New England Farm Transfer Workshops Michael Sciabarrasi Extension Professor, Agricultural Business Management University of New Hampshire Robert Parsons Extension Professor, Farm Management University of Vermont

Farm Transfer Workshops ReviewSituation Program Description Evaluations Time Frame 2002 through 2007 Prior efforts

Situation Succession critical to future of farming Succession critical to future of farming Aging farm population & retirement High start-up costs & tight profit margins Development pressures Significant changes in estate tax law Significant changes in estate tax law Limited expertise across New England Limited expertise across New England

Program Description Goals Sustain a viable farm business which can support the incoming generation while providing an adequate retirement for the exiting generation Leverage available resources across New England and the Northeast Leverage available resources across New England and the Northeast

Program Description Audiences Older farmers interested in succession planning Younger farmers contemplating farm ownership Industry professionals looking for a better understanding of succession issues

Program Description Delivery Delivery Introductory workshop on farm succession A second workshop targeting specific issues One-on-one visits Support Support Northeast Center for Risk Management Education New England Extension, Land Link Organizations, Others

Program Description Transferring the Farm I Workshop Agenda Getting the Farm Transfer Process Started Transferring the Farm - Tools and Techniques Farm Transfers and Estate Planning New Ideas and Creative Solutions Firsthand Experience New England Wide 5 sites ‘03, 4 sites annually ‘04 –’06, 2 sites ‘07

Program Description Transferring the Farm II Workshop Agenda Retirement Income Needs Medicare/Health Care Planning Farm Transition Process and Business Entities Ingredients of a Business Agreement Case Study New England Wide (2 sites ’04) 3 sites ’05, 2 sites annually ’06 & ‘07

Evaluations Workshops ‘03-07 Participant profile Workshop satisfaction Instructor effectiveness Knowledge level Steps taken Open-ended questions Need help Likely future advisors Follow-up ‘04 Participant profile Participant satisfaction Desired follow-up Steps taken Applied workshop concepts to farm

Participation TTF I 798 participants 458 evaluations 57% TTF II 193 participants 141 evaluations 73%

Participation TTF I TTF II '03'04'05'06'07 ParticipationEvaluations '05'06'07

TTF I Profile Farm owners 72% Own farmland 74% (N=458)

TTF II Profile Farm owners 80% Own farmland 77% (N=141)

Workshop Satisfaction TTF I TTF II 12345MeanScore PercentOverallOrganization 12345MeanScore Scale of 1 (dissatisfied) to 5 (satisfied)

Instructor Effectiveness TTF I 12345MeanScore Getting started Tools & techniques Farm transfer New ideas Farmer panel Percent Scale of 1 (not effective) to 5 (very effective)

Instructor Effectiveness TTF II 12345MeanScore Retirement needs Health care Business structure Business agreements Farm case study Percent Scale of 1 (not effective) to 5 (very effective)

Knowledge Level TTF I PriorPost MeanSDMeanSD Assessment of goals Retirement planning Business transition Estate planning Scale of 1 (low) to 5 (high)

Knowledge Level TTF II PriorPost MeanSDMeanSD Retirement income needs Health care planning Farm business structures Business agreement provisions Scale of 1 (low) to 5 (high)

Steps Taken (Last 5 Years) TTF I TTF II Talked to family about transfer 57%52% Contacted/met ag. professional 3240 Contacted/met service provider 3740 Attended other transfer workshop 3252 Wrote/updated a will 2816 Changed business structure 1314 Developed a business plan 1519 Other49 No steps taken 1111

Need Help TTF I* Specific legal advice 50% Finding needed advisors 43 Specific financial advice 41 Keeping on track to get it done 40 Putting it all together 39 Working through family dynamics 39 Affording expenses to complete transfer plan 35 * Collected in ’06 and ’07 only (N = 102)

Likely Future Advisors TTF I* Attorney62% Tax consultant 50 Estate planner 49 Transfer planning facilitator 36 Dev. rights/cons. easement specialist 32 Financial advisor 31 Farm business management specialist 29 Land use planner 24 Mediator or counselor 19 * Collected in ’06 and ’07 only (N = 102)

Open Ended Questions TTF I Please tell us the most valuable thing you learned… How can we improve this workshop? What are the major obstacles in transferring the farm to the next generation? What would be the most helpful assistance for you to start or complete your farm transfer plan? Suggestions for future topics related to farm transfers…

Open Ended Questions TTF II How can we improve this workshop? What do you plan to do as a result of attending? Additional comments

Follow-up Evaluation Satisfaction Satisfaction with … Mean Score Workshop format 4.7 Presentations4.5 Educational materials 4.6 Location4.6 Scale of 1 (dissatisfied) to 5 (satisfied) (N =32)

Follow-up Evaluation Assistance for Fee TypeYesNoN Advanced workshop 46%54%26 Small group meeting with speaker Farmer-to-farmer group discussions One-on-one visit

Follow-up Evaluation Steps Taken (since prior spring) Talked to family about transfer 62% Contacted/met ag. professional 17 Contacted/met service provider 21 Attended other transfer workshop 17 Wrote/updated a will 24 Changed business structure 7 Developed a business plan 4 Other4 No steps taken 17

Offshoots Individual Assistance Beginning in 2005, follow-up farm visits supported with grant funds to support professional services received The Farm Transfer Network of New England Network of professionals and organizations offering expertise in farm transfer and succession

New England Farm Transfer Workshops Thank You