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# Farm succession becomes more complex amid aging demographics and high entry costs

Publication Date: 16.06.2025, 12:00

The generational transition in U.S. agriculture is increasingly strained by economic and demographic pressures.

As the average age of American farmers continues to rise, industry experts warn that the transition of farmland to younger generations is becoming more difficult due to both demographic and financial barriers.

Chad Hart, an agricultural economist with Iowa State University Extension, said modern farming conditions are allowing older farmers to remain in the field longer while making it harder for new entrants to gain a foothold.

“The average age of farmers is getting older,” Hart noted. “Part of that is because of the technology that we have in agriculture today, making it where more seasoned farmers can continue to farm deeper into their lives and careers.” He added, “We’re also seeing a challenge of bringing those young and beginning farmers back on the farm, so that’s leading to an increasing age there.”

High capital requirements are a major factor discouraging young people from taking over family farms, particularly in row crop production.

“To get started, especially in row crop farming these days, takes a tremendous amount of capital,” Hart said. “That is hard for young farmers to gather early in their career, and so you tend to see a slower transition these days as opposed to generations past.”

Despite the mounting challenges, farm succession is not a new issue. Hart referenced historical concerns about generational turnover in agriculture dating back to the 1940s. “I stumbled upon one of [Professor Bill Murray’s] first papers, and it was talking about the farm succession problem that they were staring at back in the 1940s,” he said.

While U.S. agriculture has managed to pass farmland between generations for decades, Hart emphasized that the conditions for doing so are becoming more complex. “It’s becoming harder to do because farms are larger, they’re much more capitalized, and you have fewer folks participating in farming than we had back then.”

Experts say successful farm transitions require significant planning and long-term vision—something increasingly essential as the sector contends with both demographic shifts and financial headwinds.

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