WINNIPEG – Seriously ill in a hospital bed, surrounded by family and
clergy and slipping in and out of consciousness, Henry Hays remained
lucid long enough to tell his family to continue with the farm
succession plan.
Hays recovered from that health scare in 2000 and has continued to move
toward retirement and the eventual takeover of the ranch at Hardisty,
Alta., by his son and daughter-in-law.
“You can’t hand over the reins and tell him to thread the needle at the
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finish line,” he said, alluding to a chuckwagon race analogy repeated
often throughout a national conference on family farm succession held
in Winnipeg this month.
The goal should be to pass on the farm one rein at a time to the next
generation, he said.
“When you’re in a panic situation and death is inevitable, you can’t
make a sudden decision.”
Succession planning has been rewarding for Hays and his wife, Maureen,
who have garnered pride in watching the ranch move along to the fourth
generation.
“Our parents made it work for us and now it’s our turn to make it work
for the kids,” he said.
When death comes, Hays wants the peace of mind to say, “everything is
looked after and good luck.”
He detailed the steps the family took, from establishing goals and
objectives, to forming a partnership, to purchasing life insurance.
He said families have trouble with farm transfers for various reasons,
including the cost of succession planning, a fear of letting go and
apathy.
It is also a more complicated process than when his parents started to
pass the operation to him in the 1960s.
The ranch, homesteaded by Hays’ grandparents in 1908, has grown to a
200 cow-calf operation, a small feedlot, 32 quarters of land and three
homes.
He said families cannot make the plan alone and need trusted
professional advisers to ensure all family members are considered.
Carole Spooner, director of succession services with Meyers Norris
Penny, agreed succession plans are not simple, but they are achievable.
If families set the plan and priorities, get good advice from a team of
professional advisers sensitive to family issues and dynamics, she said
it can be positive and rewarding.
Different services might be required at various stages of the
transition, such as accountants to discuss taxation issues and lawyers
to prepare land title transfers, but one individual needs to
co-ordinate the team.
Formalized regular family meetings are key to effective communication.
Among important issues are the equitable treatment of nonfarming
children and whether the farm is financially viable.
Spooner said succession planning is not always kept within the family.
“If the only strategy that makes sense is an exit strategy, it’s always
one of the options to be looked at.”
