Lots of farm families are trying to develop a succession plan for their farms, or think that they should be.
However, they typically find that it’s difficult to get started.
This is not unusual, but it can lead to future difficulties if the succession planning is deferred too long.
In the worst cases, deferral can result in the inability to successfully transfer the farm to the next generation.
Farmers are generally busy and even more so in the summer. As a result, it’s easy to procrastinate. There are lots of things to do that are more urgent, although not necessarily more important. Months, seasons and years tick by and without a catalyst to begin planning, nothing happens.
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Inevitably, something happens. It can simply be the son or daughter declaring that they are coming home to farm, or it can be more severe such as a health crisis.
In any event, it is greatly advantageous to begin planning. It’s never too early to start but it can be too late.
How can the succession process get started in the absence of a catalyst? A simple idea is to call a meeting.
The preferred approach is for the retiring generation to initiate the planning and call the meeting. However, the next generation can take the lead if the retiring generation is procrastinating.
There is no guarantee that the parents will agree to participate, but it’s fair ball for the next generation to attempt to start the process.
No matter who initiates the process and invites family to a meeting, an agenda should be developed and circulated before the meeting. This will give participants an opportunity to think about the issues and not be surprised when they attend, which in turn will help make the meeting more productive and avoid conflict.
Someone should take notes: simple and point form will do. They can be circulated to those who attend as well as to those who didn’t, either because they couldn’t or chose not to. Documenting discussion is important. The discussion, captured in the notes, becomes the story.
Notes keep the process moving and can also help prevent going over the same issues again and again.
Technology has reduced the distance between family members. Meetings can now be set up on Skype at virtually no cost.
Sometimes a family member may decide that they don’t want to participate in succession planning. This is unfortunate and can be difficult.
Invite them anyway, and keep inviting them. Send copies of the meeting notes. They may never participate, but it can never be said that they didn’t have an opportunity.
Developing a succession plan is not easy stuff.
For most farmers on a spring morning, the choice between working on a succession plan or getting into a tractor cab is no choice at all. Sunshine and fresh air win hands down.
But a proactive approach to succession planning will result in the best possible outcomes for all parties involved.
Terry Betker is a farm management consultant based in Winnipeg, Manitoba. He can be reached at 204.782.8200 or terry. betker@backswath.com.
