Responding to Farm and Family Business Planning and Transition Planning Needs in Oklahoma and Kansas Damona Doye and Larry Sanders Michael Langemeier and Rodney Jones

Past programs in Kansas Business Planning Workshop  3 evening sessions, spread over winter months Delivered 3 times over last 4 years MAST  2 On-campus sessions, 7 distance modules Ag Profitability Conferences  Day long regional workshops that focus on a variety of topics, including introduction to business planning and transition planning

Past programs in Oklahoma Managing for Success – Sanders et al.  4 sessions Time for Change  Series of 3-4 sessions, 3 hours each session Keeping the Family Farming  March-April 2007  Series of 2 Friday, 1p.m. – Saturday, 3 p.m. sessions

Managing for Success in Oklahoma Ag Adapted from previous work by Geoff Benson, NCSU (stolen with permission) The foundation is basic management principles 3-4 day workshop:  fast-paced, interactive, hands-on  teamwork  relevant real-world exercises  very little lecture, multiple presenters from multiple disciplines and multiple levels (county, area, state),  commitment by farm family  Homework requires application to their own farms/ranches

Managing For Success in OK Ag Team composition (6-8 members):  1-3 County Extension Educators where participants located (Ag, FCS, 4-H)  1-3 Area Extension Educators (Econ, AnSci, Plant/Soil/Crops)  1-3 State Extension Educators (Ag Econ)  Part-time staff to assist participating families with records, financial management, other homework (resources permitting)  Partner with or support from local banks, farm groups Evaluations  From participants: excellent; recommend to others; follow up suggests many continue to use process in managing family & farm goals; desire for specialized advanced workshops  Diifficult to get widespread buy-in from county educators (time commitment; requires educators to have attended a 1-day in- service)

Managing For Success in OK Ag DAY 1DAY 2DAY 3DAY 4 Section I. Introduction Section 2. Problem Solving Mission statements Directing What is a problem? StepsStrategic planning Conflict resolution Stress/stress management Decision making Tactical planningOrganizing Time management Section 3. Planning Section 4. Management Communication What is management? Decision making Self awarenessControlling Industry competitiveness Goal settingStaffing/building resource teams Managing change Evaluation

Keeping the Family Farming Des Moines training session, fall 2006 Two joint planning meetings in Enid with county educators, area specialist Marketing and promotion College credit offered

Keeping the Family Farming Finances  $200 per family, up to 4 individuals, 2 sets of materials, $100 each additional participant  RME support  Farm Credit Services for break & meal sponsors Participants Resources

Keeping the Family Farming: Day 1 1:00 p.m.Introductions and overview of program 1:15 p.m.What Matters Most? Identifying Core Values To do: Core Values Matrix 2:30 p.m.Where Do You Stand Financially? Current Financial Evaluation To do: Develop/update inventory list and balance sheet. Complete trends worksheet. 4:30 p.m.Can We All Get Along on the Farm? Communications among the Farm Team To do: Plan, organize and conduct a family business meeting 6:00 p.m.Dinner 6:45 p.m.True Colors

8:00 a.m. Developing a Farm Game Plan: Mission, long-term objectives, and short-term goals for your family business To do: Complete mission, vision statement. Develop written goals for farm, family. 9:45 a.m. Planning for Retirement To do: Complete Income worksheet. Estimate income from farm assets. Estimate family living expenses. Complete My Retirement Fantasy worksheet. Develop pie chart for how time will be spent. 11 a.m.Wants, Needs, Hopes, and Fears To do: Compare notes. 1:00 p.m Evaluating Financial Feasibility To do: Mark up budgets. Apply partial budgeting to an upcoming decision 3:00Wrap up Keeping the Family Farming: Day 2

1:00 p.m. Who’s in Charge? Decision Making Structure To do: Transfer plan timeline. Develop current organizational chart plus one for five years from now 2:00 p.m. Business Entity Buffet: What’s Right for Us? Legal Business Structure To do: Find right business structure advisors 3:30 p.m. Estate Planning To do: Find right estate planning advisors. Review will, trust, estate planning documents 6:00Dinner 7 p.m.Computer Lab Use assorted tools with coaches available: Quicken, budgets, IFFS Meet with IFMAPS staff for individual assistance, if interested Keeping the Family Farming: Day 3

Keeping the Family Farming: Day 4 8:00 a.m. Internal and External Forces (Strengths, Weaknesses, Opportunities, Threats) To do: Complete farm SWOT analysis 10:00 a.m Managing the Family Workforce: Human Resource Evaluation To do: Assess whether employee skills/talents are utilized and whether farm management/labor is sufficient 1 p.m.Do We Have What We Need to Do What We Want? To do: Review farm plan to determine where gaps remain, if any 2:30 p.m. Creating a Succession Plan Timeline/ Putting Your Game Plan into Action 3 p.m.Turn in evaluations and dismiss.

Keeping the Family Farming Workshop Evaluations The contentStrongly Agree Agree 1. Was relevant to my needs.89%11% 2. Was based on credible, up to date information. 67%33% 3. Was well organized.89%11% Follow-up evaluation planned

Keeping the Family Farming Workshop Evaluations I plan to use what I learned in the following ways: Develop transition plan and implement new ways to manage farm. Encourage myself to communicate well. Continue to change. Communicate with family members. It pointed ways for old grandpa to step aside. There is a way to plan to involve a sibling and transfer. Keeping the family functions from family business. To help pass farm to next generation. Communication with in-law family, understanding of land debt load, exploring new enterprises. Meet with parents and start working on things to improve the farm. Make our farm a happier place.

Future Plans - Kansas Additional workshops much like the “Keeping the Family Farming” workshop are being planned RME grant will help support workshops, and additional one-on-one business and transition planning assistance to be provided by the Kansas Farm Analyst Team

Future plans - Oklahoma Keeping the Family Farming  One day follow-up in six months for recent conference participants  Annual or biennial conference offering in state  Overview at annual Extension conference