Have you been identified as the next owner and/or manager of all or part of your family farm?
If not, do you expect to be? Do you have any idea at all?
There is a broad spectrum of answers to these questions, depending on the farm family and situation.
However, you need to ask yourself if you’re ready. And the answer must be based on more than a high degree of “confidence that you can do it.” Confidence will help, but it alone will not carry the day.
Read Also
Agriculture needs to prepare for government spending cuts
As government makes necessary cuts to spending, what can be reduced or restructured in the budgets for agriculture?
The farm that you will manage and own some day, on your own or with siblings and in-laws, is not the same farm that your parents started with. Most are larger and significantly more complex.
As well, most are growing, either in size or diversity, because multiple enterprises or business units are often involved.
Detailed organizational structures are common, whether they be corporations, holding companies, operating companies, trusts, joint ventures or partnerships. All add to the increasing degree of complexity associated with today’s farms.
There are things you should do to get ready for the role you will assume when the transition of ownership begins.
Your observations and notes about these topics must absolutely be written down.
Writing something down makes it genuine and adds credence to the statement or fact. You are more accountable to something written than to something spoken. Another benefit is that the written statement can be reviewed and used as an indicator of development and achievement.
- Past and future: Compare and contrast the farm as it is today with what it was like 10 years ago. Now look forward. What will it look like 10 years into the future? Working through this exercise will help create context for change that has occurred and change that will accompany the transition.
- Set Goals: The process of setting goals helps you choose where you want to go in life. Knowing precisely what you want to achieve shows where you have to concentrate your efforts. Goals can be for yourself, family and the farm business. Goals can have different timelines for achievement — current (one year), short term (five years) and longer term (10 years). The goals should be specific, realistic and measurable.
Make sure to focus on the personal goals. Unfortunately, there are family situations where one or more of the children want to farm but are not given the opportunity.
Sometimes the retiring generation refuses or is unable to give any indication of what they want for the future. In these situations, it’s even more important that you know what you personally want to accomplish in life.
For each goal, write down why you chose it and what the outcome will be when you achieve it. Review and adjust your goals every year. Are you making progress? Have circumstances changed?
- Management development: Invest in getting post-secondary education, whether it’s a degree, diploma or trade, but here’s the really important part — be prepared to continue to advance your management skills after you complete the program.
Think about it. You move right from high school into your post-secondary program. You’re finished in your early 20s and you’re tired of school. You just want to farm. Fair enough. But if you farm until you turn 65, that’s more than 40 years. The rate of change will de-mand up-grading your management ability.
Your management development program should be aligned with the transition plan. Are you developing the skill set that is required to own and manage the farm?
Make sure to write down your management development plan.
As the next generation, you may not be the ultimate decision maker and lack full control of the situation.
However, it’s important to be as ready as you can be. This will put you in the best situation possible, no matter what the future holds.
Terry Betker is a farm management consultant based in Winnipeg, Manitoba. He can be reached at 204.782.8200 or terry.betker@backswath.com.
