For farmers, farm succession planning isn’t just another business decision – it’s a complex and multi-layered process that can come with its fair share of emotions.
For this reason, succession planning is often avoided or left until the last minute, deemed too hard or too emotionally triggering. While this can be true, it doesn’t have to be the case – with the right support and guidance, succession planning can become a deeply rewarding process that offers a pathway to farm business success and a bigger future, for all involved.
In this guide, we’ll introduce you to the essentials of farm succession planning, helping you chart a course that preserves your legacy, focuses on family harmony, and ensures a smooth transition from one generation to the next.
Farm succession planning is a multifaceted and crucial process for farm businesses that want to transfer ownership and management of a farm to the next generation.
At its core, farm succession planning involves transitioning the farm’s assets and operations to the next generation who’ll take on the responsibility and continue the business’ legacy.
While this is true for most generational farms, it’s important to remember that no two family situations are the same, and each farm has unique dynamics, goals and financial complexities that need to be navigated.
While the specifics will vary for each family, there are several components of farm succession planning we can recommend. Things like having open family communication, professional guidance, documented plans, and integrated wealth and estate strategies are important and can help align current positions and future goals. Here are some other tips worth considering too:
1. Start Early
As the saying goes: “The best time to plant a tree is 20 years ago, the next best time is now.” In other words, don’t wait until you’re ready to retire to start your succession plan – start it as soon as possible.
2. Seek Independent Advice
Each family member or couple should seek independent advice to ensure their interests are represented.
3. Detailed Scheduling and Execution
It goes without saying that without implementation, there’s no farm succession plan.
4. Regular Review and Adjustment
Farm succession plans aren’t static – they require consistent reviewing to adapt to changes within the family, with finances, or in response to unplanned life events.
5. Family Approval and Integration
The goal is to foster a shared understanding of the “whys and hows” with all the family members involved. Tailoring communication approaches to build confidence and avoid sensitivities is key, while relationship dynamics, biases, and legacy preservation should all be taken into account.
For the retiring generation, the greatest wish is often for the succession outcome to be fair for everyone involved. However, depending on the circumstances, achieving fairness in farm succession planning could result in an unequal distribution of assets.
There are always competing interests at play in succession – it’s rare to achieve a perfectly equal outcome. In many instances, fairness is reached when each family member has to compromise, while respective interests must be balanced against one another’s interests (and even then, achieving fairness can be difficult to attain).
Having a succession plan in place is key to having a healthy farm business – it helps to preserve your farm’s legacy, ensure a seamless transition of your farm and lays a solid foundation for the next generation to come.
Designed with a keen understanding of the unique challenges faced by farmers preparing for succession planning, our Farm Business Success program provides tailored financial solutions to meet the specific needs of your farm and family.
Led by Matt Meehan who brings a wealth of experience in financial planning, accounting, and a deep understanding of the complexities of farming businesses, this program can help guide you through every aspect of the succession planning process. From navigating legal requirements to developing strategic financial plans and implementation, our team at Lifesolver is here to support you, ensuring that your farm continues to thrive for many generations to come.
Take the first step towards securing a bigger future for your family and farm by visiting our Farm Business Success page or book a call with Matt.
General Advice Warning: This blog/article is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.
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We are pleased to advise that Lifesolver has merged with Advisory Partner and Practical Systems. Through this new group, we are able to strengthen our focus on rural people and businesses, with excellent local service (and offices).
From conducting market research to setting goals and projecting your finances, creating a profitable farm business plan might be just the thing you’re missing when trying to stay on track and plan for the future of your farm.
Whether you’re interested in cropping, livestock, or any other farming venture, this guide is designed to provide you with the knowledge and skills you’ll need to create a clear business plan for your farm. Let’s get started!
As the age-old adage goes, “Those who fail to plan, plan to fail.” This rings especially true in the realm of farming. Without a clear roadmap, achieving success can feel like you’re aiming at a moving target, but you what should you include in your farm business plan? That’s where we come into play with our guide to the 8 things to include in your farm business plan.
Who will own your farm in 10 years?
Designed to make you stop and think, this question instantly conjures images of the future and the possibilities that lie ahead. But what if we told you the only way to get as close as possible to your desired outcome is to get proactive about your succession plan?
An Introduction to Farm Succession Planning | In this guide, we’ll introduce you to the essentials of farm succession planning, helping you chart a course that preserves your legacy, focuses on family harmony, and ensures a smooth transition of farm ownership and management from one generation to the next.
We’re thrilled to share the transcript from a compelling podcast featuring our founder, Matt Meehan on the Farms Advice Podcast hosted by Jack Cresswell.
As an authoritative voice in agribusiness and financial planning, Matt lends his extensive expertise and personal anecdotes to this insightful conversation.
