Agricultural Economics, Department of
Date of this Version
7-9-2025
Document Type
Article
Citation
Groskopf, J. “Navigating Farm Succession Without a Family Heir: Leasing Land to Non-Related Parties,” CAP Series 25-0702, Center for Agricultural Profitability, University of Nebraska-Lincoln, July 9, 2025. DOI: 10.32873/unl.dc.cap071.
Abstract
This article is the sixth in a series supporting farm and ranch owners facing this transition. If you're just joining, I recommend reading the earlier pieces at cap.unl.edu for helpful background. In the first article, I encouraged you to think differently about your legacy. It doesn’t have to end with your family. You might consider offering opportunities to employees, tenants, or neighboring producers.
Helping someone outside the family doesn’t mean shortchanging your heirs. There are ways to support other producers while still allowing heirs to retain direct or indirect ownership of land. Often, this means creating a legal agreement that allows someone, like an employee, tenant, or neighbor, to lease land from your heirs, company, or trust.
Now where does the lease agreement come into play? It depends on what other estate and transition tools (wills, trusts, companies, etc.) you are using. Work with your advisory team to know exactly how to structure your lease agreement. Here are the specific clauses the agreements should cover as it relates to leasing to an unrelated party of your choosing.