Discussing your farm succession
plan is not the easiest conversation to have with family but it is the most
important conversation you will have.
Deceiving yourself into believing there is nothing to discuss is far
from true. A “pa and ma” farm operation with children involved appears to have
everyone stuck together like glue. For years, everything can run smoothly until
an event like Dad getting sick or passing away occurs. Suddenly the family
faces turmoil like never before, wondering who will call the “shots” now. Mom
has always been Dad’s sidekick. Will she
still be or is the control given to their son or daughter? If there are more children, then that makes
the situation even more complicated. Knowing rather than assuming what will happen
is best decided in advance. A farm succession plan ensures the intentions are
clear to avoid any confusion.
Resources to start the process of
having the discussions and determining the best strategies are the intentions
of this blog. Anytime you are learning
the ropes, you look for true and tested methods. Because everyone’s farm operation is
different and everyone has unique skills, talents and personalities, a “true and tested method” may not work
for you. A specific strategy has to be molded to match your farm family’s objectives.
Let’s be honest, farm succession plans are a “work-in-progress” taking years to
evolve. “Talk can be cheap” when you say you will do something rather than
actually following through with your intention.
Action is a requirement to ensure the farm succession plan succeeds. To
build a successful succession plan, conversations start the process.
Setting the Ground Rules
Setting the ground rules for
productive farm family discussions sounds easy but I know first-hand rules can
get tossed the minute a conversation gets heated. In that moment, emotions flare, thinking is
far from rational, and progress is stalled. The main purpose for scheduling a
family meeting is for everyone to share their own personal agenda. Not only
should everyone bring their agenda but also their listening skills. This meeting
may be the first opportunity everyone has a chance to know what another family
member is thinking or feeling. Hearing
what is being shared, possibly for the first time, may be shocking. You may have not realized your family
harbored these thoughts. Give yourself
time to process what has been shared before responding. Reacting too quickly
may lead to an inappropriate response spurred on by anger. One true and test piece of logic is “always
remember to put brain into gear before engaging mouth."
Seek First to Understand
I admire Elaine Froese for the skills and
talents she has for helping farm families deal with the tough issues
surrounding succession planning. In Elaine’s role as a certified farm family
business coach, she provides valuable resources, one being her latest book, Do The Tough Things Right. Tearing down barriers and building strong communication
skills is the focus of her writing. In
my hunt for resources, this book provides excellent worksheets to help identify
the key issues and challenges facing farm families.
Before having the first meeting, each
family member is encouraged to complete the Key Challenges Audit Sheet designed by Elaine Froese. Although the recommendation is to put an “X”
next to the challenge your family farm business faces, I suggest numbering them
in order of importance. Because everyone sees things differently, numbering the
challenges as Number 1, 2, 3 and so on, determines which issues require the
most attention. As a family, you can then decide the approach. Does ironing the details first on the small
issues build momentum before the big issues are tackled or does energy need to
be first dedicated to the toughest ones?
Another useful tool found at
Elaine Froese’s website is 60 Questions for a Farm Transfer which was developed by The Quebec Farmer’s
Association and FGCAQ. If you are like most
people, you may be unsure what questions to even consider asking. This list
takes away the guess work since the questions covers a variety of related topics
such as the communication plan, development plan for the farm enterprise,
planning for the transfer of farm assets, and a host of others.
Using the Tools
Once the ground rules have been
established and the issues have been identified, you will require some
tools. You may or may not choose to have
a third party present at the meetings.
If you agree to conduct the meeting on your own, you may democratically elect
or appoint a family member to be the chairperson. This person may be the peacemaker
in the family who everyone feels comfortable with and respects.
I especially like Elaine’s methods
of using a “talking stick” and index cards as tools to control the conversation. Elaine explains her methodology in her book, Doing the
Tough Things Right.
“As a coach, I use a “talking stick” - a Beanie Baby®
bull – that family members pass around at random when they wish to speak. The
person holding the bull gets to speak without interruption. This method works
well for drawing out the conversation of the quieter members of the group. I also use Undiscussable™
cards. As I listen to the family or
couple, I write down one word on a bright yellow index card. Words that often come up are trust, fairness,
inheritance, power, control, debt, recognition, conflict style, etc. These
cards then are the personal pack for the family to use as discussion starters
in business meetings around succession or transition planning. It is a way for me to keep track of the key
issues and a way for them to name the main issues that are keeping them stuck.
This sounds much like being in kindergarten with flash cards, but this very
effective tool keeps the conversation focused on the issues and confirms the
issues with new couples on the family team. Then you don’t waste time talking
about the weather.”
Keep the Talks Going
Both listening and talking
through the challenges are the best and only ways to resolve any problems and
concerns. Ignoring the problems doesn’t make them disappear. When repeated disagreements occur,
relationships are strained to the point of breaking. Just like a chain will break with continuous
pressure, so will relationships. Then, the
difficult part is repairing the relationship when extensive damage has been
done. If you think reaching a compromise
about any farm planning decision is difficult, realize that it is also
difficult when a family cannot spend Thanksgiving dinner together. You soon see
that a severed relationship not only affects the immediate generation but the
effects are also felt by the next generation, the grandchildren. You often hear that you can agree to disagree
about farm family decisions. We all have
the option to choose and respect the outcome.
The important part is that we all had the opportunity to contribute to
the outcome.
Main objective
Equipping yourself with
information from various resources is a sure way to become knowledgeable about
succession planning. You can use available worksheets and
techniques as well as other professionals to help guide you through the
process. Unless you schedule a meeting around the kitchen table over a cup of
coffee and cinnamon buns, you cannot know exactly what each person involved is
thinking. Food not only comforts but
fuels the mind. Everyone thinks better on a full stomach. When you sit around that kitchen table, I
believe having an aerial photo of the family farm would be a valuable tool. Whether one person or several people
contributed to the success of this farming empire, it’s beneficial to remember why
the family meeting was called to order.
The main objective is to share in the success of the empire for
generations to come. Harmony is what you are trying to achieve so the family
empire lives on if that is the direction you choose.
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