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Farm Succession Plans Almost Always Fail
During my career I have found that most succession plans fail. The plan itself might or might not have achieved the family's objectives for farm succession and transition to the next generation, but it ran out of gas before it was ever completed.
It ran out of gas because there was no one in charge - no one without an axe to grind that is, who was willing to ask the hard questions and push for the answers - so the plans could actually be created and implemented based on good information.
Most succession plans or estate plans or whatever you choose to call them are sold. That is, someone sold you or your folks or whoever is in charge on the idea that planning for the future succession of the farm is a good thing to do and they are just the person to help you do it.
There's certainly nothing wrong with that, often we must be "sold" in order to break the inertia that surrounds us. When we were kids we had to be "sold" on taking a bath, brushing our teeth, and putting our toys away. Nothing really changes - the things we know down deep we really ought to do won't get done unless we're sold on the benefits of doing them right now.
It's just that we we're sold something we either have to stay sold or we'll lapse into whatever "someday it will all work out" frame of mind we feel comfortable in.
For us to stay sold on farm succession and planning we've got to have someone in charge of the process who'll collect the information the advisors require. When no one is in charge the data received, if it ever is, by your advisors will probably be inconsistent and/or inaccurate.
For example I have heard of farmers, not someone like you of course, providing low-ball figures to their estate planning adviser so they'll come up with more favorable figures - for them. Inaccurate data at planning means unpredictable results at settlement time. Not what you really want is it?
And what about our advisers inflicted by the NIH syndrome? If you or your folks have advisors who believe that the last good idea to come along was one of theirs - that ideas "not invented here" are not worth considering - you've got a potential problem on your hands. What if they are not only wrong - they are unwilling to hear your thoughts or those of other advisors?
I have seen this attitude cause fathers and sons to end up on opposite sides of a conflict that was actually created by an advisor so full of their own infallibility that nothing could be done to move the process forward and away from "the way we've always done it."
Farm succession and ownership transition planning is too important to be left to chance, to the prejudices of others, or even to the pulls and pushes of our personal loyalties.
Naturally your professional advisors want to help. They most likely have the competence necessary to help you work through the technical and planning issues - once the personal goals and wishes are clearly identified.
But you advisors need your help too. They need for you to take charge of the process - it's your farm - it's your responsibility - gathering the answers to what's important is your role - by putting somebody in charge. Somebody who'll do the leg work.
That somebody we call the planning coordinator, the person appointed who will make things happen.
When it comes succession and planning the role of the planning coordinator is to act as a sounding board - listening to everyone, and I mean everyone. They must also make sure the word gets through to everyone - whether it's good news or not. They must push for answers to their questions always asking for decisions and actions! And they set and keep the planning schedule - keep the heat on - focus on results.
The good news ...
It does not require any experience to be the planning coordinator - in fact common sense is really all you need.
That and a desire to be part of the solution.
About the Author When Wayne Messick decided it was time to create a version of Passing Down the Farm for the new millennium, he first had to ask and answer three important questions. "In two decades, what's changed, what's stayed the same, and what should we do?" If you are serious about farm succession or if you are a professional involved in farm succession planning, visit Passing Down the Farm to learn more.
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