It can be challenging for a farmer to come up with a proper progression plan that allows for smooth sailing going forward. There are a few key areas that need to be discussed before these plans can come to fruition, though. The following guide is here to help.
Upfront Knowledge
When it comes time to create a succession plan, upfront knowledge is crucial. The farmer will need to decide who the farm is being passed down to and they must also take a closer look at their liquid assets. If the property is going to be sold or contracted, this needs to be considered as well.
What Is The Desired End Result?
Having an objective in mind will allow the farmer to sidestep many of the usual pitfalls that take place during processes such as these. What is the vision for the farm’s future? What steps will need to be taken in order for this plan to come to fruition? Will the farmer want to remain involved with the operation on a less hands-on basis?
These are all questions that need to be answered in full before a successful succession plan can be put into place. This leads directly into the final tip…
Considering All of the Risks
No matter how well the planning stages may go, there are still going to be risks that have to be considered. Are there enough liquid assets on hand for a painless transition to take place? Are there any unresolved issues between family members that could cause strife?
Examining the process inside and out to make sure that there are no unnecessary risks being incurred is arguably the most pivotal step of the process. If there any further questions and concerns, it is in the best interests of all parties involved to enlist a team of professionals.
In order to find out more about the best tips for farm succession planning, please be sure to contact the good people at AgriLegacy today.
