Sooner or later, every family farm faces the hurdle of transitioning to new ownership and management by the next generation. This can be a highly stressful time for both farmers and their children; nobody wants to damage the legacy of many years’ hard work and dedication, but the huge task of transitioning to a new management style and strategy is littered with challenges and pitfalls. Though this is a stressful time, there’s two tried and true principles that can help support a farm through the changeover:
Transition Gradually
For the vast majority of farms, the transfer can be managed a little at a time. As children grow to young adults, let their responsibilities grow with them. Except in rare instances of a farmer’s unexpected death or devastating injury, it’s almost never a good idea to suddenly drop a huge burden on the unprepared shoulders of the next generation. Build understanding of the land, the operation, the market, and the financial management through thoughtfully planned yearly goals. By the time the older generation is ready to officially step down, the transition of both work and knowledge should already have been primarily completed.
Maintain Clear Boundaries
Transitioning ownership and management of a farm is all too easily a time of conflict. The wisdom and experience of older farmers is critical – but so are the new ideas and modern equipment brought in by the next generation. In a gradual transition, establish a very clear understanding of who has the final say over each piece of the farm, whether it be financial decisions, equipment use, land management, or any other area. Chances are these discussions will never rise again – but if they do, you’ll be glad there was a clear agreement made beforehand.
There is no time more exciting than the transition of the farm to the next generation, but that excitement is often paired with uncertainty and stress. Take heart; every farm in existence either already has or will soon face this situation, and you are not alone! Looking for more in-depth advice and assistance? Contact us. We’d be more than happy to help you maintain your farm’s legacy for the next generation.
