Passing the Farm to the Next Generation
I am On Your Side®
_________________________________________________________________________
Steve Uhlman | Sponsor Relations Sales Manager
Nationwide Insurance
614-332-4945
[email protected]
While legal structure,
estate documents, business
documents and financial
instruments are all important
to a successful farm
transition plan, this article
focuses on another important
part of the planning
equation: People.
The long term needs of the farm should be your
primary concern. Keeping up with the day-today operation of your farm can sometimes make it
difficult to step back and think about a bigger picture:
your farm’s legacy.
Have you developed a transition plan for when you
retire or when it’s time to pass the farm on? When
family members enter into the equation, planning can
become more complicated.
To date, small business succession planning trends
don’t look good. One study estimates that 70 percent
of family businesses will fail to make it to the next
generation. With 98 percent of all farms owned by
families, the imperative for planning is clear for farm
operators who would like to transition their land and
operation to the next generation.
6 West Virginia Farm Bureau News
Consider this hypothetical
farm situation. Here is the
background:
•
The farm operator is 60
years old
•
He is married to a
supportive wife, a trusted
partner in the farm operation
•
They have four children
– three sons and a daughter
• The oldest son works on the farm. He has always
been expected to help out with the workload
and carries more of it than the other three
children
• A second son who also works on the farm never
finished school and is a bit of a problem child
• The third son went to college, majored in
business administration with a minor in
agricultural science. He is a lot like his dad
which causes relationship problems
• The last child is a daughter. She has a close
relationship with her mom and is the apple of
dad’s eye. She is married and works in town
as an elementary school teacher
• Dad has a preconceived notion the farm should
be operated by the oldest son who spends the
most time working with him