There is no correct answer for when to begin farm succession planning. Finding the right time to let the next generation jump on board and start making decisions is no simple task. However, the members of Clements-Miller Farm in Lynn, Ind., shared more about the solution that worked for them at the Purdue Farm Management Tour: Set the next generation free on business decisions.
Rex Clements started pushing the decision-making to his son-in-law, Wade Miller, as soon as Miller came back to the farm in 2011.
“It was an easy decision for me to turn it over and get rid of a lot of stress,” Clements said.
Miller married Clements’ daughter, Jill, and the couple returned to the farm after Miller spent some time working in the grain industry. Upon their return, Miller and Clements started considering how to transition and grow the operation. It was a slow start, but after a few years, they found their groove.
Where to start with farm succession
With endless decisions to be made in a farm operation, there is no clear place to start. Clements explained that they thought a good beginning strategy would be allowing Miller to decide what would be planted and where it would be planted.
From there, they began evenly splitting the costs of new machinery as they traded in older pieces. This started after Miller had been back at the farm for a few years. Clements said most of the equipment is now split half-and-half, and soon, Miller will make purchases entirely on his own.
When it comes time to trade a piece of equipment for something newer, Clements explained that Miller now has final say.
“On the equipment, we just talk amongst ourselves,” Clements added. “I voice my opinion, but I leave that up to him to make the final decision.” Aside from machinery, the pair have worked to transition rented acres to Miller as Clements continues to cut back his percentage in the operation.
Miller is also in charge of managing the farm’s data and writing prescriptions for all their acreage. Clements shared that Miller’s agronomy skills made this an obvious responsibility for him to assume.
“Wade is a better agronomist, and with all of the technology that’s out there, that was another reason I turned it over to him,” Clements said.
Miller shared that they are always discussing ways to make the operation better. They are constantly assessing new practices and areas that can be improved.
“Every year, we’re doing tests to see what the next thing is that we need to take fields to the next level,” Miller said.
Establish trust between generations
Clements said that improvement mentality is one of the reasons he was able to easily push decisions to Miller. His son-in-law’s farming background also left Clements feeling secure about the future of the operation with Miller on board.
“He was a farm boy who understood farming,” Clements added. “I would’ve been more cautious otherwise.”
Miller does not abuse that decision-making power. Although he now has the final say, he still factors in advice and guidance from Clements.
“We still talk about a lot of stuff, especially when we’re trying out new things,” Miller said. He added that Clements doesn’t say too much about seed variety selection or other small year-to-year decisions, but he explained that they do take the time to discuss big decisions like trading equipment.
Future of farm
With Clements continuing to cut back his percentages on equipment and ground in the operation, he admitted that worries about what the future will hold for Miller. He recognizes that this can be a difficult climate for the next generation to try expanding.
“How will he expand with the price of ground and with today’s commodity prices?” Clements said. “I don’t see how it’s possible. But you go back 40 years, and they were probably saying the same thing.”
To diversify the operation and spread risk, Miller and Clements purchased a ditching machine and kick-started a tiling venture. They decided to pull the trigger on that purchase because Miller felt he had the time. He headed out to Ohio to attend a three-day tiling school and came back with the skill set to operate the new machine.
“We were always on the list waiting for someone to come and do it, so we decided to start doing it ourselves,” Miller explained. With this new investment, they plan to update the tile on all their ground in the next two years, which is just another way they are improving the operation.
Clements is optimistic about the farm’s future. He shared that he never knew what he would do if his daughter married a farm boy. But he is happy that this is where they are today.
“Wade has been the saving grace for transferring the farm,” Clements said.
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