As farmers, we face daily struggles. Family farms looking to transition from one generation to the next, face even greater challenges.
When the children of the family are young, it’s easy to put off future planning. When they enter the teenage years, their contribution is great and this is, quite possibly, the most productive time for a farm family. As young people contemplate their future and the obvious need to make a living, there’s a fair degree of uncertainty.
So many young farmers leave the farm at this stage and never make their way back. This is definitely the time to invest in some serious discussion as well as realistic financial planning. Here are some helpful tips and starting points to take into that conversation:
- Considering the farm’s current financial situation, how much yearly income can each party expect to see?
- What are each party’s future expectations?
- What financial needs does everyone have and how will those be met?
- How long does the older generation expect to continue to materially contribute their time and labor?
- When do they anticipate retiring and what role do they expect to assume after retirement?
- Which duties will everyone have as the transition occurs?
- Is satisfactory housing in place or is there a plan to make that happen?
- What are our goals for the operation?
- How will we handle differences of opinion?
- What happens if there isn’t enough money?
- Do we have alternative plans for income?
Keeping an open and honest dialogue right from the start is important. Knowing what all involved are thinking, dreaming, and hoping is an excellent way of avoiding future disappointment.
There’s incredible potential for years of great times ahead. Effective planning at the onset of a new partnership, will help to make sure that those times are fruitful for everyone. Our goal here at AgriLegacy is to help you ensure the future in the most efficient way possible.
