Wallaces Farmer

Legal Issues: Practical strategies can help start the conversation on estate planning, and avoid or resolve family conflicts.

Erin Herbold-Swalwell

December 16, 2021

4 Min Read
Gavel at the judicial office
Wutwhanfoto/Getty images

Life is busy and ever-changing. Whether it is the holidays, tax preparation time, family get-togethers or other life events, sometimes it is just plain hard to get everyone together to start a conversation on your farm succession plan.

Often, the most difficult aspect in developing and implementing a farm succession plan is starting the conversation. It is easy to put the conversation off to avoid hard discussions because avoiding the conflict is easier than dealing with a potential rift in the family.

Take a deep breath. There is a way to handle these conversations and achieve the best long-term result — successfully transitioning the family farm. Rather than getting overwhelmed by the process and disengaging, take it a step at a time.

You may want to start with a goal-setting meeting with your family and successors, and build from there. There are many skilled experts who can help facilitate this process. You may think that goal setting lacks value, but it has been proven that focusing on your goals, value and vision helps steer the conversation.

Once you have set your goals, the professionals you work with — including attorneys, accountants, consultants, financial advisers and your banker — can help with implementation and strategies.

A valuable resource

Every year, Iowa State University Extension’s Beginning Farmer Center offers a Succession Planning Workshop. This two-day seminar held in Ames on Feb. 10-11 will assist farm families in developing a plan to bring the next generation back to the farm to live and work.

The conference will include presentations from industry experts on the nuts and bolts of planning, goal setting, and current markets and opportunities. Registration information can be found at ISU Extension

The website also includes a wealth of information relating to issues affecting beginning farms and tools to help develop a succession plan. Whether you plan to attend or not, it is a good idea to use the winter months to get together with family, preferably not over the holidays, and have those crucial conversations.

Every family has different dynamics, every farm has a different operation, and every legal situation involved is different. It is often helpful to involve the family or potential farm successor from the beginning.

Family involvement can come in different forms. Some farm business owners bring the entire family, including the farming successor, “to the table” and involve them in the discussion at the outset. Some folks have a plan in mind, get the essential documents drafted and then involve the family to discuss how the plan will work.

As I have said before, there is no right or wrong answer. Every family has a certain comfort level in involving kids, grandkids, off-farm heirs, on-farm heirs, in-laws, etc., in the plan. However, many planners have found involving the essential parties in the plan from the beginning — most especially the heirs or parties that will carry on the farming business — helps avoid communication issues in the future. 

When discussions don't go well

When the conversation becomes too challenging, why not try mediation or hire a facilitator? I recently spoke with Stan Dearduff, a trained mediator with the Iowa Mediation Service. The Iowa Mediation Service is a nonprofit founded in 1985 that is “dedicated to solutions for farmers, families, organizations, and any group or individual who may find themselves in need of a conflict management expert.” For more information, see iowamediationservice.com.

In addition to the mediators at Iowa Mediation Service, many highly trained mediators and facilitators across the state specialize in mediating and resolving farm disputes, whether personal or business-related. Hiring the services of a trained mediator or other third-party facilitator may seem uncomfortable, but the benefits are clear.

First, mediation or informal facilitation of a dispute can be much more cost-effective than dealing with litigation and attorney fees down the road. Unfortunately, litigation can drag on for years and can often result in a complete breakdown of relationships among family members.

Second, a facilitator is specifically trained to help families change their patterns of communication or lack of communication. They can help steer the conversation and encourage serious discussions about uncomfortable events, such as death or misperceptions that have developed among family members. Facilitators often possess a unique understanding of farm operations, trends and the financial structure of farms.

Remember, you are not alone. Succession planning is a process that evolves over the years, and there are no family farm operations immune from it. The family that plans together, stays together.

There is no one-size-fits-all farm succession plan. Each family and each farming operation needs a personalized plan. In my experience, the family that stays in communication is far more likely to achieve long-term success. Rest assured, there are many resources and advisers out there that can help facilitate this process.

Herbald-Swalwell is with Herbold-Swalwell, Parker & Geadelmann PLLC. You can reach her at [email protected].

 

About the Author(s)

Erin Herbold-Swalwell

Erin Herbold-Swalwell is an attorney with Wickham & Geadelmann PLLC.

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