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	The Western ProducerLatest in transition | The Western Producer	</title>
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	<title>Latest in transition | The Western Producer</title>
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		<title>The emotional stakes of a farm family legacy</title>

		<link>
		https://www.producer.com/farm-family/the-emotional-stakes-of-a-farm-family-legacy/		 </link>
		<pubDate>Sat, 14 Feb 2026 13:30:00 +0000</pubDate>
				<dc:creator><![CDATA[Jeanine Moyer]]></dc:creator>
						<category><![CDATA[Farm & Family]]></category>
		<category><![CDATA[farmliving]]></category>
		<category><![CDATA[Management]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[farm business]]></category>
		<category><![CDATA[farm life]]></category>
		<category><![CDATA[succession]]></category>
		<category><![CDATA[succession planning]]></category>
		<category><![CDATA[transition]]></category>
		<category><![CDATA[transition planning]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=314646</guid>
				<description><![CDATA[The underlying pressure of keeping a family farm legacy alive can spark a variety of emotions among siblings, potentially causing conflict that will affect the business. ]]></description>
								<content:encoded><![CDATA[
<p><em>Glacier FarmMedia</em> &#8211; Two generations are currently working together on the Smith family farm.*</p>



<p>An intense pride in generational legacy has been passed down through the farm’s long history. Everyone shares the same love and appreciation for the family farm.</p>



<p><strong>Other stories in this series:</strong></p>



<ul class="wp-block-list">
<li><a href="https://www.country-guide.ca/guide-business/sibling-issues-in-farm-succession/" target="_blank" rel="noreferrer noopener">Sibling issues in farm succession</a></li>



<li><a href="https://www.country-guide.ca/guide-business/tips-for-how-to-be-fair-to-all-siblings-during-farm-succession/" target="_blank" rel="noreferrer noopener">Tips for how to be fair to all siblings during farm succession</a></li>



<li><a href="https://www.country-guide.ca/guide-business/the-big-squeeze-how-to-be-fair-to-siblings-during-farm-succession/" target="_blank" rel="noreferrer noopener">The big squeeze: How to be fair to siblings during farm succession</a></li>



<li><a href="https://www.country-guide.ca/general/part-4-financial-disagreements-between-farm-siblings/" target="_blank" rel="noreferrer noopener">Financial disagreements</a></li>



<li><a href="https://www.country-guide.ca/guide-business/sibling-issues-in-farm-succession/" target="_blank" rel="noreferrer noopener">Generational differences</a></li>
</ul>



<p>Succession planning has slowly progressed for the family, and the siblings find themselves at a crossroads about what direction they should take the farm. The youngest, Jenn, doesn’t want to commit to farming yet. Sabrina wants to pursue an off-farm job and the two eldest, Rick and Macy, want to take over the farm but need to find a way to make it financially feasible to sustain multiple family members.</p>



<p>On top of the challenges of succession planning, there’s an underlying current of pressure to keep the farm operational for the next generation.</p>



<p>Darrell Wade, founder of <a href="https://www.farmlifefinancial.ca/" target="_blank" rel="noreferrer noopener">Farm Life Financial Planning Group</a> and a farm succession specialist, says that for many families the farm can represent a shared family legacy that can inadvertently tie the family, and especially the next generation of siblings’ identities, to the land.</p>



<p>“Such emotional weight can intensify conflicts, where disagreements about the farm’s direction can feel like personal betrayals or challenges to family heritage,” he says.</p>



<p>Wade suggests that these four siblings should first recognize the emotional and cultural value of each other’s connection to the farm.</p>



<p>“Each may have different feelings or loyalty to the farm and, whether or not they are involved in the day-to-day operations, they may still be invested in the farm’s future,” says Wade. “I recommend including non-farming siblings in legacy decisions, such as preserving family traditions or land use.”</p>



<p>He says that roles for non-farming siblings can also be created to maintain their stake in the family legacy, for example, managing community outreach or maintaining historical records.</p>



<p>“I’m a firm believer that everyone should be involved in the succession plan, no matter if they are active in the farm business or not,” Wade says. “In this case, planning meetings should make space for discussions about how to maintain the farm legacy without assigning roles or responsibilities to select siblings. Conversations should be open and honest and without pressure from others.”</p>



<p>Wade also recommends designating time or space for non-work or non-farming interactions to maintain positive sibling relationships outside of farm duties, farm management or succession planning discussions. “These can be as simple as family dinners or attending community events.”</p>



<p><em>* This family and case study are fictional.</em></p>
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				<post-id xmlns="com-wordpress:feed-additions:1">314646</post-id>	</item>
		<item>
		<title>Consider thinking strategically when renting or selling land</title>

		<link>
		https://www.producer.com/opinion/consider-thinking-strategically-when-renting-or-selling-land/		 </link>
		<pubDate>Mon, 15 Dec 2025 21:58:43 +0000</pubDate>
				<dc:creator><![CDATA[Kevin Hursh, PAg]]></dc:creator>
						<category><![CDATA[Opinion]]></category>
		<category><![CDATA[Hursh on Ag]]></category>
		<category><![CDATA[Kevin Hursh]]></category>
		<category><![CDATA[succession]]></category>
		<category><![CDATA[transition]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=311920</guid>
				<description><![CDATA[While it makes economic sense to rent or sell the land for as much as possible, thereby maximizing the return, it&#8217;s wonderful to see instances where retiring farmers are more strategic. ]]></description>
								<content:encoded><![CDATA[
<p>Every year, a percentage of farmers decide it’s time to retire, and for many, the farm will not be transitioned to the next generation. Perhaps there are no kids who want to farm. Perhaps the kids have successful careers far away. Perhaps they have spouses who don’t want rural living.</p>



<p>Sometimes the land will be rented out with the retiring farmer happy to live off the rental income. In other instances, the land and equipment will be sold.</p>



<p>It’s often an excruciating decision, forced by age and/or health. In other cases, a farmer may just be tired of the ever-increasing costs and financial risks.</p>



<p>Farm real estate companies and many auction firms make their living from the sale of land and equipment. Accountants are needed to help with tax planning. Lawyers may need to be involved. Farm transition is big business.</p>



<p>While it makes economic sense to rent or sell the land for as much as possible, thereby maximizing the return, it’s wonderful to see instances where retiring farmers are more strategic.</p>



<p>Usually, there are young farmers in the area struggling to expand.</p>



<p>They can’t get the financing to buy a large tract of land, but they might be able to buy a quarter or two, particularly if it’s close to other land they farm.</p>



<p>Similarly, they wouldn’t be able to gear up to rent all the acres, but they’d be happy to rent some of it.</p>



<p>All too often, the land of a retiring farmer is sold as a block to attract large players rather than selling it off in smaller chunks, which would give smaller farmers and younger farmers a chance.</p>



<p>And all too often, the land is offered to one of the largest farmers in the region, one that has rapidly expanded.</p>



<p>Sometimes you’ll see retiring farmers, who for years complained about mega farms, sell out or rent to a mega farm when it’s time for them to exit.</p>



<p>It’s easier to sell all the land to one big buyer. It may also be easier to deal with one renter rather than several. However, your rural community will be stronger if you help keep local small to medium-sized operations viable.</p>



<p>No doubt it’s important for some retiring farmers to maximize returns to ensure a comfortable retirement.</p>



<p>In other instances, the potential difference between, say $7.0 and $7.25 million in return, is not of a large consequence.</p>



<p>Hopefully, the knowledge that you’ve helped some small or medium-sized neighbour is worth more than the absolute top dollar.</p>



<p>Jeff Yorga, president of the <a href="https://skstockgrowers.com/" target="_blank" rel="noreferrer noopener">Saskatchewan Stock Growers Association</a>, made an interesting observation on this topic in the latest edition of the association’s <em>Beef Business</em> magazine.</p>



<p>Yorga points out that retiring cattle producers often have limited flexibility to accept less than top price. Until the last couple years, returns for cow-calf producers haven’t allowed the equity accumulation that has occurred on typical grain farms.</p>



<p>Another aspect to this issue was recently advanced by Derryn Shrosbree, founder of an Ontario farm transition firm called <a href="https://www.33seven.ca/" target="_blank" rel="noreferrer noopener">33seven</a>.</p>



<p>While a farm can be transferred to sons and daughters on a tax-deferred basis, that’s not the case with transfers to nieces and nephews. Shrosbree argues changing the tax laws would help preserve family farms.</p>



<p>The idea makes a great deal of sense. Politicians and policy makers often give lip service to family farms. This is a relatively small tax change that could make a significant difference.</p>
]]></content:encoded>
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				<post-id xmlns="com-wordpress:feed-additions:1">311920</post-id>	</item>
		<item>
		<title>Variety of options available to manage separation, divorce</title>

		<link>
		https://www.producer.com/farm-family/variety-of-options-available-to-manage-separation-divorce/		 </link>
		<pubDate>Wed, 11 Jun 2025 21:59:38 +0000</pubDate>
				<dc:creator><![CDATA[Kimberly Visram]]></dc:creator>
						<category><![CDATA[Farm & Family]]></category>
		<category><![CDATA[divorce]]></category>
		<category><![CDATA[mental health]]></category>
		<category><![CDATA[separation]]></category>
		<category><![CDATA[succession]]></category>
		<category><![CDATA[Succession Planning column]]></category>
		<category><![CDATA[transition]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=302069</guid>
				<description><![CDATA[In Saskatchewan, there are a variety of process options that people may use to navigate separation and divorce. ]]></description>
								<content:encoded><![CDATA[
<p>Relationships can look very different these days.</p>



<p>And just as each relationship is unique, the appropriate legal process when a relationship breaks down can also look different, depending on the needs, goals and level of conflict that may exist between the separating spouses.</p>



<p>In Saskatchewan, there are a variety of process options that people may use to navigate separation and divorce.</p>



<p>When considering how to approach separation, it is important to consider what process may be best suited to your particular needs and goals.</p>



<p>The purpose of this article is to provide further details of those process options:</p>



<h2 class="wp-block-heading">‘Kitchen table agreements’</h2>



<p>This is an informal process where spouses sit down together and decide on the terms of their separation. Often lawyers are not involved.</p>



<p>This type of agreement is cost-effective because it allows spouses to reach a settlement themselves.</p>



<p>However, these agreements can present risk if they are not properly documented and/or if there is a lack of disclosure and/or the agreement is fundamentally flawed as it relates to the applicable laws.</p>



<p>This is a good first step if parties generally know how they want to address issues arising from their separation. Once terms are agreed to, you may then have them formally documented to minimize the above-noted risks.</p>



<h2 class="wp-block-heading">Negotiation</h2>



<p>When spouses retain lawyers, going to court is rarely the first step. Rather, legal counsel (or other advisers or trusted persons) can help spouses try to reach a mutually acceptable solution through negotiation.</p>



<p>Negotiation sometimes happens through written correspondence or may occur through four-way meetings, where each spouse and their counsel meet together.</p>



<p>If terms can be agreed upon, then they can be reduced into a formal agreement signed by both parties.</p>



<h2 class="wp-block-heading">Collaborative law</h2>



<p>This process typically has both spouses retain legal counsel who are collaboratively trained.</p>



<p>It may also involve other professionals, such as financial advisers, accountants and/or mental health professionals.</p>



<p>At the outset of the process, both parties and their legal representatives sign a participation contract that states that if either party exits the collaborative process in favour of a court process, their collaborative lawyer can no longer represent that party in court.</p>



<h2 class="wp-block-heading">Mediation</h2>



<p>In this process a neutral third party (the mediator) facilitates discussion and helps the parties work toward a mutual agreement outcome.</p>



<p>In each of the above-noted processes, the parties are the decision makers. This means that any outcome must be by agreement. Should agreement be unable to be reached, then the parties may need to use a different process whereby a third party will impose a decision.</p>



<p>Those processes may include:</p>



<h2 class="wp-block-heading">Arbitration</h2>



<p>This is an out-of-court process in which a binding decision can be made on the parties by the arbitrator on any issue on which the parties cannot agree.</p>



<p>Arbitration can be an attractive option for family law matters because it offers privacy and more control over the process. Arbitration can also be combined with a mediation process, whereby the parties first try to resolve their issues by agreement, and if they cannot do so, then the arbitrator will make a decision.</p>



<h2 class="wp-block-heading">Parenting co-ordination</h2>



<p>This is a child-focused process in which parents meet with a parenting co-ordinator for help with interpreting or understanding their court order, arbitration award or separation agreement on parenting matters.</p>



<p>A parenting co-ordinator does not make major decisions regarding decision-making or the parenting regime but can make decisions regarding more minor parenting access issues and other matters incidental to parenting.</p>



<h2 class="wp-block-heading">Binding pre-trial conference</h2>



<p>A pre-trial conference is the last court-facilitated process to settle the matter before trial dates are set.</p>



<p>Typically, a pre-trial judge acts as a mediator and has no decision-making power. However, in a binding pre-trial conference, the parties agree that the judge will have decision-making power should they be unable to reach an agreement.</p>



<h2 class="wp-block-heading">Court</h2>



<p>If all other process options fail or are not suitable for the parties, then matters can be addressed through the family court. In Saskatchewan, family court is part of the Court of King’s Bench.</p>



<p>As of July 1, 2022, those who come to family court are required to attempt a family dispute resolution process by the close of pleadings before they may continue with any further court proceedings.</p>



<p>Mediation, arbitration, collaborative law and parenting co-ordination all constitute recognized family dispute resolution, as long as it is provided by a recognized service provider.</p>



<p>People can apply to the court for an exemption if there has been interpersonal violence, a parent has abducted a child from the other parent or there is some other urgency.</p>



<p>If you are unsure what process option may be best for you or suitable for your situation, an initial consultation with legal counsel can help better understand your options.</p>



<p>It may also be that the most suitable process option changes throughout the process as needs, goals and co-operation between spouses change.</p>



<p><em>This article is provided for general informational purposes only and does not constitute legal or other professional advice. </em></p>
]]></content:encoded>
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				<post-id xmlns="com-wordpress:feed-additions:1">302069</post-id>	</item>
		<item>
		<title>Life&#8217;s transitions can be challenging but rewarding</title>

		<link>
		https://www.producer.com/news/lifes-transitions-can-be-challenging-but-rewarding/		 </link>
		<pubDate>Wed, 04 Jun 2025 20:50:00 +0000</pubDate>
				<dc:creator><![CDATA[Delaney Seiferling]]></dc:creator>
						<category><![CDATA[Farm & Family]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[change]]></category>
		<category><![CDATA[Lesley Kelly]]></category>
		<category><![CDATA[transition]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=301624</guid>
				<description><![CDATA[The agriculture industry is grappling with change, perhaps more than ever before, which is why it&#8217;s also more important than ever for farmers to understand how to successfully navigate transitions, both professional and personal. ]]></description>
								<content:encoded><![CDATA[
<p>The agriculture industry is grappling with change, perhaps more than ever before, which is why it’s also more important than ever for farmers to understand how to successfully navigate transitions, both professional and personal.</p>



<p>Lesley Kelly has seen a lot of change throughout her career and she’s grateful for that, despite the fact that some of it came unwillingly.</p>



<p>After leaving the family farm in Watrous, Sask., she got a university degree in marketing and went to work in the corporate world. At that point, farming wasn’t on her radar, she says.</p>



<p>But things changed when she and her husband were given the opportunity to become part of her family farm’s succession plan. Living in the big city with two young boys, the family saw the appeal of farm life.</p>



<p>However, in an early conversation with her dad about getting involved in the farm, he told her the business wasn’t in a financial position to support her as well as her husband and brother.</p>



<p>She remembers being disappointed at the time, but years later, when her dad was battling cancer and she was gearing up to take over his role on the farm, he brought up that conversation again.</p>



<p>“My dad said, ‘it wasn’t that there wasn’t a role for you. I wanted you to go out into the world and learn about yourself, and all your passions and what you love.’ And then he said, ‘I didn’t want you to feel like you had to fill my shoes.’ ”</p>



<p>Kelly realized that her father’s dream for her had come true.</p>



<p>In her time away from the farm, she had pursued many of her passions and interests: launching a snack food company using ingredients from the family farm, becoming a well-known social media influencer and advocate for the agriculture industry and helping launch the Do More Agriculture Foundation, a not-for-profit organization dedicated to promoting mental health in farming.</p>



<p>She also realized that because she didn’t follow a straight line to her role on the farm, she was afforded the opportunity to clearly define her career and life goals and to pursue them on her own terms.</p>



<p>Although she’s now farming full-time, she remains focused on her goals and active in several of her other ventures.</p>



<p>She’s also taken on a role as a board director with the Saskatchewan Wheat Development Commission.</p>



<p>“My outlook in life is to help make a positive impact,” she says.</p>



<p>“I want to help the industry, I want to help other farmers and I want to help my farm. That’s led me to do these things.”</p>



<h2 class="wp-block-heading">Unexpected journey</h2>



<p>Evan Shout also didn’t follow a straight line in his career and credits that approach with taking him places he never expected.</p>



<p>Over a decade ago, he made the decision to sell the family farm, in which he was a stakeholder.</p>



<p>“It was family versus the farm,” says the father of two boys.</p>



<p>“I always chose family over the farm.”</p>



<p>He went on to pursue his certified public accountant designation and a career in the finance field. After working for major accounting firm MNP for many years, he decided to transition again, taking on his current role as chief financial officer at Hebert Grain Ventures (HGV), a 22,000-acre grain and oilseed operation in southeastern Saskatchewan.</p>



<p>More recently, Shout, along with his HGV partner, launched a farm coaching and consulting business, a diversification strategy from the original business.</p>



<p>Shout has discovered that he enjoys this new job most of all.</p>



<p>No matter what type of transition farmers are planning, Shout says that to be successful there are a few things to keep in mind.</p>



<p>A good first step is simply taking the time to make a plan and think through all the implications and possible outcomes.</p>



<p>Specifically, create a business plan, identify strengths, weaknesses, opportunities and threats, and ensure your current operations are optimized in terms of financials, operations and strategic management networks.</p>



<p>“It’s all theoretical and things might change, but it’s more about making sure you have a really strong business case before you go forward.”</p>



<p>Advisers can help with this, and farmers should be mindful to rely on expertise as needed, he says.</p>



<p>“Farmers are really good at farming. It’s really high risk to go into an industry you don’t know anything about instead of just leaving your money in an industry you’re really good at.”</p>



<p>He also says that defining what success looks like to you is a critical early step because it’s not necessarily always about retirement, financial goals or business growth.</p>



<p>For a lot of farmers these days, he says the goal is actually just having more time, for example, to spend with their spouse or to watch their kids’ hockey games.</p>



<p>“You don’t realize how many farms are working three to four thousand hours a year. And honestly, their definition of success isn’t growth. It’s actually slowing down.”</p>



<p>For Kelly, her definition of success was honouring her curiosity and gaining new experiences.</p>



<p>She says those experiences were invaluable because they guided her career journey and strengthened her ability to achieve goals and serve others.</p>



<p>For example, she says if she hadn’t launched the snack food company, she wouldn’t have become interested in blogging and connecting consumers and farmers.</p>



<p>Her experiences as an influencer exposed her to farmers across the country, which got her thinking more deeply about mental health issues in agriculture.</p>



<p>Her advice to other farmers thinking of transitioning to a new role is to honour their curiosity and be open to new experiences because the experience alone might be the most valuable part of any new venture.</p>



<p>“You never know where it might lead. And there are other ways to define success.”</p>
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				<post-id xmlns="com-wordpress:feed-additions:1">301624</post-id>	</item>
		<item>
		<title>Delayed capital gains tax changes can affect producers</title>

		<link>
		https://www.producer.com/farm-family/delayed-capital-gains-tax-changes-can-affect-producers/		 </link>
		<pubDate>Fri, 04 Apr 2025 17:40:35 +0000</pubDate>
				<dc:creator><![CDATA[Colin Miller]]></dc:creator>
						<category><![CDATA[Farm & Family]]></category>
		<category><![CDATA[capital gains tax]]></category>
		<category><![CDATA[Colin Miller]]></category>
		<category><![CDATA[succession planning]]></category>
		<category><![CDATA[Taking Care of Business]]></category>
		<category><![CDATA[transition]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=298825</guid>
				<description><![CDATA[Whether you are preparing to sell your property, looking to retire or strategically planning when to sell your investments, the recent conversations about the capital gains inclusion rate will inevitably affect many of your decisions. ]]></description>
								<content:encoded><![CDATA[
<p>Whether you are preparing to sell your property, looking to retire or strategically planning when to sell your investments, the recent conversations about the capital gains inclusion rate will inevitably affect many of your decisions.</p>



<p>As such, now is the time to think about how this delay may be advantageous for you and positively affect your tax planning outcomes.</p>



<p>In simple terms, a capital gain occurs when you sell capital property such as farmland, investments in a corporation and farming equipment at a price that is higher than the original cost that was paid for it.</p>



<p>Capital gains are subject to a lower tax rate than ordinary income. This is accomplished by only including the taxable part of the capital gain in income, which since 2001 has been one-half of the capital gain.</p>



<p>This inclusion rate has been the topic of recent federal government announcements and is important for farmers to be aware of because of the capital gains they may trigger in the future.</p>



<p>Originally, the federal government announced that the capital gains inclusion rate would increase to two-thirds for individuals with yearly capital gains of more than $250,000 and for all corporate capital gains, effective June 25, 2024.</p>



<p>However, on Jan. 31, 2025, government released a statement announcing it would be deferring this increase, with the effective date now being Jan. 1, 2026.</p>



<p>The change could have implications for tax planning or any future decisions, including but not limited to selling assets such as land or farming equipment, retirement planning, selling investments and paying out any corporate capital dividend account (CDA) balance.</p>



<p>If farmers plan to sell their farmland, farming equipment or any other assets now at a rate of one-half instead of in 2026, when the rate potentially increases to two-thirds, they may be better off because they will have more non-taxable income, which will decrease the amount of taxes they will need to pay annually.</p>



<p>If farmers are planning on triggering a capital transaction within the next two years, they may want to consider triggering that transaction now instead of later because they will have more non-taxable income as compared to 2026 and later.</p>



<p>This will make sure farmers pay less tax on income than if they were to sell in 2026 because their gains could potentially be taxed at the inclusion rate of two-thirds.</p>



<p>The higher the inclusion rate, the more taxable income they will have, and the more taxes they may have to pay.</p>



<p>If farmers have the potential to add to the CDA in their farm company, this could also be affected.</p>



<p>In 2025, 50 per cent of their capital gains will be taxable and 50 per cent can be allocated to their CDA. In 2026, 66.67 per cent will be taxable and only 33.33 per cent can be allocated to your CDA.</p>



<p>Therefore, they may be better off building up their CDA in 2025 rather than in 2026.</p>



<p>As of today, farmers can benefit temporarily from the postponement of the change in the capital gains inclusion rate. Planning ahead is crucial, though, because the new regulations are set to take effect in 2026. Understanding this will help make wise choices now in order to reduce tax obligations in the future and will help ensure a smoother transition when the changes are implemented.</p>



<p>As always, it is important that farmers discuss these options with their trusted tax adviser to aid in their decision-making.</p>



<p><em>Colin Miller is a chartered accountant and partner with KPMG’s tax practice in Lethbridge. Contact: <a href="mailto:colinmiller@kpmg.ca">colinmiller@kpmg.ca</a>. He would like to thank Karrie Geremia and Shane Burdett of KPMG for their assistance with writing this article.</em></p>
]]></content:encoded>
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		<slash:comments>0</slash:comments>
				<post-id xmlns="com-wordpress:feed-additions:1">298825</post-id>	</item>
		<item>
		<title>Farm transition does not have to be a messy process</title>

		<link>
		https://www.producer.com/farm-family/farm-transition-does-not-have-to-be-a-messy-process/		 </link>
		<pubDate>Thu, 20 Mar 2025 16:40:06 +0000</pubDate>
				<dc:creator><![CDATA[Karen Briere]]></dc:creator>
						<category><![CDATA[Farm & Family]]></category>
		<category><![CDATA[Canadian Federation of Agriculture]]></category>
		<category><![CDATA[Leighton Kolk]]></category>
		<category><![CDATA[succession]]></category>
		<category><![CDATA[succession planning]]></category>
		<category><![CDATA[transition]]></category>
		<category><![CDATA[TransitionSmart]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=298026</guid>
				<description><![CDATA[Farm transition is often characterized as a power struggle, but it doesn&#8217;t have to be that way, heard participants at a succession workshop held as part of the recent Canadian Federation of Agriculture annual meeting. ]]></description>
								<content:encoded><![CDATA[
<p>OTTAWA — Farm transition is often characterized as a power struggle — the older generation doesn’t want to relinquish control, while the newer generation doesn’t feel valued.</p>



<p>The non-farming siblings want a share even though they’re not involved at all.</p>



<p><strong>Related stories in this issue:</strong></p>



<ul class="wp-block-list">
<li><a href="https://www.producer.com/farmliving/tax-not-sole-basis-for-succession-plans/">Tax not sole basis for succession plans</a></li>



<li><a href="https://www.producer.com/farmliving/good-governance-respect-help-farm-transitions/">Good governance, respect help farm transitions</a></li>



<li><a href="https://www.producer.com/farmliving/probate-planning-can-help-families-avoid-future-problems/">Probate planning can help families avoid future problems</a></li>
</ul>



<p>It can be a messy process that divides families and hurts feelings.</p>



<p>It doesn’t have to be that way, heard participants at a succession workshop held as part of the recent Canadian Federation of Agriculture annual meeting.</p>



<p>And it comes down to what most people know but have difficulty doing — communicating and planning.</p>



<p>Trevor MacLean, national leader of MNP’s TransitionSmart program, said there are too many unknowns if people aren’t talking and don’t have a plan in place.</p>



<p>He cautioned against triangulation, or the process of having side conversations with some people to get a message to the others. However, he said the problem is rampant when it comes to farm transition.</p>



<p>Families often love to keep score, such as who comes in late or is perceived as not pulling their weight, but there is no place for that in a farming business, he said.</p>



<p>“It is absolutely detrimental to your farm succession,” he said.</p>



<p>“If you have good governance in place, you’ll have those rules to deal with it in a business-like setting.”</p>



<p>Agreements should be drafted when there is harmony within the family and with the help of facilitators, he said. The process will always be emotional, but that can be managed through strong governance rules.</p>



<p>Some of the younger farmers at the workshop said they see farm structure as the older generation at the top and the younger at the bottom. When the younger generation is brought into the decision-making process, they don’t get a final say.</p>



<p>They said younger people want to take on more responsibility but the older generation is not willing to relinquish power because they want to stay relevant. At the same time, the younger generation has to know how to transition from worker to the boss.</p>



<p>MacLean said one way to create space is to give the younger farmer the right to make a decision on a certain aspect of the business. This could be the seeding and input plan for a quarter section, for example, which can help educate both parties.</p>



<p>The owner sees that the farm will be in good hands when it is turned over and the potential successor gets a taste of management.</p>



<p>That said, it’s also important to let young people fail — not so much that farm viability is at risk but enough for them to learn from their mistakes. The younger generation should also see the hardship involved with farming.</p>



<p>Leighton Kolk from Kolk Farms in Alberta said younger farmers can prove to the older generation that they are worthy of being part of the operation.</p>



<p>Ironically, going off the farm to get a job can do that.</p>



<p>“They may say, ‘but if you leave, we’re not sustainable,’ ” he said, and that can get the transition conversation started.</p>



<p>MacLean added there is also the possibility that parents will lose out if they wait too long to approach or include the next generation.</p>



<p>“If Mom and Dad wait too long, are they in fact closing the door on themselves because they are not allowing the next generation to come and have the influence or to actually see the opportunity?” he said.</p>



<p>MacLean said business comes down to three things.</p>



<p>“First and foremost, it’s your values, and we all know that farmers have incredible family legacy values that we hold on to,” MacLean said.</p>



<p>Resources, including natural, financial and human, are second, while the third is process.</p>



<p>“How are you putting together your resources and your values to get the outcome that you desire?”</p>



<p>Contact <a href="mailto:karen.briere@producer.com">karen.briere@producer.com</a></p>
]]></content:encoded>
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				<post-id xmlns="com-wordpress:feed-additions:1">298026</post-id>	</item>
		<item>
		<title>Good governance, respect help farm transitions</title>

		<link>
		https://www.producer.com/farm-family/good-governance-respect-help-farm-transitions/		 </link>
		<pubDate>Thu, 20 Mar 2025 16:06:43 +0000</pubDate>
				<dc:creator><![CDATA[Karen Briere]]></dc:creator>
						<category><![CDATA[Farm & Family]]></category>
		<category><![CDATA[Leighton Kolk]]></category>
		<category><![CDATA[succession]]></category>
		<category><![CDATA[succession planning]]></category>
		<category><![CDATA[transition]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=298023</guid>
				<description><![CDATA[Transition is nothing new for the Kolk family of southern Alberta. Since the farm was established in the 1950s, it has moved from one generation to the next and one commodity to another. ]]></description>
								<content:encoded><![CDATA[
<p>OTTAWA — Transition is nothing new for the Kolk family of southern Alberta.</p>



<p>Since the farm was established in the 1950s, it has moved from one generation to the next and one commodity to another.</p>



<p><strong>Related stories in this issue:</strong></p>



<ul class="wp-block-list">
<li><a href="https://www.producer.com/farmliving/farm-transition-does-not-have-to-be-a-messy-process/">Farm transition does not have to be a messy process</a></li>



<li><a href="https://www.producer.com/farmliving/tax-not-sole-basis-for-succession-plans/">Tax not sole basis for succession plans</a></li>



<li><a href="https://www.producer.com/farmliving/probate-planning-can-help-families-avoid-future-problems/">Probate planning can help families avoid future problems</a></li>
</ul>



<p>Leighton Kolk’s grandparents began the operation. Then his parents took over, and in 1989 he and his two brothers purchased the farm over a three-year period.</p>



<p>One brother soon left, Kolk told a farm succession workshop, and the other two carried on for about 20 years.</p>



<p>“Then we went through a succession planning of splitting off because we had a younger generation coming up and it was an opportunity. We could afford to do it,” he said.</p>



<p>In 2015, 2017 and 2019 he and his wife Elinor’s children entered the operation as shareholders. One of the children left after about four years, and the others bought him out.</p>



<p>And, just recently, Kolk Farms welcomed a fifth partner and the first from outside the family.</p>



<p>Kolk said having the same surname isn’t the best criteria for determining who should be part of the operation.</p>



<p>“That doesn’t make you the owner. It’s some of your ability to work together and the talent you bring,” he said.</p>



<p>He has one rule for those who want an ownership share: they have to be at least 25 years old. He said that rule allowed his children to attend post-secondary education and work elsewhere for a while. They could also work on the farm if they wanted, but they couldn’t take ownership.</p>



<p>Kolk Farms currently includes feeding capacity for about 35,000 cattle, 3,500 acres of irrigated crop land and a retail seed business.</p>



<p>Kolk said there are ways to take the “suck” out of succession.</p>



<p>These include recognizing family dynamics, timing and being realistic about roles and responsibilities. Everyone isn’t good at everything, he said, and there has to be competency across the business.</p>



<p>Economic viability is an important factor.</p>



<p>“You can’t have a succession plan if you can’t afford to do it. There might be some hard facts have to be faced,” he said.</p>



<p>“If another child or a partner wants to come into the business, they’d better be able to somehow bring 100 grand of net profit to this place. Otherwise the farm can’t afford it.”</p>



<p>Kolk said transparency about finances is also important. Their children were welcome to all farm meetings to see financial statements even before they became shareholders. That is a demonstration of trust that goes both ways.</p>



<p>“Monthly board meetings is a must for us,” he said.</p>



<p>The shareholders take turns chairing the meetings and going through plans and projections.</p>



<p>The Kolk business also has a unanimous shareholder agreement that sets out, among other things, how a shareholder can leave. Kolk said it is easy to get into something but a lot harder to get out. In the case of his son who left, there could have been difficulties if he had taken all his cash at one time. Instead, they paid him out over multiple years.</p>



<p>Kolk said treating each other professionally and with respect is critical. Siblings often have trouble with this concept because they’ve grown up together, but he said sharing a surname, or having the owner’s surname, doesn’t allow one to treat people poorly.</p>



<p>“You treat each other with respect or else don’t be part of this,” he said.</p>



<p>“We don’t need drama. We need professionalism.”</p>



<p>The new shareholder at Kolk Farms has been with the company for six years and will take the management level up a notch, Kolk said.</p>



<p>“To me, succession is never done,” he said.</p>
]]></content:encoded>
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		<slash:comments>0</slash:comments>
				<post-id xmlns="com-wordpress:feed-additions:1">298023</post-id>	</item>
		<item>
		<title>Tax not sole basis for succession plans</title>

		<link>
		https://www.producer.com/farm-family/tax-not-sole-basis-for-succession-plans/		 </link>
		<pubDate>Thu, 20 Mar 2025 15:13:48 +0000</pubDate>
				<dc:creator><![CDATA[Karen Briere]]></dc:creator>
						<category><![CDATA[Farm & Family]]></category>
		<category><![CDATA[Canadian Federation of Agriculture]]></category>
		<category><![CDATA[intergenerational farm property rollover rules]]></category>
		<category><![CDATA[succession]]></category>
		<category><![CDATA[succession planning]]></category>
		<category><![CDATA[transition]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=298007</guid>
				<description><![CDATA[No one wants to pay more taxes than necessary, but an expert says tax shouldn&#8217;t be the only thing people worry about when succession planning. ]]></description>
								<content:encoded><![CDATA[
<p>OTTAWA — No one wants to pay more taxes than necessary, but an expert says tax shouldn’t be the only thing people worry about when succession planning.</p>



<p>Ryan Kehrig, national tax leader for agriculture at MNP, said tax is a critical component of a succession plan, but people often ignore many other things they should address.</p>



<p><strong>Related stories in this issue:</strong></p>



<ul class="wp-block-list">
<li><a href="https://www.producer.com/farmliving/farm-transition-does-not-have-to-be-a-messy-process/">Farm transition does not have to be a messy process</a></li>



<li><a href="https://www.producer.com/farmliving/good-governance-respect-help-farm-transitions/">Good governance, respect help farm transitions</a></li>



<li><a href="https://www.producer.com/farmliving/probate-planning-can-help-families-avoid-future-problems/">Probate planning can help families avoid future problems</a></li>
</ul>



<p>“There are so many other factors and dynamics that need to be sorted through, agreed upon and discussed with all parties before tax needs to become involved,” he told a succession planning workshop at the Canadian Federation of Agriculture annual meeting.</p>



<p>“Without having these necessary discussions, the best laid tax plan is pretty much doomed to fail if we don’t have the underlying dynamics right for a true farm succession and transition, along with required buy-in.”</p>



<p>Kehrig said there has been concern about proposed <a href="https://www.producer.com/news/navigating-capital-gains-maze/">changes to capital gains inclusion rates</a> and the lifetime exemption, but farmers still have access to the most powerful tool available: the intergenerational farm property rollover rules.</p>



<p>Under that policy, qualified properties can be transferred to children and the tax is deferred.</p>



<p>He said the big ticket items when it comes to farm transfer are farmland, production or quota, interest in a family farm partnership and shares in a family farm corporation.</p>



<p>“If these (rollover) rules didn’t exist and you couldn’t do these tax-deferred transfers every time this qualified farm property was transferred to the next generation, there would be a corresponding tax liability on the increases of these assets,” Kehrig said.</p>



<p>Given how much land has increased in value, the tax on those gains would have to come from the cash flow of the operation. He said in many cases, that tax bill would be so large it would make the farm no longer economically viable.</p>



<p>Theoretically, if the farm continues to be passed from generation to generation, it could escape capital gains forever.</p>



<p>Kehrig also outlined the capital gains discussion that has occurred since the April 2024 proposal to increase the capital gains inclusion rate and the lifetime exemption. Both of those changes have been deferred until Jan. 1, 2026, and given the current political uncertainty, it’s unknown whether they will take effect.</p>



<p>Other legislation that affects farm transfer was contained within Bill C-208, as it was then known, in June 2021. It levelled the playing field for parents who were looking to sell their farms to their children.</p>



<p>Before that bill passed, parents selling to children would have been in a worse financial position than if they sold to their neighbours.</p>



<p>“Originally the sale proceeds received from their kids would have been taxed at dividend rates, and in Canada dividend rates are higher than capital gain rates,” Kehrig said.</p>



<p>In 2024, the policy was tightened to add safeguards that ensure true business succession occurs. Kehrig said it is a little more restrictive but still a powerful tool.</p>



<p>“This allows parents potentially out of the farming operation at effective tax rates, helping to cash flow their retirement, estate planning needs while giving the next generation of farmers the certainty that they need to pay out their parents in a tax efficient manner,” he said.</p>



<p>He repeated that taxes shouldn’t be the driving motivation for transition.</p>



<p>“The tax tail should not wag the dog. It should be the other way around here,” he said.</p>



<p>Trevor MacLean, national leader of MNP’s TransitionSmart, said communication, transparency and taking the time to develop a proper plan are key.</p>



<p>“Communication is where your success will start or where the suck will come into your succession plan,” he said, adding sound governance to the list of critical components to a successful transition.</p>



<p>Kehrig reminded workshop participants that fair and equal are not the same thing and that it’s up to the retiring generation to decide what they want to do.</p>



<p>“The best transition plans from a tax and overall perspective are where nothing’s a secret,” he said.</p>



<p>Contact <a href="mailto:karen.briere@producer.com">karen.briere@producer.com</a></p>
]]></content:encoded>
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				<post-id xmlns="com-wordpress:feed-additions:1">298007</post-id>	</item>
		<item>
		<title>Farm transition service offered</title>

		<link>
		https://www.producer.com/news/farm-transition-service-offered/		 </link>
		<pubDate>Thu, 22 Feb 2024 14:25:47 +0000</pubDate>
				<dc:creator><![CDATA[Saskatoon newsroom]]></dc:creator>
						<category><![CDATA[News]]></category>
		<category><![CDATA[farm transition]]></category>
		<category><![CDATA[farm transition plan]]></category>
		<category><![CDATA[Farmers’ Bridge]]></category>
		<category><![CDATA[Loft32]]></category>
		<category><![CDATA[Other]]></category>
		<category><![CDATA[transition]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=282343</guid>
				<description><![CDATA[Loft32, an agricultural communications company, has launched a new farm transition service. Called Farmers’ Bridge, it provides online training and assessments for families that want to develop a farm transition plan. A series of three to five minute videos feature experts answering common succession questions such as “what is Canada’s farm rollover rule” and “what’s [&#8230;] <a class="read-more" href="https://www.producer.com/news/farm-transition-service-offered/">Read more</a>]]></description>
								<content:encoded><![CDATA[<p>Loft32, an agricultural communications company, has launched a new farm transition service.</p>
<p>Called Farmers’ Bridge, it provides online training and assessments for families that want to develop a farm transition plan.</p>
<p>A series of three to five minute videos feature experts answering common succession questions such as “what is Canada’s farm rollover rule” and “what’s the difference between conflict and fighting?”</p>
<p>Another course provides practical tools on how to make decisions together, understand conflict and create clarity with aligned goals.</p>
<p>The service can also connect farm families with advisers to help with conflict mediation, counselling, transition planning, financial planning, coaching and tax and legal advice.</p>
]]></content:encoded>
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				<post-id xmlns="com-wordpress:feed-additions:1">282343</post-id>	</item>
		<item>
		<title>Conservation easement a family affair</title>

		<link>
		https://www.producer.com/farm-family/conservation-easement-a-family-affair/		 </link>
		<pubDate>Thu, 17 Aug 2023 16:30:36 +0000</pubDate>
				<dc:creator><![CDATA[Freelance writer, Mary MacArthur]]></dc:creator>
						<category><![CDATA[Farm & Family]]></category>
		<category><![CDATA[Bob Thomson]]></category>
		<category><![CDATA[Brad Mappin]]></category>
		<category><![CDATA[Conservation]]></category>
		<category><![CDATA[conservation easement]]></category>
		<category><![CDATA[Ducks Unlimited]]></category>
		<category><![CDATA[succession]]></category>
		<category><![CDATA[succession planning]]></category>
		<category><![CDATA[Terri and Brad Mappin]]></category>
		<category><![CDATA[Terri Mappin]]></category>
		<category><![CDATA[transition]]></category>

		<guid isPermaLink="false">https://www.producer.com/?p=274988</guid>
				<description><![CDATA[A decision to apply a conservation easement to about 2,000 acres of native grassland and protect it forever was put on hold until Terri and Brad Mappin’s teenage children could be part of the discussion. “It was something important for the kids to understand the implications of it,” said Terri. The family doesn’t know if [&#8230;] <a class="read-more" href="https://www.producer.com/farm-family/conservation-easement-a-family-affair/">Read more</a>]]></description>
								<content:encoded><![CDATA[<p>A decision to apply a conservation easement to about 2,000 acres of native grassland and protect it forever was put on hold until Terri and Brad Mappin’s teenage children could be part of the discussion.</p>
<p>“It was something important for the kids to understand the implications of it,” said Terri.</p>
<p>The family doesn’t know if their sons, aged 18 and 17, will be part of the farm’s future, but the couple felt they needed to be part of the discussion and decide together if they wanted to place part of their central Alberta farm into a conservation easement and never allow it to be cultivated.</p>
<p>The couple talked about placing a conservation easement on the land with Ducks Unlimited’s conservation specialist Bob Thomson a few years earlier, but believed the children were too young to process the long-term consequences.</p>
<p>Instead, in 2016, the family entered into a 10-year wetland restoration agreement with the conservation organization to plug previously drained sloughs, reseed grass and restore the wetlands on their dryland farm.</p>


<figure class="wp-block-image size-full"><img fetchpriority="high" decoding="async" width="707" height="472" src="https://static.producer.com/wp-content/uploads/2023/08/16163520/17-3-col-Mappin-MovingCowsT20_1636-Edit-707.jpg" alt="" class="wp-image-274952" srcset="https://static.producer.com/wp-content/uploads/2023/08/16163520/17-3-col-Mappin-MovingCowsT20_1636-Edit-707.jpg 707w, https://static.producer.com/wp-content/uploads/2023/08/16163520/17-3-col-Mappin-MovingCowsT20_1636-Edit-707-235x157.jpg 235w" sizes="(max-width: 707px) 100vw, 707px" /><figcaption class="wp-element-caption">Ryley and Brady move a group of pairs across a tame pasture that is under a conservation easement with Ducks Unlimited.  |  Mappin family photo</figcaption></figure>


<p>“We went with the wetland restoration and did as many wetland restorations as we could in that time frame. Three years ago, we sat down with the kids again and said, ‘hey, what do you foresee in the future.’ ”</p>
<p>There was no definitive answer about the kids’ future, but the children also didn’t want to see the native grass broken and together they went forward as a family with the conservation easements.</p>
<p>“The conservation easement keeps a generation moving forward with our plans. When it comes to farm transitions, or where it goes, communication is 99 percent of that. It is a huge component of it.” </p>
<p>“Transition wise it was so important for those kids to understand the implications of it before they would sign.” </p>
<p>Brad grew up farming, but in 1994 bought five quarters from an aunt and uncle who were retiring. The farm has grown to 22 quarters with a lot of on-farm and off-farm work. At one time, the farm was a traditional mix of grain and livestock, but is now strictly focused on cattle.</p>
<p>Along with other families, they started the Palliser Grazing Club to support and learn about the best ways to graze cattle in their area, the transition zone between the rough fescue and mixed-grass prairie.</p>
<p>“We were excited to move forward with the grass.”</p>


<figure class="wp-block-image size-full"><img decoding="async" width="707" height="472" src="https://static.producer.com/wp-content/uploads/2023/08/16163514/17-4-col-MappinCattleFallTLM_5612-Edit-copy-707.jpg" alt="" class="wp-image-274951" srcset="https://static.producer.com/wp-content/uploads/2023/08/16163514/17-4-col-MappinCattleFallTLM_5612-Edit-copy-707.jpg 707w, https://static.producer.com/wp-content/uploads/2023/08/16163514/17-4-col-MappinCattleFallTLM_5612-Edit-copy-707-235x157.jpg 235w" sizes="(max-width: 707px) 100vw, 707px" /><figcaption class="wp-element-caption">Cattle graze on native pasture under a Ducks Unlimited conservation easement. | Mappin family photo</figcaption></figure>


<p>Mappin believed having age-appropriate conversations about farmland, the future, death and transition when the children were younger has helped guide harder conversations as the children grow older.</p>
<p>“What if something happens to Mom and Dad? What if only one wants to come back? What if both want to come back? So many failures are because of the lack of communication.”</p>
<p>As the kids have gotten older, the conversations have become more formal, scheduled meetings. </p>
<p>Mappin said the children are encouraged to leave the farm, but the door is always open to return.</p>
<p>“We strongly encourage the boys to just leave the farm. We want to encourage kids to see what is out there and what interests them, but also let them keep a foot in the door and hang on to the things they love about here as well.”</p>]]></content:encoded>
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