Land Stewardship Project

Land Stewardship Project
  • About Us
    • Our Mission
    • Long Range Plan
    • Staff Directory
    • Board of Directors
    • Contact Us
    • Past LSP Projects
    • Employment & Volunteer Opportunities
    • LSP Publications
  • The Latest
    • 40th Anniversary Events
    • Tell us an LSP Story
    • Songs for the Soil
    • CSA Farm Directory
    • Upcoming Events
    • News
      • News Releases
      • Media Contacts
      • LSP in the News
    • Blog
    • Podcast
    • Land Stewardship Letter
    • LIVE-WIRE Sign-up
    • Myth Busters
    • Fact Sheets
    • Farm Crisis Resources
  • For Farmers & Landowners
    • New Farmers
      • Farm Beginnings Class
      • Journeyperson Course
      • Farm Dreams Workshop
      • Farmland Clearinghouse
      • Accessing Farmland
      • Beginning/Retiring Farmer Tax Credit
      • Beginning Farmer Profiles
    • Retiring Farmers & Landowners
      • Farmland Clearinghouse
      • Conservation Leases
      • Beginning/Retiring Farmer Tax Credit
      • Land Transition Tools
      • Transition Stories
    • Soil Health
      • Cover Crops
      • Grazing
      • No-till
      • Microbiology
      • Soil Builders’ Network
      • Soil Builders’ E-Letters
    • Cropping Systems Calculator
    • Conservation Leases
  • Creating Change
    • Community-Based Food Systems
      • Community Food Webs Learning Circles
    • Policy Campaigns
      • Soil Health & Climate Change
      • Healthcare
      • Factory Farms
      • Federal Policy
      • State Policy
      • Developing Leadership
      • Caucus for Land Stewardship
    • Justice & Stewardship
    • Organizational Stewardship
    • Building People Power
  • Get Involved
    • Take Action!
    • Upcoming Events
    • Land Stewardship Action Fund
    • Connect with LSP
      • Stay Connected
      • Join, Donate, or Renew Today!
      • Shop
      • Employment & Volunteer Opportunities
      • Legacy Giving
    • Network with LSP Members
      • Farmland Clearinghouse
      • Soil Health
  • Join, Donate, or Renew Today!
  • Stay Connected
  • Contact Us
  • Shop
Search
More...

Farm Transitions Profile: The Making of a Successful Farm Owner

When Timing is Everything, Sometimes it Pays to Manipulate the Calendar

By Brian DeVore
August 24, 2021

Share

  • Facebook
  • Twitter
  • Pinterest
  • email

Harvey Benson had a simple transition plan for the farm that had been in his family since the late 1860s: he would continue living on those 160 acres until he died, and then it would be passed on to his partner, Bonita Underbakke. In fact, when people ask him if he’s lived on the farm all his life, the 90-year-old quips, “Not yet.” Bonita is 16 years his junior and they have grown quite close since they started dating in 2009 or so. Didn’t this arrangement make sense?

When she learned of this proposal, Bonita, not one to mince words, had a response that was clear and to the point: “That’s not a plan.”

What followed was a half-a-dozen years of discussions, some quite difficult, around creating a more nuanced transition plan for the farm in southeastern Minnesota’s Fillmore County. With the help of a young couple who has an interest in farming, community, and land stewardship, the older couple created an arrangement that strikes a balance of allowing Harvey to live out his wishes without putting an undue burden on Bonita when it comes to estate issues. A bonus is it provides a land access opportunity for beginning farmers while building soil health. It required creative thinking, but Harvey is glad he was pushed to think deeper about the future of the farm — it’s changed not only how he views the land, but how he views himself.

On a spring afternoon, as he gives a tour of the farmstead, Harvey reflects on how he has transitioned from being a “failed farm owner” to someone who is successfully passing on a stewardship legacy.

“I avoided even starting to think about passing on this farm because that would change my relationship with the land,” he says. “But ultimately, I’m very happy with this decision.”

Lifelong Learner

Harvey likes to say that “every decade you learn something more,” and it’s clear his curiosity about the world around him is boundless. He was born in the house he lives in now, and while he was growing up the farm was a typical diversified crop and livestock operation. After graduating from the University of Minnesota, Harvey was a social worker in the area. He eventually moved to Finland, where he taught English at the Helsinki University of Technology for 30 years. After retiring, he traveled around the world for a few years before returning to the farm, where he’s lived for the past two dozen years. During that time, the farm’s been rented to a neighbor who grows corn, soybeans, and alfalfa on the land.

Harvey has no children, and when he entered his 80s, he started thinking more about the future of the land. In 2016, Bonita, a long-time Land Stewardship Project member, talked him into attending a series of Farm Transition workshops the organization puts on periodically. The workshops, which are led by LSP staffer Karen Stettler, offer participants access to legal experts, as well as people who can help retiring farmers and non-operating landowners do the kind of goal setting needed to transition a farm in a way that meets their financial and conservation desires.

Harvey says the workshop was valuable, but he still didn’t feel he was in a position to pass off the farm to the next generation, especially if it meant moving off the land.

Bonita, who is a self-identified “pushy person,” along with Stettler, talked to Harvey about how selling to the highest bidder would likely mean the farm would just become one more field in a bigger cropping operation. Harvey started attending LSP workshops that covered, among other things, building soil health through practices like cover cropping, managed rotational grazing, and no-till. He was intrigued that working farmland could be good for the landscape.

“I’ve got that LSP bumper sticker that says, ‘Let’s Stop Treating Our Soil Like Dirt.’ I look at that every day and think to myself, ‘Good for them,’ ” says Harvey.

And through the Farm Transitions workshop and other LSP meetings, Harvey became aware that beginning farmers face significant barriers when it comes to accessing affordable land.

“Young people, unless they inherit the farm, there’s virtually no way they can get started,” he says. “So I wanted young people with good ideas and who were going to take care of the soil. I wanted people who would be in the community, part of the community.”

Community Couple

Enter Aaron and Amy Bishop. The couple live in nearby Harmony and have roots in the community. Aaron grew up two miles from Harvey’s farm — his family owns and operates Niagara Cave, which offers tours of the underground cavern. He also serves on the local school board, and is involved with other nonprofits. The couple is remodeling an old bank building on the Main Street of Harmony, and plan on turning the upper level into Airbnb lodging and the lower level into space for a future business.

Amy grew vegetables and marketed them through the farmers’ market and Community Supported Agriculture models for four years, and worked at Seed Savers Exchange in nearby Decorah, Iowa, for an additional six. It’s her goal to farm fulltime, and she had been looking for land in the area for a number of years. Both are mindful of land stewardship — Aaron has a geology degree and through his experience studying and exploring southeastern Minnesota’s karst geology, is intimately aware of the oftentimes fraught relationship between land use on the surface and water quality underground.

To top it off, the young couple — he’s 30 and she’s 38 — is close friends with their older counterparts (Harvey and Bonita served as their marriage witnesses). In short, they checked a lot of boxes. “Aaron and Amy are the family Harvey didn’t get around to having earlier,” says Bonita.

There’s just one catch: since they had never anticipated being able to afford 160-acres of land, the Bishops aren’t quite ready to take over management of the entire farm. Timing is the great enemy of successful farm transfers. It’s difficult to align when the landowner is ready to move on with when there is a new farmer ready to step in. But the two couples have come up with ways to manipulate the calendar and fit it to their situation.

Back to the Books

In January, the Bishops officially took over ownership of the farm. However, Harvey will continue to live on the land and call it home for as long as he wants. Even though he’s convinced the young couple’s worldview perfectly matches his values and wishes, Harvey says it’s still difficult to realize he’s no longer the owner.

“Joining futures with them was absolutely the right decision, but it comes with mixed emotions that still rise up once in awhile,” he says.

Because of Harvey’s generosity, the transition resembles a family land transfer more than a sale between two unrelated parties, which made it necessary to make certain the legal details were taken care of to deal with issues like probate law and the “clawback” of assets that can occur if a former landowner needs to go into long-term care. The two couples worked with a local attorney who specializes in ag law; the process required many calls, meetings, and e-mails.

“Harvey was resolute when it came to his expectations of the land transition,” Aaron recalls. “There were multiple ways we could have gone about it, but he wanted no mortgage and no interest involved.”

In order to meet those criteria, the attorney had to delve into notes he’d taken during college classes on seldom-used concepts.

Aaron and Amy will make payments on the farm for 20 years, which will likely cover Harvey’s lifetime; after that, Bonita will receive them. Any payments remaining after Bonita’s passing can be donated to charity. In the end, Harvey will have ended up selling the farm to the younger couple for about half the going market rate.

“Essentially, we will be taking care of Harvey and Bonita until then, with paying off the farm to the agreed-upon amount and time,” says Amy. An unofficial part of this arrangement is that the younger couple will continue doing something they’ve already been doing the past few years: provide Harvey support with maintaining the yard, his house, and his garden.

The purchase agreement includes “a right of reentry” — if Aaron and Amy don’t live up to their promise to keep it a family farm utilizing conservation practices and/or if they don’t allow Harvey to remain living on the property, then the older man, or Bonita, can reclaim ownership.

For Now: Stewards, Not Farmers

The younger couple has also developed a creative work-around when it comes to the other timing issue involved — they may not be ready to farm the land’s 145 tillable acres fulltime, but in the meantime they want to make sure it’s stewarded to Harvey’s specifications. As a result, after consulting the lease templates included in LSP’s Conservation Leases Toolkit, they approached the current renter with three options that provide the opportunity to reduce his rental rate by implementing additional soil-friendly practices — the more cover crops he implements, the lower the rate. The renter recently signed a two-year lease, and for the 2021 growing season went with the middle option offered: planting cover crops on half of the row-cropped acreage.

Amy and Aaron based their rental option calculations on the cost of putting in a cover crop. They also provided the renter resources on cover crop cost-share programs available through agencies like the USDA’s Natural Resources Conservation Service. Fortunately, Harvey has maintained the fencing on the land, so the renter has the ability to graze his cattle on the cover crops.

“It’s fortunate for us the neighbor is willing and able to continue renting because it’s going to ensure that something’s going to happen under the conservation terms that we worked out,” says Aaron.

The new lease buys the Bishops time to develop and implement various plans for the farm, including returning a portion of it to native prairie. This year, Amy is using three acres on the farm to grow a contracted vegetable seed crop for Seed Savers Exchange and to conduct small grains trials. Meanwhile, Aaron will continue working as a cave guide and substitute teacher.

Harvey is thrilled with this new arrangement. He had previously approached the renter about adopting soil health practices, but the conversations were difficult, with hurt feelings involved. With new owners taking over, it opened up the opportunity to renegotiate the lease without the burden of decades of tradition hanging over their heads. Farm transition experts say that a change in ownership offers a prime opportunity to modify a lease to include more conservation requirements.

Finally, the foursome has come up with a plan to deal with the other bugaboo when it comes to farm transfers: where will everyone live? Harvey has made it clear where he’s residing, and Aaron and Amy will eventually be making their home in a 1950s-era corn crib that is downhill from the house.

After Harvey shows off his tree plantings on this recent spring day, the young couple provide a tour of the crib they are remodeling, pointing out where different rooms and work places will be. They also talk excitedly about future plans for the farm that include the possibility of providing opportunities for other beginning farmers who might want to do everything from rotational grazing to small grains production.

Harvey is excited too. In fact, he asks, why not live a little longer just to see how all these plans work out? “I’m looking forward to this,” he says with a smile.

Brian DeVore is the editor of the Land Stewardship Letter and the author of Wildly Successful Farming: Sustainability and the New Agricultural Land Ethic.

Category: Blog

Conservation Leases

LSP has developed a toolkit for people seeking to utilize leases that emphasize building soil health and other conservation practices. For fact sheets, templates, and other resources related to developing conservation leases, and to sign-up for LSP’s conservation leases update list, click here.

Farm Transition Tools

LSP has developed numerous resources to help retiring farmers and beginning farmers with transitions to the next generation. Check them out at our Farm Transition Tools web page. On that web page, you will also find information on the Minnesota Beginning Farmer Tax Credit, which provides an incentive to sell or rent land or other agricultural assets—machinery, buildings, facilities, livestock, etc.—to a beginning farmer. There is also a tax credit available for beginning farmers who participate in a financial management program like Farm Beginnings.

Farmland Clearinghouse

Are you a beginning farmer looking to rent or purchase farmland in the Midwest? Or are you an established farmer/landowner in the Midwest who is seeking a beginning farmer to purchase or rent your land, or to work with in a partnership/employee situation? Then consider having your information circulated via LSP’s Seeking Farmers-Seeking Land Clearinghouse.

Upcoming Events

×

March 2023

Monday March 27

6:00 pm – 7:00 pm
MinnesotaCare Public Option: Virtual Information Session
Monday March 27
6:00 pm – 7:00 pm
MinnesotaCare Public Option: Virtual Information Session

Every Minnesotan deserves quality, affordable healthcare. But right now, too many Minnesotans have no choice but to purchase health insurance that is too expensive to use, are excluded from health coverage because of their immigration status, or are unable to leave their job or start a business because of the high cost of health insurance.

The MinnesotaCare Public Option (HF96/SF49) proposed this legislative session would allow more Minnesotans the option of buying into MinnesotaCare, paying a premium based on their income.

Join Minnesotans across the state for a virtual information session to learn more about the MinnesotaCare Public Option being considered at the state Capitol, and what YOU can do to help pass it this year.

The virtual webinar will be held on Zoom. Registration is required here.

The co-hosts of this meeting are: TakeAction Minnesota, Rural Organizing Project, the Land Stewardship Project, and more. For more information, click here.

Wednesday March 29

7:00 pm – 9:00 pm
Community Foods Webs Learning Circle: Changing How We Think About Food System Economics
Wednesday March 29
7:00 pm – 9:00 pm
Community Foods Webs Learning Circle: Changing How We Think About Food System Economics


Building strong community food networks where we live can move us powerfully toward our vision for functioning local and regional systems that support regenerative farming and provide all people with the nourishing foods they want and need. To explore how communities around the country are making this happen, in March LSP is hosting three learning circles focused on the book Building Community Food Webs, by Ken Meter.

Join us for just one session, or all three! Each session we’ll gather on Zoom for two hours — beginning at 7 p.m. — to discuss major themes from the book and generate ideas for our own communities.

Reserve your spot by signing up on our website:https://landstewardshipproject.org/learning-circles. Questions about getting signed up? Reach out to LSP’s Elizabeth Makarewicz at EMakarewicz@landstewardshipproject.org.

April 2023

Tuesday April 4

9:00 am – 12:30 pm
Wholesale Readiness Training for Farmers
Tuesday April 4
9:00 am – 12:30 pm
Wholesale Readiness Training for Farmers

MISA, UMN Extension and Renewing the Countryside are offering training and one-to-one technical assistance for farmers who want to grow their operation into wholesale markets. Wholesale isn’t just for large-scale distributors. You can use this training and support team to prepare to sell to schools, restaurants, grocery stores and hospitals in your community. Participating farmers will be eligible for $500 mini-grants to cover expenses related to launching a wholesale enterprise. 

For details, click here.

Thursday April 6

12:00 pm – 1:30 pm
Family Farm Breakfast Lobby Training
Thursday April 6
12:00 pm – 1:30 pm
Family Farm Breakfast Lobby Training

Join LSP to prepare for the 2023 Family Farm Breakfast Lobby Day on April 13! The training will be an opportunity to prepare how we will influence our elected officials to win real change on key LSP issues like soil health and climate solutions, healthcare reform, taking on corporate consolidation in agriculture, and more. This training will include: background on your legislators; templates for a legislative meeting; workshopping how to share our stories in a powerful, concise way; logistics; and more!

For more information and to register, click here.

6:00 pm – 7:30 pm
Family Farm Breakfast Lobby Training
Thursday April 6
6:00 pm – 7:30 pm
Family Farm Breakfast Lobby Training

Join LSP to prepare for the 2023 Family Farm Breakfast Lobby Day on April 13! The training will be an opportunity to prepare how we will influence our elected officials to win real change on key LSP issues like soil health and climate solutions, healthcare reform, taking on corporate consolidation in agriculture, and more. This training will include: background on your legislators; templates for a legislative meeting; workshopping how to share our stories in a powerful, concise way; logistics; and more!

For more information and to register, click here.

View Full Calendar

Recent Posts

  • Tell Your Legislators to Pass the MinnesotaCare Public Option March 27, 2023
  • Tell the Legislature to Reinstate the MPCA Board March 21, 2023
  • LSP Statement on Daley Dismissal of District Court Case March 20, 2023
  • Update on LSP’s Leadership Transition March 10, 2023
  • Legislation to Reinstate MPCA Community Board gets 1st Hearing in MN Senate March 9 March 8, 2023

Montevideo

117 South First Street
Montevideo, MN 56265

(320) 269-2105

Lewiston

180 E. Main Street
Lewiston, MN 55952

(507) 523-3366

Minneapolis

821 E. 35th Street #200
Minneapolis, MN 55407

(612) 722-6377

Copyright © 2023 Land Stewardship Project. All rights reserved.

https://landstewardshipproject.org/farm-transitions-profile-the-making-of-a-successful-farm-owner