Many of the farmers I work for have a tough time with the
process of getting their business into the hands of the next owner/manager. The
reasons for this are many; no time, unwilling to think about mortality, not
aware of what should happen, and uncertainty about losing control are some of
the primary reasons often heard. Because of the intimate relationship between
most farms and the families that work and live there; the unknowns around a
broad family conversation on business transition can be a bit scary.
When is the best time to start the discussion?
If succession planning has been on your mind remember
there are just six weeks left in 2016 and some holiday celebrations coming up.
This could be a great time for a discussion with family regarding farm
transition and succession planning. It's great that you're thinking about
succession planning, but remember, conversations about farm succession are
conducted from a business standpoint. Do you really want to turn your
Thanksgiving table into a business conference table? Do you want to take your time around the
Christmas tree and turn it into a water cooler discussion on strategic
planning?
While it may be tempting to start these discussions while
family is home and together, make sure you're keeping family time for family
and setting aside a special time for holding a family business meeting. If it
needs to be connected to a holiday to have family present, think about sending
out a formal invitation and agenda to the meeting ahead of the holiday, with a
set time and date for the meeting later in the holiday weekend.
When should I start planning?
You may have heard the old Chinese proverb. “The best
time to plant a tree was 20 years ago, the second bet time is now.” That same
principal can be applied to succession planning. It really is NEVER too early to start
planning for the future, but it can become too late to start! Almost everyone knows a family torn apart by
disagreements following the passing of a loved one. This often happens because
they never found the time to put their plans down on paper.
You can never tell what tomorrow will bring. Starting
your succession plan early in your agriculture career can help you save money
and can make sure your business continues as you see fit in the case of retirement,
death or disability. If you create a
plan early in your career, it does not mean you are done. A good succession plan is reviewed and
improved often to make sure it still fits with the wants and needs of everyone
involved in the operation.
