Category: Succession Planning

No.  But there are certain things to keep in mind. Many farms inquire if there is an easy how-to book or checklist that will guarantee a successful family farm transition? No. Well, how about an easy way you can sit down in an afternoon and complete your transition plan? No. The fact is the odds are against any family farm successfully transitioning to the next generation. So, successfully transitioning a family farm is something to be proud of! Every farm is different, and every family is unique. Every family farm has a unique history, culture, family dynamic, and business. Every...

Starting a transition plan isn't easy. It's not only hard to know where to begin, but how do you even begin the conversation? The stakes are high, and many farms don't make a successful farm transition for many reasons. Procrastinating the initial transition conversation is one of them. The younger generation doesn't want to start the conversation because they may appear greedy or ungrateful. The older generation sometimes believes the younger generation needs to "step up" and start the conversation. Unspoken stalemates are often the result. A 4 Step Plan Don't wing it!  All too often, this first conversation is...

John was ready to start his succession plan. He was 63 and wanted to get the process done quickly. He had a plan. During our first meeting, we discussed history, core values, and culture. John's response? What does this have to do with transferring the farm to my sons? Most family businesses do not successfully transition to the next generation.  It is an unfortunate fact, and family farms are no exception. Why don't they make it all the way? There is often unmanaged conflict based on incompatible values and a fuzzy vision of where the farm is headed. As we...

Lack of a shared vision may be one of the most significant threats to sustaining a family business through multiple generations. Roughly 83% of family farms do NOT make it to the third generation.  Developing your own family's vision will greatly increase the odds in your favor. Your family farm is not the same as it was when you started it. It has evolved over time due to financials, demand, land availability, technology, and hard work.  You have and will continue to feed the world in a highly competitive environment.  When farming was financially sustainable many farms wanted to continue...

And the Failure when there is none. Bob, a dairy farmer college of mine, operated a successful 600 cow dairy.  Like most of us, he thought he had a lot more time left in this world.  Unfortunately, Bob was diagnosed with cancer on a Monday and died just two weeks later.  The biggest business obstacle to his wife and daughter was the absence of the paperwork that allowed his business to continue. As leaders of successful dairy operations, you understand the importance of developing and using documents.  My guess is your farm office is full of manure maps, dairy comp...

When times are tough, and everyone is under stress all the imperfections bubble to the surface. The imperfections were there all along but aren’t visible until our backs are against the wall. This is especially true of transition planning. My latest Farm Futures article covers some of the problem areas we often see at farms of all sizes and locations. Click here to download the full article: Deal with transition planning before it's too late Common Problems -Tying compensation to ownership -How the next generation builds equity -Providing for the senior generation income while not harming the farm -Conflict among...