The business. This might seem obvious, but it needs to be considered because it’s so critical for a smooth transition to the next generation. Is the farm’s business side in order? How is the farm set up in terms of the legal side (as an entity, several entities, etc)? Consider the impact the current business set-up will have when it’s time to transition ownership to the next generation. Will it provide for a smooth transition or create financial difficulties for both the older and younger generation in any way? Also consider whether the farm is fully being run as a business, including using financial statements and other metrics and projections to guide decision-making.

The financials. Speaking of financials, this is a huge part of the farm’s legacy as well. Is the farm’s next generation of leaders currently “in the know” about the farm’s financial position, or are they “in the dark”? It might seem tough to open the books to the next generation if you haven’t done so already, but it’s absolutely critical for them to know exactly what they are getting into. They also should start being part of meetings with lenders and other financial advisors if they haven’t yet. Being able to converse readily with the banker about the operation while using financial terminology is an important skill that the next leader or leaders need to start practicing now. Financial literacy will be key, especially in the next years of farming.

The leadership. The main leader that your farm’s future leader has observed and will likely imitate is you, the current leader. Consider the legacy of farm leadership that you want to provide the next generation. What are the top traits and skills you hope they observe and put into practice? Work to be intentional about how you lead people in the operation. Make a list of ways you can work to guide your future leader to become the best leader they can be. That won’t necessarily mean they lead exactly the same way you do, but you can give them opportunities to practice using their top strengths and natural leadership abilities to develop their own leadership style over time.