles with one step,” he said, outlining a five-step approach to transition planning: “Number one, just do an inventory… Step two is have a talk… Step three, then, is having a plan… Step four is will… And then step five is, don’t stop.” He reminded producers that planning is an ongoing process: “Lots of people think, ‘Oh, well, I’ve got my will or my trust, I’m done.’ And you’re never done.”
Finally, Ferrell stressed that certain elements of estate planning are essential for everyone. “There are six non-negotiables,” he said, listing them as: “a guardian nomination if you have kids under 18, beneficiary designations, a durable power of attorney, a plan for long-term care, and a will.” He summed up his advice by saying, “No matter who you are, no matter what your asset mix looks like, have a set of instructions for how we’re going to allocate your property should something happen to you.”
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Ag Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
