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Let’s Talk About Who Gets The Farm Before It’s Too Late Suzann Enzian Knight and Katherine Fredette University of New Hampshire Cooperative Extension.

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Presentation on theme: "Let’s Talk About Who Gets The Farm Before It’s Too Late Suzann Enzian Knight and Katherine Fredette University of New Hampshire Cooperative Extension."— Presentation transcript:

1 Let’s Talk About Who Gets The Farm Before It’s Too Late Suzann Enzian Knight and Katherine Fredette University of New Hampshire Cooperative Extension

2 Purpose To work with farm families to reduce the risk of losing the farm due to nonexistent or stalled estate and farm succession planning.

3 Research 70% of farmers have not named a successor 70% expect to semi-retire or retire 45% have had no retirement discussions at all 55% expect to remain in their home Farm business survival depends upon proper estate and farm succession planning, yet

4 Research Findings Transfer planning takes time and formal documentation Delegation to, and training of, a successor critical Communicating goals and values key to outcomes Farmers are considered experiential-social learners

5 Goals of Succession Planning Continuation of the family farm Meet expectations related to the transfer process Control of the farm management decisions formalized Security achieved for both generations

6 Steps to Estate Planning 1.Initiate the discussion 2.Take stock of the present 3.Develop objectives 4.Choose professionals 5.Consider alternatives 6.Review and modify

7 Decision-making in Farm Families

8 But planning doesn’t happen….

9 Background Farm families interviewed and video taped All saw transitioning the farm business as critical to the survival and profitability of the farm All had completed, or were 8-10 years into, the process –3 out of 3, older generation still involved in farm operations –3 out of 3, younger generation currently running the business full time –1 out of 3 had siblings not involved in the farm –2 out of 3 senior generation still owns the land

10 Farm Succession Risk Management Checklist Shared Vision – The Generation Together Preparation by the Senior Generation Preparation by the Next Generation The Family Glue Assess farm succession risk in 4 categories:

11 Interview Questions Farm Family Estate Planning/Farm Succession Interview Questions - What is your name and describe your farm. 1. When did you start to have serious talks with your family about estate planning and transitioning the business? 2. What did you discover? How were you able to have honest and open discussions? 3. How can the farm succession process begin? 4. What was the best time and setting to have these serious discussions? 5. Identify 3 goals you wanted to achieve? What was the outcome? 6. How did things transition from family discussions to legal documentation? 7. What outside resources did you use? 8. What was the biggest hurdle? How did you overcome it? 9. If they were to give one piece of advice, what would it be? 10. How will the older generation be economically sufficient when no longer farming?

12 Shared Vision- The Generation Together Communicate about the future Share an appreciation for farm life Implement steps to perpetuate the farm

13 Preparation by the Senior Generation Formalizing transfer plans Documenting estate plans Communicating to the family “The farm and the family are in a treacherous place if these steps aren’t taken.”

14 Preparation by the Next Generation Capacity – education, skill and experience to maintain or enhance farm operations Interest – let the senior generation know your intention to farm Assure Senior Generation that transfer will be consistent with their personal goals

15 The Family Glue Relationships Goals of each family member Quality of Life Issues

16 familyfarmfinances.org

17 Farm Succession Risk Management Checklist Shared Vision – The Generation Together Preparation by the Senior Generation Preparation by the Next Generation The Family Glue Assess farm succession risk in 4 categories:

18 Workshop Materials Posted on familyfarmfinances.org 6-8 minute vignettes Available for download

19 Publications

20 Results Tools to encourage farmers to begin or to resume the estate planning process Facilitated learning from each other the importance of estate planning and farm succession 24/7 online access to encourage communication around planning and goal setting Incorporated into workshops or used one-on-one for family discussions

21 Other Resources Farm Transfer Network of New England ransferplanning.htm AgTransition – create your transition plan [https://www.agtransitions.umn.edu/PublicPages/Getting Started.aspx] eXtension.org Ag Risk Education Library

22 References Frishkoff (2009) Farm Succession Risk Management Checklist Online, Funded by USDA –  Austin Family Business Program Family and Farm Connections :Communication in the Family (Purdue) downloaded from “Iowa Farmers Business and Transfer Plans” (PM 2074) by Ethan Epley, Michael Duffy and John Baker of the Beginning Farmer Center at Iowa State University. Transferring Your Farm or Ranch to the Next Generation (EB149),  2009 Montana State University Extension Jan Allan "Farmers as learners: evolving identity, disposition and mastery through diverse social practices". Rural Society. FindArticles.com. 12 Mar,

23 Project Team Suzann Enzian Knight, M.O.E., M.S., CFP Family Resource Management Extension Specialist Katherine Bryan Fredette, CFP Extension Program Assistant, Family Resource Management University of New Hampshire Cooperative Extension 308 Pettee Hall, 55 College Road Durham, NH 03824

24 Project Collaborators Michael R Sciabarrasi Extension Specialist, Agricultural Business Management University of New Hampshire Cooperative Extension John Porter Extension Specialist, Emeritus Dairy Bob Parsons Extension Associate Professor Extension Ag Economist, University of Vermont


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