From Attorney Tim Bupp, chair of the CGA Law Firm Estate Law practice group.

A good estate plan for a farm family needs to recognize and take advantage of the various tools available for protecting the farm operation and aiding farm family succession.  Our Commonwealth has recognized the importance of farming to our communities, and has created a number of beneficial programs that can aid family farmers to continue the farming operation into the next generation.  This article describes only a few of those beneficial programs. 

1.        Clean and Green.  Pennsylvania’s “Clean and Green” program is a wonderful benefit for farm families.  When enrolled in Clean and Green, a farm is taxed for local real estate tax purposes at its agricultural use value, and not at its highest and best value, as is common.  This can result in a significant decrease in the annual county, local, and school tax burden for farmers, which benefits the farm family in recognition of the importance of farming in the local community, and the relatively low impact the ag ground has on local infrastructure and the school system.  Clean and Green’s application process is not burdensome; and its tax benefits are far-reaching.  If all or a portion of the farm is removed from the program, the owner has the requirement of repaying seven years of the tax benefit to the local governing entities.  Clean and Green enrollment also provides significant lessening of inheritance tax owed when the farm is passed to the next generation by reason of death.  Enrollment in Clean and Green is certainly an important benefit of which all farmer families should be aware.  

2.        Agricultural Security Area (ASA).  Enrollment in the local ASA is also an important consideration of farmers.  The ASA is often described as providing three significant benefits, without causing any detriment.   Enrollment in the ASA provides the protection of the Right to Farm Act.  Second, enrollment provides the landowner with protections from unwanted condemnation by governmental entities; those attempting to condemn farm ground must prove in a series of court hearing that the benefit of the farming activities is outweighed by the condemnation purpose (farmers can agree to sell the farm to the entity, but cannot easily be forced to do so.)  Finally, enrollment in the ASA is a requirement before the farm can be enrolled in Pennsylvania’s Agricultural Land Preservation Program.

3.        Agricultural Preservation.  Perhaps the best tool for farm families to consider is placement of an agricultural conservation easement on their property.  This process assures that the farm will remain in agricultural use in perpetuity, in exchange for a cash payment from the preserving body.  The result is that the family continues to have the farm and also has liquidity to meet their estate planning goals; the proceeds from which can be used to secure a retirement for the landowners, or create a succession plan that treats children equitably.   Programs like the York County Ag Land Preserve Board and the Farm and Natural Lands Trust of York County work with landowners to fulfil their preservation goals and provide wonderful benefit to farmers in particular and our community in general.  Preservation can be a cornerstone for your farm succession plan.   

Tim Bupp has practiced for twenty-five years with CGA Law Firm in estate planning, estate administration, and elder law. Tim is an Accredited Estate Planner (AEP) by the American Association of Estate Planning Councils and a Certified Elder Law Attorney (CELA) by the National Association of Elder Law Attorneys. He is certified in Estate Planning and Pension Law Planning by the Temple University Beasley School of Law, from which he also holds a Master of Laws degree in Tax Law. He also holds a JD from the Pennsylvania State University Dickinson School of Law, an MBA from York College of Pennsylvania, and a Bachelor of Science degree from Penn State. Tim has chaired the Estate Law Section of CGA Law Firm for ten years, where he is a shareholder.  Reach Tim at tbupp@cgalaw.com or 717.848.4900. 

Timothy Bupp

Estate Law Chair, Shareholder

Timothy J. Bupp is a Shareholder with CGA Law Firm and chairs the Firm’s Estate Law Section. He provides clients with specialized advice in Estate Planning, Business and tax planning, Real Estate transactions and related matters. Tim assists his clients by utilizing the knowledge he gained from his advanced degrees in business administration, business taxation, and law, as well as his certifications in estate planning and employee benefits taxation.

Read Tim’s Bio Page in full HERE.