It’s said that there are two pains in life: the pain of discipline and the pain of regret. Without exercising the first, you eventually carry the weight of the second. Pinion farm business advisors have sat across the kitchen table from many farmers carrying the heavy weight of regret.

Often that regret is from words left unspoken and plans left unmade. Pinion advisors share these poignant stories and regrets, as recounted by retired farmers, along with advice to help you avoid similar regrets in your own life, business and family.

4 Biggest Regrets of Retired Farmers

1 . “I put off succession planning and it cost my family and our farm.”

Jeanne Bernick, Certified Family Business advisor with Pinion recently sat around a kitchen table with the family of a 74-year-old, third-generation farmer in Iowa. An unexpected health scare prompted the family to meet and discuss succession and retirement options. 

“It often takes a significant life event, such as a death or divorce, for farm families to work on their transition plan,” explains Bernick. “Many times, farmers just don’t know how to start.” This puts family relations, farm legacies, and retirement options at risk.

Lesson Learned

Enlist an advisor early to keep you on track and navigate the transition – whether you think it might be 3, 5, 15 or 20 years away. An experienced advisor can map out your budget and cash allocation ahead of retirement so that you’re positioned to retire when you want or need to.

2 . “I assumed our will would take care of everything.”

According to Jim Rein, Pinion’s Next Gen advisor and estate planning expert, “Many folks will complete some form of estate planning (having a will or living trusts for example) but think once that’s in place they are done with estate planning for their entire lives, and that’s often not the case.”

During a tour of a family operation in the Midwest, a Pinion client pointed out a neighboring operation that was adjacent to theirs. He said, “You should have seen that place 10 years ago.  It was beautiful….well run, well-maintained equipment, and just a really great operation.” He continued to share that the patriarch passed away and the operation fell into disarray, adding that the surviving family members were fighting over the estate. “I heard he did some estate planning like a will or something, but it obviously wasn’t enough to keep the thing going the way he wanted….what a shame.” Then he added, “That’s why we’re taking this drive….I don’t want my operation to end up like that.”

Lesson Learned

It’s crucial that you make sure your planning fits with your desires and dovetails in with current and future situations that arise. Estate planning is a process and should be reviewed and “tweaked” from time to time, especially in conjunction with altered family circumstances, economic changes, and tax law revisions.

3 . “I didn’t get my children’s input on future planning, and it led to resentment.”

Davon Cook, Pinion Family Business advisor, recounts the story of a farmer determined to avoid saddling her children with the kind of chaos her parents had imposed on her and her siblings. Her parents passed without discussing the intent of their will with their children and it left everyone confused and resentful about the future of the family farm. She wanted to be more collaborative with her children and think about how they would manage it after she’s gone.

In her first meeting with financial advisors, the conversation quickly focused on the importance of avoiding estate tax. She chose trust strategies that accomplished that, but realized later that her children wouldn’t get along well enough to co-manage the assets. She got carried away focusing on only one goal. Despite her intentions to do things differently than her parents, she found herself in the same spot: not letting the family design a realistic solution together. She wished she would have talked with each of them and gathered their input before making this important decision.

Lesson Learned

Do not put off the hard conversations. Get everyone around the table and ensure everyone has a clear understanding of goals, hopes and expectations. These conversations can be uncomfortable and may lead to conflict, but there is a cost to the conversations that are put off.

4 . “We waited for an emergency to plan for the future.”

It’s a call you never want to get: “There’s been an accident, come quickly.” This is a situation Jeanne Bernick has heard many times from farm clients who come to Pinion for family business advisory. Farm families reeling from the loss of a loved one while trying to keep the business moving forward. Unfortunately, time doesn’t stop on the farm, and now these families have to pick up the pieces and make tough, emotional decisions amid grief and shock. A proper succession plan would save these families a great deal of heartache.

Lesson Learned

Get ahead of disaster. Create continuity plans you can resort to in case of an emergency like an accident, disability or death. Operations only move forward in times of crisis when they can communicate clearly and quickly on daily farm management.

Key Takeaway: You Don’t Have to Learn the Hard Way

While farmers pride themselves as natural stewards of the land, and often have generations of success as backing – the only guarantee toward the future is taking a thoughtful step into it. Those who focus solely on today are taking on a huge risk for themselves, their family, and their legacy. This is one lesson on the farm you don’t want to learn the hard way.

Pinion’s Next Gen experts are dedicated to the food and agriculture industry and understand what matters most to you. By developing a long-term strategy that is reflective of your business and personal goals, together we will generate, assure, and enrich your legacy.

Our experts can help develop your next gen plan, facilitate important conversations, navigate transitions, and protect the legacy you’ve worked so hard to build.

For questions or to get started, contact Pinion’s Next Gen team.