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by Garnet Perman
Sep 2024
American agriculture is in the beginning of one of the largest transfers of land and wealth in the nation’s history. Transition, succession and estate planning are hot topics. Only 30% of family farms/ranches survive to the second generation. Twelve percent make it to the third and only 3% survive to the fourth generation. In keeping with the Grassland Coalition’s tradition of peer to peer learning, this is the first in a series of articles about producers and the steps they’ve taken to bring in the next generation and plan for the future.
Gift of heifers
Jim and Karen Kopriva, and their son Lee are owners and operators of Kopriva Angus, a registered Angus operation located near Raymond, SD. Their daughter Angela and her family live in Brookings, but she continues to be involved in the operation on a limited basis.
Jim and Karen helped both children start in the cattle business by gifting each of them two heifers about the time they started grade school. Those cows helped pay for their education and helped Lee transition into full time production agriculture when he finished college.
Adding Value
Lee always knew he wanted to raise cattle. He graduated from SDSU in 2009 with a degree in animal science and minors in ag business and range. He spent all his summers and many weekends helping Jim with the farm. When he returned full time, one dilemma he faced was how to add value to the operation. Good long term relationships with neighbors and friends that had a compatible land ethic were key to him being able to add acres to the operation by renting and eventually purchasing some land. His part of the operation is 20% deeded acres and 80% rented or leased. Lee has been able to negotiate rental and lease contracts for five years. He feels longer leases allow him to be more intentional about caring for the land by putting time into projects like weed control and water development. He makes a point of communicating with his landlords on a regular basis.
Jim described his and Lee’s arrangement as “operating separately together”. They start most days with a planning session, work together and share equipment, but keep separate books for each person. Their herds are pastured together. They hire some help, especially with haying. Karen maintains the financial records and Lee deals with the registered herd records. Angela still owns a few cows and helps with big projects like the yearly sale and smaller activities some weekends. The principles of soil health inform day to day decisions as well as big picture planning. Practices include native grass seeding, rotational grazing, and the use of cover crops and crop residue stubble to extend the grazing season. Kopriva Angus received the SD Leopold Award for Conservation in 2012.
Succession & Estate Planning
Prior to farming and ranching full time, Jim worked for the Farm and Home Administration during the 1980’s. That experience has been an asset in many ways including understanding the importance of formally planning for the future. He’s seen several situations that ended in a family train wreck for lack of planning. About five years ago, he and Karen started their own process for succession and estate planning. They found help through the SD AG Rural Leadership (SDARL) directory.
Alan Hojer is an SDARL alumni and works as a legacy consultant for First Dakota National Bank. He met first with Jim and Karen and later with the entire family. He helped them identify goals, examine options and connected them with people that could help put their plan in place. It took about a year to finalize a plan that works for their family. It can be tweaked if necessary
“If I’m gone tomorrow I know what happens and so does everyone else,” Jim said. “Our quality of life is better because of it.” For Lee, who is the 5th generation to operate on some of the land, knowing the long-term plan gives him peace of mind and inspires him to put more effort and pride into his daily activities.
Garnet Perman is a freelance writer and ranches with her husband, Lyle, near Lowry, SD.
Source: SDGC Newsletter