As market farmers mature, many find themselves ready to slow down or to change their focus. But they are loathe to abandon the business they have built up, the relationships with customers, the farm system, the improved soil. And what if they don’t want to move away from the farm?

Here at Growing for Market, we are always looking for ways to get more people involved in market farming. So we were impressed when we heard about this model, which gives a new farmer a start while allowing some veteran farmers to keep their farm home and see their business continue.

Life estate
Bob and Bonnie Gregson have been market gardening on Vashon Island, Washington, for 12 years. Their book, Rebirth of the Small Family Farm, describes how they came to farming in their 40s, made lots of mistakes, and eventually figured out how to make a living on 2 acres with no hired help. (It’s available from GFM for $9 plus $2 postage. Call 800-307-8949.) In the past few years, the Gregsons’ interests have turned more toward small-farm education, research and advocacy. But they didn’t want to let their successful small farm business disappear.

The Gregsons set the groundwork for a transition by building a second house on the back of their property. They moved into the new house, and rented their former house to apprentices. One of their apprentices wanted to start his own farm, so they began working with him to take over their business. They created an arrangement that is based on the standard legal agreement known as a life estate.

The life estate allows the Gregsons to sell their farm but remain on it for the rest of their lives. Their apprentice is buying the farm at about half its appraised value, and the Gregsons are financing it themselves, so they get the monthly mortgage payment. The new farmer acquires the right to all the customers, equipment, land and buildings. But the Gregsons will still live there, and have some land where they can do their own research, hold classes and the like.
“We get to sell the farm and keep it at the same time,” Bob said. “We get the equity, but we don’t have to leave. We have 30 years of income ahead.”

The benefit for the new farmer is that he gets the farm at an affordable price and he has the Gregsons nearby to offer advice and answer questions.

Bob said it was hard to find an attorney who would draw up the life estate for them. Usually, life estates are used when the farmer is quite old and has a short life expectancy. In those cases, the house is of minor importance. But the Gregsons will be there for many years, so building a second house on the farm was important. Equally important was finding a buyer with whom they have a good relationship, since they are expecting to be close neighbors for a long time.