One of the core memories of my childhood is reading the “Popeye the Sailor Man” comic strip in the daily paper and watching the cartoon on Saturday mornings. Many of us remember Popeye, Olive Oyl, Bluto and little Swee’Pea. But it was another character, J. Wellington Wimpy, who left an indelible impression on me.
Wimpy was known for his love of hamburgers and his famous line, “I’ll gladly pay you Tuesday for a hamburger today.” Of course, Tuesday never actually came, and Wimpy rarely paid his tab.
I think of Wimpy often in my work with Ohio State University Extension, especially when farm families discuss sweat equity. Too often, the successor generation is told, “We can’t pay you what you’re worth, but we’ll make it up to you later.” Unfortunately, later in these situations can be just as elusive as Wimpy’s Tuesday.
Sweat equity arises when a child earns less on the farm than they could earn elsewhere. If there’s no clear plan in place, well‑meant promises to “square things up later” often slip through the cracks.
As a rule, avoid promising to make it up later. As time passes, memories fade about how much sweat equity was given or how it should be valued. Sometimes, one parent mentally tracks the underpayment and plans to fix it in their estate plan, only to pass away before doing so. The surviving spouse may have no record of the promise, eliminating any chance of honoring that Tuesday repayment. This can lead to frustration, resentment and conflict within the family.
So, what can you do if you truly cannot pay the next generation what they are worth? If this is the case, track it and work with your attorney to include clear, written provisions for sweat equity in your transition plan. Documentation, not verbal promises, can help keep things fair.
Consider this example: Johnny Holstein could earn $65,000 a year working as an assistant herdsman for a neighboring 1,000-cow dairy. His parents’ 55-cow tie‑stall operation can only afford to pay him $50,000, even though he has the major responsibility for milking, breeding, maintenance and herd records.
If benefits are equal, his opportunity cost is $15,000 per year. Over 15 years, that totals $225,000. If the parents wish to treat their heirs equally, the first $225,000 of the estate could be distributed to Johnny before the remainder is divided among all siblings. This isn’t a bonus, favoritism or extra inheritance. It is a compensation correction.
A key component of this conversation is first knowing what the true compensation is for each member of the farm family. Compensation is more than wages. It can include health insurance, housing, meals, in-kind or paid childcare, vehicle and fuel, utilities and/or free meat or other farm products. Creating an annual compensation summary for each family member helps ensure transparency and reduces misunderstandings.
Sweat equity can also arise when the farm grows substantially, due in part to the efforts of the child who comes back to work in the operation. Families should discuss how much of that growth, whether in equipment, land, livestock or overall net worth, should be attributed to the heir’s hard work.
And don’t overlook the non-business contributions of each heir. These may include transporting parents to medical appointments, managing household needs or offering in-home care. These tasks have economic and emotional value and should be part of sweat equity conversations.
Sweat equity is one of the most misunderstood and most emotionally charged issues in farm transition planning. Today’s article is only a quick look at this issue. Valuing unpaid labor, tracking contributions, documenting promises, balancing fairness among siblings and aligning sweat equity with estate and business structures are all deeper layers that require thoughtful discussion.
If your family is wrestling with questions about sweat equity or transitioning the farm, I encourage you to attend one of OSU Extension’s “Planning for the Future of Your Farm” workshops. Learn more at farmoffice.osu.edu.
These conversations shouldn’t wait for “someday,” and they certainly should not depend on a Wimpy‑style promise to pay on a future Tuesday!
