Tim Schaefer, the founder of Encore Consultants, says succession planning doesn’t have to be complicated and that there are not enough structured discussions happening on farms that talk about passing the farm onto the next generation.
“The longer this goes on, where we’re not talking about these deep and important issues, it becomes more and more uncomfortable to even start,” Schaefer recently told AgriTalk host, Chip Flory.
Schaefer shared that the 2017 USDA Census Report documented that 99% of all farms in the U.S. are operated by families, but less than a third have a succession transition plan in place.
The conversation about how the farming business is going to be transitioned from an established generation to the next generation is a conversation these families cannot afford to put off for another day.
“Nobody takes the farm to the grave with them,” Schaefer stated, adding that the first step to get a plan in place is to get owners and next generation farmers together in a room to talk about what the farm hopes to accomplish.
“What do we want for the future of this farm? Where are we strong? Where are we weak?” Schaefer asks. “Farms are constantly changing and they’re changing just right alongside the family and dynamics as well. So, it starts by having those detailed conversations but then also agreeing. Ultimately, you have to agree on a process. What process are we going to follow in this transition plan?”
While farms have changed considerably over the last decade, the next decade will likely see even more change, and Shaefer states that having those early discussions and writing goals and hopes down helps build a roadmap for the future.
“We so often take the people that we love -- our family, and key employees -- for granted more than what we should,” Schaefer says, sharing that talking about succession transaction is emotional as the senior generation feels like the succession isn’t just about the farm, but about their legacy.
Farmers work too darn hard to leave the succession plan of their family farm up to fate. To listen to the entire conversation with Tim Schaefer, dairy editorial director, Karen Bohnert and AgriTalk host, Chip Flory, click on AgriTalk-3-19-24-Tim Schaefer - AgriTalk - Omny.fm
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