If you’re thinking about or nearing retirement, or even if that won’t happen for quite a while yet, what have you been doing to prepare the farm’s next leader? This training makes a major difference when it comes to how smoothly your farm transitions, and the confidence level of the next leader.

Business and corporations work years in advance to ensure leadership handoffs occur smoothly, especially for high-level positions. Corporate leaders know the right training takes time, so it’s best to have a plan and start as early as possible.

Today, the farm is no different. Even if the farm’s next leader grew up on the farm, they need to spend time training with the current leader. They need to learn directly from them – and be exposed to other perspectives as well – as they gain the skills necessary to lead and manage the operation.

A changing environment

Sometimes we think the next generation ought to already know how to lead the operation or that they should just be able to figure it out. Maybe that’s how it happened to you – it was trial by fire.

We know that the ag environment has changed in recent years. The pace is faster, the decisions are bigger, and the level of business acumen needed has increased. In this tougher environment, it’s critical to set up your future leader for success – by creating a plan to educate them.

The future leader needs to be proactive in working to prepare themselves. What books are they reading – not only about agriculture, but on business in general? What are they working to learn? We know that learners usually get ahead (see last week’s post for a few more thoughts on that topic).

Training days

Get a plan in place – perhaps enlisting the help of a transition specialist, such as a legacy advisor – for how you will prepare your successor leader in each area of future responsibility. Here are a few business aspects to include.

Financial management. Smart financial management makes a huge difference in an operation’s potential success. Even if a transition may be years down the road, start involving your successor leader in this area as much as possible, now. They need to be involved in activities like budgeting and comparing the budget against actual spending. Ask them to suggest areas where the farm could become more efficient.

Relationship management. Involve your successor leader in meetings with partners, suppliers, bankers and landlords. Have them observe how the meeting runs and how you approach each type of meeting. Ask what they’ve observed in each meeting, and when both of you are comfortable, have them lead a meeting.

Leadership skills. Some people think that the ability to lead is something you’re either born with or you’re not. But the truth is that leadership skills can be learned and coached just like other skills. Have your successor read books about leadership. Coach them to apply what they learn or find an advisor to help you with that. The best leaders use skills like self-awareness, communication and humility as they lead their operations each day.

Read the new issue of the Smart Series publication, bringing business ideas for today’s farm leader. This issue features a pre-harvest legacy checklist, how to build your farm’s team, and ideas on planning for your farm’s future. Get your free online issue here.

The opinions of the author are not necessarily those of Farm Futures or Penton Agriculture.