WV Farm Bureau Magazine October 2013 | Page 6

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