Many next-generation farmers dream of returning to the family operation. But once they arrive, they simply feel stuck, uncertain of when or how they can advance into ownership or management of the family business. Some are too afraid to ask.

Family farm businesses need to develop a career advancement path for employees.

In my last column, I introduced the Taguiri & Davis three-circle graphic of family businesses.

To recap, a family business consists of three separate but potentially overlapping groups of individuals: family members, individuals who own the business, and individuals who contribute management or labor to the business.

Each circle requires its participants to accept certain roles and responsibilities. Some individuals may be in all three circles, while others are only in one or two.

Understand business drivers

In addition to different roles, each circle also has expectations of the business:

Family members will have different expectations based on how many circles they are in. A family member who is an owner, but is not actively involved in the business, will have different goals and expectations for the business than a family member who is employed on the farm.

If all family members are in all three circles, they may be more likely to want the same things for the family business. But as family members begin to separate, conflicts may arise.

Those on the outside of overlapping circles struggle to figure out how to move their career forward in the family business.

Time to advance

It’s important for individuals involved in a family business to know what it takes to move into an overlapping circle and accept new roles and responsibilities.

Here are a few questions that may arise:

So often, many family businesses do not have any of these answers, let alone have them in writing. Have a meeting that includes an honest discussion that ultimately leads to an employment policy and accurate job descriptions for the family business. Also, develop a farm ownership policy to define what it takes to become an owner.

Make a plan

Items such as employment and ownership policies may sound too complicated and not necessary. But in reality, they don’t have to be complex.

A little time spent in open discussions to gather everyone’s thoughts and desires about the future of the farm and the role they wish to play can help develop a plan to meet the needs of both owners and managers. But it takes communication to make it happen. To help get you started, check out the new University of Missouri Extension guide sheet on family roles at muext.us/farmroles.

As families develop a better understanding of each of their own family business circles, keeping roles separate becomes easier and leads to less conflict.

Tucker is a University of Missouri Extension ag business specialist and succession planner. He can be reached at [email protected] or 417-326-4916.