BRANDON — Rising farmland values and wildly fluctuating commodity prices are making it risky for the next generation to take over the family farm, said Peter Manness, a farm business consultant with Meyers Norris Penny.
Speaking to a crowd of about 50 at Manitoba Ag Days in Brandon yesterday, Manness said high land prices make farm successions expensive, and with variable crop prices making farm income less predictable, farm transition plans are more important than ever.
A sound farm transition plan will allow owners to control the process, involve all family members and provide the farm with a strategic plan for the future. It should also allow the owners to manage the transfer in a tax efficient way.
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Manness said farmers know it’s time to develop a plan for handing over the farm to the next generation by watching for these signs:
* When kids have been working on the farm for two years or more. Manness said this shows the kids are interested in farming and there is a good chance they will soon be looking for more responsibility
* When the owner wants to begin to transfer some management responsibilities
* When new family members enter the picture, through marriage or grandchildren
* When kids invest off-farm income into the farm
* When the farm owner is thinking about transferring ownership in the next five years.
