Farm Progress

Profit Planner: Panel tackles retiring farmer roles — succession planner, chairman, partner, consultant, truck driver, bookkeeper, golden years ‘milker.’

August 7, 2017

5 Min Read
WHAT NOW, HON? Next-gen farm families play a key role in helping retiring farmers plot out a new future.Halfpoint/iStock/Thinkstock

Q: I’ve been blessed with having our next-gen take over the farm’s management. What’s the best role for me — chairman of the board, consultant, outside investor, truck driver or shop putterer? Is there a best way to ease into retirement?

A: Mike Evanish: You are indeed blessed
Far too often, the children of a successful operator choose not to continue the operation. Your new role in the business must be based on several factors:

• What skills do you bring to the table? Not every farmer is good at every task that needs handling. If you like numbers, being the chief financial officer could be a plan. If you always left the numbers to someone else, that role is out.

• Once you move beyond your skills, your desires for the future matter. Many farmers I worked with want to travel — some extensively. If this is your desire, how could you possibly take on a role where you need to be on the farm every day?

• What do your written succession plan documents say? Many times, your role moving forward would be spelled out in them.

Assuming your agreements don’t spell out your role, it’s time to engage the new owners. What’s their vision of your future in the operation? Depending on the family dynamic, this can be a positive or negative conversation. Either way, it’s a conversation that needs to take place.

A: Dale Johnson: Enjoy the season you’re in
Life’s analogous to a farm’s seasons: 0 to 20 is spring; 20 to 40 is summer; 40 to 60 is autumn; 60 and over is winter. In the spring, we sprout and develop slowly at first, then gain momentum. Summer is the season of rapid growth to full potential through education and life experiences. Autumn is a time of maturity and reaping benefits of our experience. Winter is for enjoying fruits of our harvest.

I can only tell you that in the winter of your life, you should enjoy your harvest fruits. Your health and energy levels may begin to dissipate. But there’s still much to do.

You can make great contributions to your farm, family, church and community. Enjoy things you never had time for while working full time. List those things most important to you and make a long bucket list — things to do before you kick the bucket. Plan out your future in detail to accomplish those things.

I wouldn’t characterize it as “easing into retirement.” It’s neither easing nor retirement. You’re shifting your enthusiasm to new and different activities.

Growing up on a potato and wheat farm, I learned to love winter as a time for enjoying the harvest. I began enjoying my life’s winter this year.

A: George Mueller: Experienced senior partner’s advice
Our good friends from town get a gold watch and a rocking chair when they experience the abruptness of retirement. Doctor visits become their social life.

We farmers have so much more to do than waste time in front of a TV. We can go into our “golden years” as farmers.

Your suggestions are right on! I like the “chairman of the board” title. We have a monthly partner meeting to discuss our progress, challenges, future plans and financial situation. It’s an excellent way to keep track of progress. Our partners respectfully listen to me — sometimes even follow my suggestions.  

As far as being a consultant, the next generation seems to listen more to young “wet behind the ears” consultants with computers, charts and graphs than to my 60 years of farming experience. But I’m slowly swallowing my pride.

They need to listen to those knowing how to run our GPS systems that steer our tractors when planting corn, mowing hay and spraying. But yes, I still question a new agricultural world where we fix a tractor with a computer, not a wrench.

Driving trucks is a great role for retired farmers. It gives you a chance to keep track of the land and crop yields and be a part of the harvest team. Retired farmers certainly are outside investors as they guide farm ownership into the next generation.

As far as puttering in the shop, my wife can’t even get me to fix the sticky door latch. But being retired, you no longer have to feel guilty about not pulling your fair share — on the farm, not at home!

You can be the chief bookkeeper and responsible for putting the money in the bank and managing the checking account. Then let the wife, daughter or daughter-in-law handle the discouraging task of paying bills and payroll.

Enjoy your retirement years. Label all the old photos and put them in albums. Draw up the family genealogy before it’s lost forever. Join the historical society. Become more active in your church and your milk co-op.

Take your grandchildren on vacation with you. There’s a whole, wide, beautiful world out there to be explored. Milk your golden years for all they’re worth.

 

Got a question? Our experts await!

Our Profit Planner panel would like to hear your question. The panel consists of Michael Evanish, farm business consultant and business services manager of Pennsylvania Farm Bureau’s Members’ Service Corp.; Dale Johnson, Extension farm management specialist at University of Maryland; George Mueller, dairy farmer from Clifton Springs, N.Y.; and Glenn Rogers, University of Vermont Extension professor emeritus and ag consultant (unavailable for this question).

Got questions? Send them to Profit Planners, American Agriculturist, 5227B Baltimore Pike, Littlestown, PA 17340. Or email them to [email protected]. All are submitted to our panel without identification.

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like