University of Maryland Extension

sweat equity

Valuing On-Farm Heir’s Sweat Equity Is Complicated: Agreements Can Fairly Compensate On-Farm Heirs

Image of tractor working at sunrise.  Image by Edwin Remsberg
Determining the value of sweat equity can be both challenging and controversial for farm families. Sweat equity arises as an issue when an on-farm heir receives payment at below market rate, and the farm business grows in size due to an on-farm heir’s below-market labors. Land in the farm may also...
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