Passing down a family farm involves careful planning to ensure a smooth transition and continued success of the operation, but are you up for that job?
Let’s face it, some people are planners who just can’t wait to get out the forms and start typing. Then there are others who when the “farm succession planning” topic comes up, they immediately have a chore to do outside.
In either instance, a third-party mediator could help navigate complex decisions between different personalities to finally create a family farm succession plan that works for everyone.
Help comes from various places
Third-party professionals are those who do not have a stake in the financial decisions you are about to make regarding your farm estate. So, who are they?
Qualified professionals to add to the succession plan conversation may include:
a certified succession planner
a financial or estate planner who specializes in farm estate planning
an arbitrator to help with family discussions
your banker to help with finance resources
your accountant who has income records and projections for your business
your personal attorney, or one who specializes in tax issues
Before entrusting your farm's future to one or more of the above, it's essential to know if they are the right person for the job.
Questions to ask before committing to planner
Here are four questions to pose to those you want involved in your private family discussions:
1. How do you approach multigenerational communication and collaboration? The American Farm Bureau Federation recommends a planner who emphasizes the need for open and honest conversations about expectations, responsibilities and goals.
2. How do you address the emotional aspects of succession planning within a family? Family Farms Group specializes in addressing the emotional dynamics of farm succession. They highlight the importance of someone who can acknowledge and manage emotions within the family, from one generation to the next generation.
3. How do you stay informed about changes in agricultural policy and regulation that impact farm succession? There are a number of sources a planner can use. The National Agricultural Law Center provides up-to-date information on agricultural law and policy, with resources to help succession planners stay informed about regulatory changes. You need to make sure your succession plan aligns with current legal requirements.
The American Farmland Trust focuses on policy issues affecting agriculture and provides resources to help farmers and succession planners understand and navigate changes specifically in land-use policies.
4. What experience do you have facilitating successful farm transition, and can you provide references from past clients? Land for Good — an organization focused on farmland access, tenure and transfer — says like any employer, farmers should check references and ensure that the planner has successfully guided other farm families through the succession process.
Bottom line
Selecting the right succession planner is a critical step to keep the farm in the family for generations to come. Don’t leave it up to chance. Ask the questions, listen to the answers, and make your selection that aligns with your family's values and goals.
Remember your farm is unique, so a tailored approach to succession planning is critical for a successful transition.
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