InvocationJustin Ballew

ANR AgentUGA Extension – Decatur County

NetworkingBreakfast

WelcomeDr. Kent Wolfe

Director, Center for Agribusiness and Economic Development, University of Georgia College of

Agricultural and Environmental Sciences

Local Comments

Mr. Rome Ethredge

County Coordinator/ANR AgentUGA Extension – Seminole County

Summary of the 2014 Georgia Agricultural & Agribusiness Outlook

Dr. Nathan Smith &Dr. Curt Lacy

Extension Economists,Department of Agricultural & Applied Economics

The University of Georgia College of Agricultural and Environmental Sciences

Animal Products and Timber Outlook

Dr. Curt LacyExtension Economist-Livestock

Key Factors Impacting Livestock Markets and Profitability

• Economy (consumer demand)

• Crop prices– Feeder cattle demand– Sector profitability

• Big picture items

05/30/13

Livestock Marketing Information CenterData Source: Bureau of Economic Analysis

12/06/13Livestock Marketing Information CenterData Source: Bureau of Economic Analysis, Compiled & Analysis by LMIC

Beef Cattle Situation & Outlook

01/05/0

8

03/15/0

8

05/24/0

8

08/02/0

8

10/11/0

8

12/20/0

8

02/28/0

9

05/09/0

9

07/18/0

9

09/26/0

9

12/05/0

9

02/13/1

0

04/24/1

0

07/03/1

0

09/11/1

0

11/20/1

0

01/29/1

1

04/09/1

1

06/18/1

1

08/27/1

1

11/05/1

1

01/14/1

2

03/24/1

2

06/02/1

2

08/11/1

2

10/20/1

2

12/29/1

2

03/09/1

3

05/18/1

3$50.00

$70.00

$90.00

$110.00

$130.00

$150.00

$170.00

$190.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Relationship between Corn and Cattle Prices

500-600 Nearby corn futures

JAN

APR

JUL

OCT

90

100

110

120

130

140

150

160

170

180

MED. & LRG. #1 & 2 STEER CALF PRICES500-600 Pounds, Georgia, Weekly

Avg. 2007-11 2012 2013

$ Per Cwt.

Data Source: USDA-AMS, Compiled by LMIC

Livestock Marketing Information Center

BEEF COWS THAT CALVEDJANUARY 1, 2013

(1000 Head)

RI 2

NH 4

DE 4

5

CT 6

MA 7

NJ 9

11

VT 12

MD 41

70

90

113

155

174175

191200

221

231

260

290315 360

364

375

390

454

486490

510

527

610

651

686

694

715

851

908

912

922

925

10281328

1506

1688

1754

1757

1805

4015

0 to 155155 to 390390 to 912912 to 4016

Livestock Marketing Information CenterData Source: USDA-NASS

U.S. Total: 29295

02/04/13

-550

-119 -100

-79

-58-45

-44

-38

-32

-24

-22

-20

-20

-15-10

-10

-10

-10

-8

-5

-5

-5

-5

-4

MD -2

-1

MA -1NH -1

0

RI 0

DE 1

1

1

NJ 1CT 2

2

VT 24

4

4

5

10

2229

30

33

41

50 60

78

-550 to -15-15 to -1-1 to 44 to 79

CHANGE IN BEEF COWS NUMBERSJANUARY 1, 2012 TO JANUARY 2013

(1000 Head)

Livestock Marketing Information CenterData Source: USDA-NASS

U.S. Total: -862

02/04/13

-1368

-328-222

-171-166

-131

-126

-110

-100

-81

-76

-72

-65

-55

-49

-49

-44

-43

-42

-38

-36-36

-35

-23

-20-15

-14

-12

-12

-10

-9MD -1

NJ -1

-1 RI 0

0

CT 0

DE 0

0

NH 0MA 1

VT 38

14

1522

28

28

74

133

-1400 to -55-55 to -14-14 to 00 to 134

CHANGE IN BEEF COWS NUMBERSJANUARY 1, 2003 TO JANUARY 2013

(1000 Head)

Livestock Marketing Information CenterData Source: USDA-NASS

U.S. Total: -3236

02/04/13

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

25000

30000

35000

40000

45000

50000

JANUARY 1 “BEEF COW FACTORY’U.S., Annual

Replacement Heifers

Beef Cows

Mil. Head

Beef cows down 3 % @ 29.3 milBeef replacement heifers up 1.8 % @ 5.20 milTotal beef cow factory down 2.5 %Expect January 1, 2014 to show decline 1-3% in cow herd.

Meat supplies were virtually unchanged for two years in a row

Source: USDA-WASDE, January 2014 Report

20122013

Projected2014

Forecast 13 vs 12 14 vs 13

Beef 26.00 25.72 24.32 -1.09% -5.76%Pork 23.27 23.20 23.58 -0.30% 1.61%Total Red Meat* 49.55 49.18 48.16 -0.75% -2.12%Broilers 36.64 37.75 38.90 2.94% 2.96%Total Poultry** 43.05 44.08 45.33 2.34% 2.76%Total Red Meat & Poultry 92.60 93.26 93.49 0.71% 0.25%

BILLION POUNDS PERCENT CHANGECommodity

Past and Projected Prices

2010 2011 2012 2013 2014 2015$40

$60

$80

$100

$120

$140

$160

$180

SE 500# steer SE 750# steer Choice fed steer SE Slaughter cow

Source: USDA, LMIC and UGA

Projected Beef Cattle Profits in 2014

• Cow-calf

• Stockers

• Finishing

Graphics source: CattleFax: Long-term Outlook. www.cattlefax.com

Beef Cattle Summary

• For 2013 expect lower production• Higher prices• Higher profits• More heifer retention

DAIRY SITUATION AND OUTLOOK

What will drive prices in 2014?

• Declining cow numbers• Strong demand for dairy

exports• Favorable feed prices• Production abroad

rebounds

Georgia Milk Production Since 2000

During this time, milk production per cow increased from 16,500 to 19,200.

Georgia Milk Mailbox Prices 2001-2014 (est.)

2014: $21.50 - $23.50

Other Considerations

• 2014 Farm Bill• Margin insurance• Tied to production controls??• Still being debated in Congress

Livestock Marketing Information CenterData Source: Iowa State University

Latest Data: November 2013

Big Story in Pork Production

• PEDV = Porcine Epidemic Diarrhea Virus.• Highly contagious type of Coronavirus• Confirmed in 22 states.• Deadly to small pigs and piglets.• Could reduce domestic pork production by 2-3

percent in 2013-2014.

Pork Summary• Expect slightly more

production• Stable prices• Improved profits

2010 2011 2012 2013 2014$60

$65

$70

$75

$80

$85

$90

$95

National Base Hog Price ($/Cwt. Carcass weight)

$/Cw

t. Ca

rcas

s

Livestock Marketing Information CenterData Source: USDA-NASS

Lower Feed Cost and 2013’s Reduced Broiler Production Leads to Expansion

Livestock Marketing Information CenterData Source: USDA-NASS, Compiled & Analysis by LMIC

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

0

20

40

60

80

100

U S POULTRY CONSUMPTION SHOULD INCREASE BASED ON INCREASED PRODUCTION AND REDUCED RED MEAT SUPPLIES

Per Capita, Retail Weight, Annual

Turkey

Total Chicken

Pounds

Livestock Marketing Information CenterData Source: USDA-NASS, Compiled & Analysis by LMIC

JAN

APRJU

LO

CT70

75

80

85

90

95

100

105

110

115

BROILER PRICES LOWER IN 2014 BUT HIGHLY PROF-ITABLE INTO 2015 (DEPENDING ON FEED COSTS)

National Composite, Weekly

Avg. 2008-12

2013

2014

Cents/Lb.

Livestock Marketing Information Center

Data Source: USDA-AMS

Big Picture Items

• Antibiotics• GMOs• Humane treatment of animals

Honey Reports 2013

Piedmont and North Georgia experienced 20-25% below normal honey yields due to:

- record amounts of rainfall - below average temperatures

Southern Georgia experienced the complete opposite with average to above average honey yields.

Due to a decrease in overall honey production, honey prices rose 11% from 2011-2012 and 10% from 2012-2013 with the trend expected to continue in 2014.

Timber and Forest Products Outlook

• Improving economy should help

• 91 bio-energy facilities planned for SEUS– 2 pellet mills in GA

• Improving exports– Hardwood to Europe– All wood and products to

China

Livestock, Poultry, and Timber Summary

• Improving economy should support demand for all livestock and poultry products.

• Lower grain prices and tight supplies will bolster demand for feeder cattle.

• Lower grain prices and increasing exports should support livestock and poultry prices.

• Higher prices and lower costs = higher profits in 2014.

Georgia Row CropsSituation and Outlook for 2014

Nathan Smith, Don Shurley, and Amanda SmithDepartment of Agricultural and Applied Economics

University of Georgia

Row Crop Situation Heading into 2014

• Challenging production season with wetter than normal conditions and cooler temperatures into middle of the summer and then dry late season.

• Supply outpacing demand in most crops.• Downtrending prices, especially since harvest.

2013 – Mixed Year For Yields

2013 Ag Forecast

2012 2013 5 Yr. Avg. RecordCorn 180 bu. 175 bu. 153 bu. 180 bu. (2012)Cotton 1,091 lb. 850 lb. 830 lb. 1,091 lb. (2012)Peanut 4,580 lb. 4,430 lb. 3,739 lb. 4,580 lb. (2012)Sorghum, Grain 55 bu. 50 bu. 45 bu. 53 bu. (2009)Soybean* 37.5 bu. 40 bu. 30.5 bu. 37.5 bu. (2012)Tobacco 2,250 lb. 1,750 lb. 2,196 lb. 2,470 lb. (‘91,’96)Wheat* 49 bu. 60 bu. 48 bu. 56 bu. (2008)

* New Record set in 2013

Corn Market Factors

• Record 2013 production.• Leveling off of corn-starch ethanol

industry.• Growing domestic use.• Increase in world production and use

(South America shifting back to soybeans).

U.S. Corn Supply and Demand

1392513150

19.8%17.5%

11.6%12.8%13.9%13.1%8.6% 7.9% 7.4%

12.4%

0%

10%

20%

30%

40%

50%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2004/05 2006/07 2008/09 2010/11 2012/13

Mil.

Bu.

Ending Stocks Production Domestic Use and Exports Stocks:Use

Record high crop in 2013/14Reversal of trend to, now increased stocks

Change in Pattern for Corn Use?

01,0002,0003,0004,0005,0006,0007,000

96/9

7

97/9

8

98/9

9

99/0

0

00/0

1

01/0

2

02/0

3

03/0

4

04/0

5

05/0

6

06/0

7

07/0

8

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

13/1

4

Feed and Residual Ethanol Exports Food Seed and Other Industrial

Million bushels Ethanol use flattening outFeed use to rebound

Corn Price Outlook• South America shifting back to soybeans. • Exports, livestock feeding and size of U.S. and

foreign corn crops will influence corn prices in the future.

• Reduced U.S. acres 2 million or more. • Prices likely to range between $4.75 and $4.• Another 14 Mil. Bushel crop would push prices

below $4.

Soybean Market Factors

• Tight US supply situation. • Global demand for soybeans and products

growing.• Bullish exports sales and shipments.• Increase in South American production.

U.S. Soybean Supply and Demand

256 449 574 206 138 151 215 169 141 150

3,289

3,304

8.6%

15.6%18.7%

6.7%4.5% 4.5%

6.6% 5.4% 4.6% 4.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Mil.

Bu.

Ending Stocks Production Total Use Stocks:Use

2013 Reversal of down trend in production and use.Tighter supply situation due to increased exports.

World Soybean Supply and UseMillion Metric Tons

Beg Stocks

Production Imports DomesticCrush

Exports End Stocks

World 60.11 283.54 104.40 239.57 107.83 70.23

U.S 3.84 88.66 0.41 45.86 39.46 4.63

Total Foreign 56.28 194.88 103.99 193.71 68.36 65.60

Argentina 24.35 53.50 0 38.50 9.7 27.98

Brazil 15.76 89.00 0.10 37.00 44.00 19.76

Major Importers 13.05 14.83 93.62 89.79 0.34 14.46

China 12.19 12.20 69 68.35 0.23 13.66

Source: Janauary 10, 2014 WASDE

Soybean Price Outlook

• Relatively tight US supply again, but World supply not as tight.

• Crush about the same as last year.• Exports key for prices heading into 2014,

China growth and positive crush returns indicate more soybean imports.

• More acres in US and GA• Prices likely between $10 and $11 per bushel.

Peanut Market Factors• Better crop than expected in 2013 leads to

large carryover. • Exports down• Domestic Use up• Overall Use down

Peanut Disappearance by Use

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10 11 12

13F0

500

1000

1500

2000

2500

3000

3500

4000

3381.5

2087

502

1147

Food Use Exports Crush Seed, Shrink, Resid Production Carryover

1,00

0 T

ons

3,775 lb Yld 3,775 lb Yld 3600 lb Yld 4,000 lb Yld

2011/12 2012/13 2013/14+10% Acres,

1.144 M+15% Acres,

1.196 M+15% Acres,

1.196 M+15% Acres,

1.196 M

Beginning Stocks 758 502 1,386 1,147 1,147 1,147 1,147 Production 1,830 3,382 2,087 2,160 2,258 2,153 2,393 Total Supply 2,715 3,943 3,506 3,339 3,437 3,333 3,572 Total Use 2,213 2,557 2,359 2,447 2,447 2,447 2,447 Ending Stocks 502 1,386 1,147 892 990 885 1,124

USDA

1,000 Tons

2014/14

Peanut Projections

Peanut Price Outlook

• Early contracts offered for $425 per ton. • Some with $50 premium for High Oleic’s like

Georgia 09B.• Peanut prices to be determined in part by

cotton prices before planting. • Acreage expected to increase 10-15%• Prices likely to range between $425 and $475

per ton.

Cotton Market Factors For 2014

• Record level of World Stocks

• Slowly improving World demand

• Acreage and production in 2014

• Chinese stocks policy and impact on demand for imports (US exports)

79.67

2007 2008 2009 2010 2011 2012 20130

10

20

30

40

50

60

70

China ROW

Crop Year

Mill

ion

Bale

sEnding Stocks, China and Rest of the World (ROW)

China has built massive stocksBut, ROW has actually declined

China An Increasing Unknownand Source of Instability

• Two years of building stocks (why, impacts)

• Imports cut by ½ this year

• News that imports will decline further for 2014

• What will happen to large stocks/reserves?

• China began to auction off stocks, mills did not want

• News that some mills are closing, relocating elsewhere

2014 Price Outlook• US and World production likely to increase

• Demand should continue to improve

• Chinese imports (US exports) may decline significantly

• Prices (Dec14 futures) likely to range between 75 and 85 cents.

• High end of this range and rallies may depend on supply shocks

2014 Outlook

• Most prices lower due to increase in production. • Demand increases on soybean side. • Corn use other than ethanol to pick up.• Soybeans may have most optimistic outlook • Fewer acres of corn and wheat in Ga and more

acres of peanuts, soybeans. Cotton, stable to up.

• Profit margins tighter.

Georgia Major Row Crops Acres Planted*1,000 Acres

2013 Ag Forecast

* Tobacco is acres harvested. 2013 are authors projections except wheat.

2008 2009 2010 2011 2012 2013 2014P ChangeCorn 370 420 300 345 345 510 385 -25%Cotton 940 1000 1400 1600 1290 1370 1400 +2%Peanuts 690 510 565 475 735 430 500 +16%Grain Sorghum 60 55 45 50 55 55 55 0%Soybeans 430 470 270 155 210 230 250 +9%Tobacco 16 14 11.4 11.9 10.5 11.5 13 +13%Wheat 480 340 170 250 290 410 270 -34%

2014 Net Returns ComparisonNon-Irrigated

2013 Ag Forecast

Corn Cotton Peanuts Sorghum Soybeans

Expected Yield 85 750 3,400 65 30

Expected Average Price $4.60 $0.78 $440 $4.14 $10.80

Crop Income Per Acre $391 $585 $748 $269 $324

Variable Costs Per Acre $289 $436 $543 $226 $238

Return Above Variable Cost $102 $149 $205 $43 $86

2014 Net Returns ComparisonIrrigated

2013 Ag Forecast

Corn Cotton Peanuts Sorghum Soybeans

Expected Yield 200 1200 4,700 100 60

Expected Average Price $4.60 $0.78 $440 $4.14 $10.80

Crop Income Per Acre $920 $936 $1034 $414 $648

Variable Costs Per Acre $653 $542 $651 $344 $321

Return Above Variable Cost $267 $394 $383 $70 $327

KeynoteMr. Will Thompson

AssociateJames, Bates, Brannan, Groover LLP

Successful Succession

Willard D. Thompson, J.D., LL.M.

“By failing to plan, you are planning to fail.”-Winston Churchill

What We Will Cover

• Tax Law Update

• Critical Questions

• Techniques

Tax Law Update

“The hardest thing in the world to understand is the income tax.”

-Albert Einstein

2014 Tax Rates• Ordinary Income – highest marginal rate

39.6%• Capital Gains and Dividends – 20%• Estate Taxes – 40%• Medicare Investment Surtax – 3.8%• Additional Medicare Payroll Tax – 0.9%

Federal Transfer Tax Changes“Permanent” Lifetime Exemption• $5.34 million in 2014 per individual• Indexed for inflation in future years• Excess over exemption is taxed at 40%• Estate and Gift Tax are unified – they share the same

exemption• Portability Annual Exclusion• $14,000 per year to any beneficiary tax free• Expected to increase at a slower rate than the lifetime

exemption

Farmers, Landowners and Taxes• Unfortunately, no matter the laws in place,

farmers and landowners often bear more than their fair share of the Transfer Tax burden

• According to the US Department of Agriculture, a farmer is more than twice as likely to owe Federal Estate Tax at death as an average person

• After they have paid a lifetime of Income Tax, their assets may be subject to Estate Taxes at their death

Business Succession

“Plans are nothing; planning is everything.”-Dwight D. Eisenhower

Succession is a Process• Succession is a whole-family process that

affects everyone in the family deeply and differently

• It will change the family system forever• More often than not, the new business

leader also becomes the next leader of the family

Succession is a Process Continued• It is not a one-size-fits-all process• Owners of family farms and agribusinesses, in particular, struggle

with unique characteristics that extend beyond the business to personal relationships

• It is the ties among parents, children, siblings, spouses and in-laws that make a succession plan a necessary part of not only managing personal wealth but more importantly the business itself

• It is important to talk with your family about establishing a business succession plan to begin the process of developing a transition for your family business

• With open communication, between generations, it is more likely that your business goals with be met while maintaining harmony in the family

Nine Reasons Family Businesses Fail to do Succession Planning

• It is not urgent• The focus on tax avoidance and “drop dead plans” creates a false sense

of security• Family member and/or employee push back• It is always safer not to change• Family businesses do not know how to undertake succession planning• Lack of courage among the next generation family business leaders• Senior generation family business leaders do not know how to be fair to

their non-employee children relative to their employee children with respect to inheritance

• Family businesses see succession planning as an event – not a process• It costs too much

What to do with the Family Business?

Basically, you have three options:• Pass it on to the family members• Plan to sell it while you are alive• Let your estate sell it

Critical Questions

“When planning for a year, plant corn. When planning for a decade, plant trees. When planning for a life, train and educate people.”

-A Chinese Proverb

Critical Questions• How do we select the next leader of the company?• When do we decide who will be the next leader of

the company?• When and how should leadership transition take

place?• How do we evaluate our new leader’s job

performance?• How do we provide meaningful careers for other

family members who are not chosen to lead?

WHO IS GOING TO BE YOU?

Find Your Successor and TRAIN HIM/HER NOW!

• 70-80% of family businesses pass to the owners’ children• Not surprisingly, 70-80% of these businesses then FAIL,

because the next generation has no idea how to manage the assets

• So…• If the farm or agribusiness will stay in the family, who will run it?• Is that person currently working in the business?• Are they being trained to run the business?• Are they currently being brought in on the decision making process?• Is there someone who can assist a family member in running the

business after you are gone?

What are the Problems we see with These Potential Heirs?

• Not financially responsible• Do not understand the family business• No clue as to the amount of work it took to

accumulate your wealth or the value of money

• Constantly spending beyond their needs• Potentially ruin the initiative of younger

generations

How to Avoid These Problems?You need to start planning!

“A good plan today is better than a perfect plan tomorrow.”

- George S. Patton

Techniques

Planning Techniques• Doing nothing (approximately 80% of Americans)• Joint Ownership with spouse• Giving away assets during lifetime• Beneficiary Transfers• Wills• Irrevocable Trusts• LLCs (Limited Liability Companies)• FLPs (Family Limited Partnerships)• Buy-Sell Agreements

Doing Nothing• Means dying “intestate” (legal jargon for

“without a Will”)• Each state has laws that dictate how an

intestate person’s property will be distributed• You have absolutely NO CONTROL• Property may go to people you don’t want and

in ways of which you do not approve• This technique is roughly described as “letting

the chips fall where they may”

Joint Ownership with Spouse• Planning may be necessary after the death of

the first spouse when still in a period of mourning

• No time for planning if both spouses die simultaneously

• Assets are subjected to creditors and predators of both spouses

• There is NO remarriage protection:• Your assets may end up with people you never knew

The Next Husband

Giving Away Assets• You lose control• May cause huge problems if Medicaid

assistance is needed within 5 years after the gift is made

• You may lose significant tax benefits (although, if properly done, you may gain some significant tax benefits)

What is a Will?• A formal document that allows you to direct the transfer

of property you own at your death

A Properly Drafted Will Allows You To:• Set aside to provide for your surviving spouse for

her lifetime• Choose who receives those assets after the

surviving spouse’s death• Select which children ultimately receive which

assets and in what amounts (i.e., farm vs. insurance)

• Avoids or minimizes family confusion and disagreements

• Minimizes or eliminates estate taxes

What is a Trust?• A Trust is a legal relationship – a special kind

of contact designed to control property management and distribution

• A Trust has three separate roles:• Grantor (also referred to as Trustor, Settlor, or

Creator) who created and funds the Trust• Trustee who holds the property and administers the

Trust• Beneficiary who receives benefit from the Trust

What is a Trust?• A Trust is a contract between two parties for

the benefit of a third party

Grantor

Beneficiary

Trustee

Wills and Trusts Enable Sophisticated Estate Planning

• Creditor/Predator Protection• Remarriage Protection• Estate Tax Minimization• Additional care for children (or spouses)

with special needs that are disqualified for government benefits

Limited Liability Companies• LLCs are highly flexible and customizable tools

that hold many benefits for small business owners (including farmers and ranchers)

• LLCs can be thought of as a hybrid between a partnership and a corporation

• LLC Operating Agreements can restrict ownership in the company only to lineal descendants or trusts where the ultimate beneficiaries are lineal descendants

Family Limited Partnerships• FLPs are also highly flexible and

customizable tools that hold benefits for small business owners like farmers and ranchers (similar to LLCs)

Present Benefits of LLCs and FLPs• Allows control to be maintained by the

organizers, as opposed to gifting undivided interests

• Limits personal liability

Lower Estate Taxes• Non-controlling and marketability

adjustments can reduce the fair market value of ownership interests

• Gifting of ownership interests• The annual exclusion is currently $14,000 for an

individual (or $28,000 for a married couple)• Annual gifting of LLC interests in these amounts can

greatly reduce the size of your estate

Equalizing Gifts Among Heirs• One way to equalize the inheritance received by

children who are active in the operation of the farm or ranch with those who are not is to create two classes of ownership

• Another way to equalize inheritance is to prepare a Buy-Sell Agreement requiring active children to “buy out” the passive children

• FLPs and LLCs can also utilize Buy-Sell Agreements and other provisions that restrict the transfer of interests in these entities (e.g., only your descendants)

Other Vehicles for Succession and Estate Planning

• Grantor Retained Annuity Trusts (GRATs)• Self-Cancelling Installment Note (SCINs)• Annual Gifting using Annual Exclusion• Use of lifetime exemption to move

appreciated property to the next generation• Dynasty Trust or Generation-Skipping Trust• Irrevocable Life Insurance Trust

Conclusion

• There is no better time than the present

WARNING!

The United States Department of Agriculture has several restrictions and limitations when using LLCs and FLPs to hold farm property, so

be sure to check with your agriculture attorney to see how using an LLC or FLP will affect your

farm plan before using either for estate planning purposes

QuestionsDr. Kent Wolfe

DirectorCenter for Agribusiness & Economic DevelopmentThe University of Georgia College of Agricultural

and Environmental Sciences

Comments from Event Sponsors

Mr. Jeff Nunnery9th District Field Representative

Georgia Farm Bureau

Comments from Event Sponsors

Mr. Jack SpruillMarketing Director

Georgia Department of Agriculture

Closing Remarks

Dr. Kent WolfeDirector

Center for Agribusiness & Economic DevelopmentThe University of Georgia College of Agricultural

and Environmental Sciences

Thank you for

Attending!