Farm succession planning may not be considered the most exciting aspect of farm business operations. Transition planning is crucial for the long-term sustainability of a family operation, according to Mike Downey, farm business consultant with UnCommon Farms and farm succession expert.
Farm succession planning is about maintaining the farm’s legacy rather than just dividing assets, said Downey in an exclusive interview. How that looks can depend on the family and type of operation. Farmers are living longer and working later in life due to technological advances, which can delay the need for succession planning. One of the biggest challenges is ensuring the next generation is ready to take over.
“Succession planning is a lot more than just transferring assets,” he said. “It’s transferring the management, the leadership."
Intentionality and forward thinking are critical for establishing goals or a vision for a legacy and how it translates into core values for the next generation. Oftentimes, three or four generations reside on family farms, allowing the opportunity to delegate roles and responsibilities that complement different personalities and communication styles.
Outside of the family, having other advisors becomes essential for a family going through the transition-planning process. Finding capable non-family teammates helps smooth the process, but finding someone with the family’s best interests in mind can be challenging.
“That's another issue in itself... we need to find more capable attorneys and CPAs coming back into the rural areas,” said Downey. “I think what's important is that we have a good team of advisors around us now. We're not trying to just go at it alone."
Downey’s role as a farm business consultant involves being the “quarterback” to help lay the groundwork, coordinate various moving parts, and ensure they align with the family’s goals.
In the long run, succession planning allows the family farm’s legacy to continue. Farmers can secure their farm’s future for generations to come with proper guidance.
Watch the full interview: Farm Succession and Transition Planning with Mike Downey
For more resources, visit uncommonfarms.com or nextgenag.us.