December 2024 - 60
BUSINESS
Improve the odds
O
Strategies to enact a successful succession plan
MICHAEL A. COHEN CRPC, CBEC
ur previous articles in this series
explored the four quadrants
of farm succession planning,
including why every operation needs
two distinct succession plans and
the surprising reasons why most
plans fail. In this article, we'll explore
strategies to improve your odds.
We've found that the greatest stress
point in farm succession planning
is communication. Fortunately,
communication strategies can
minimize conflicts and the breakdown
of trust by having a written family
mission and values statement;
a written farm employment,
management and ownership plan and
regularly scheduled meetings.
Family mission
and values statement
The mission and values statement
defines the " why " of your operation.
When developed with the input and
consent of the entire family, this
statement can provide many benefits. A
good policy clarifies your organization's
purpose and goals. It also answers the
questions: Why do you farm? What are
your objectives? How do you define
success? Additionally, it reminds the
family members (and in-laws) what's
important and how the members
should conduct themselves in reaching
common goals. The mission and values
statement also enhances decisionmaking,
particularly when tough
choices elicit differences of opinion, and
improves culture by creating a strong
organizational structure with clear
expectations - and helps the family
work as a team to reach its goals.
A strong written agreement is your
first line of defense against family
conflict providing needed direction
and reassuring family members that
60 | DECEMBER 2024
a given decision isn't capricious,
but in line with the long-established
policy for the operation.
Family employment,
management and
ownership plan
Most farm families we work with
have children on and off the farm.
What happens when an off-farm
child wishes to enter (or re-enter) the
operation? Is there an established
process to follow? Disagreements
between family members on
this issue can fracture family
relationships, sometimes irreparably.
An effective, written employment,
management and ownership policy
should be communicated early and
often and address topics such as:
* How does an off-farm relative
enter the operation? Are there
prerequisites like a set number
of years of educational study
(university or trade school), or
a requirement to be employed
for a specific number of years
elsewhere to gain experience
and perspective?
* Will there be a probationary
period?
* Will the new employee rotate
among different areas of the
operation (field, shop, office
and perhaps the packing shed
or the transportation arm) to
understand the " big picture? "
* What are the expectations for
working hours, compensation,
vacations and benefits?
* What ongoing professional
development will be required?
What is the involvement
with state and national crop
associations?
* What steps are required to
advance to a management
position?
* What is required to become an
equity owner? For example,
some operations require a
pre- or post-nuptial agreement
to be in place to prevent
ownership flowing outside
the family. Others require the
family member to successfully
farm a portion of the operation
before becoming a co-owner of
the entire operation.
When conflict arises over
employment, management or
ownership, the written policies can
reassure the family member and
spouse that this is the policy agreed
to by the entire family, and that
decisions are not personal.
Regularly
scheduled meetings
Many farmers can be described
as " rugged individuals. " Sometimes
that means they don't communicate
as well as they should. We frequently
have younger members of the family
tell us, " We have no idea what Dad's
plans may be! " Sadly, this lack of
communication can dampen the next
generation's enthusiasm and allow
misconceptions and conflict to fester.
Regularly scheduled, mandatory
meetings are a great tool to nip these
issues in the bud. Best practices to
improve your succession plans include:
Weekly operational meetings
These provide an update on what
is happening across the operation,
the tasks and priorities that need
to be addressed this week, and
who is responsible for completing
them. Life gets in the way of a good
plan every day, so resources need
to be allocated to the items that did
not get completed the prior week.
They should also address how farm
labor will be allocated, so different
December 2024
Table of Contents for the Digital Edition of December 2024
Editor’s Letter
Talking Tech
Investing in your plant health
Watermelon tests
From farm to can
Cucumber powerhouse
Maximizing crop yield, sustainability at the Great Lakes EXPO
Introducing the 40 Under 40 Class of 2024
2025 VGN Buyers Guide
Veg Connections
Farm Market & Agritourism
Ag Labor Review
Business
Industry News
Events
Classifieds
Ad Index
December 2024 - 1
December 2024 - 2
December 2024 - 3
December 2024 - Editor’s Letter
December 2024 - 5
December 2024 - Talking Tech
December 2024 - 7
December 2024 - Investing in your plant health
December 2024 - 9
December 2024 - Watermelon tests
December 2024 - 11
December 2024 - 12
December 2024 - 13
December 2024 - From farm to can
December 2024 - 15
December 2024 - 16
December 2024 - 17
December 2024 - Cucumber powerhouse
December 2024 - 19
December 2024 - 20
December 2024 - 21
December 2024 - 22
December 2024 - 23
December 2024 - Maximizing crop yield, sustainability at the Great Lakes EXPO
December 2024 - 25
December 2024 - 26
December 2024 - Introducing the 40 Under 40 Class of 2024
December 2024 - 28
December 2024 - 29
December 2024 - 30
December 2024 - 31
December 2024 - 32
December 2024 - 33
December 2024 - 34
December 2024 - 2025 VGN Buyers Guide
December 2024 - 36
December 2024 - 37
December 2024 - 38
December 2024 - 39
December 2024 - 40
December 2024 - 41
December 2024 - 42
December 2024 - 43
December 2024 - 44
December 2024 - 45
December 2024 - 46
December 2024 - 47
December 2024 - 48
December 2024 - 49
December 2024 - 50
December 2024 - 51
December 2024 - 52
December 2024 - 53
December 2024 - Veg Connections
December 2024 - 55
December 2024 - Farm Market & Agritourism
December 2024 - 57
December 2024 - Ag Labor Review
December 2024 - 59
December 2024 - Business
December 2024 - 61
December 2024 - Industry News
December 2024 - Events
December 2024 - Classifieds
December 2024 - 65
December 2024 - Ad Index
December 2024 - 67
December 2024 - 68
https://www.nxtbook.com/greatamericanmediaservices/VGN/vgn-2025-digital-seed-guide
https://www.nxtbook.com/greatamericanmediaservices/VGN/february-2025
https://www.nxtbook.com/greatamericanmediaservices/VGN/january-2025
https://www.nxtbook.com/greatamericanmediaservices/VGN/buyers-guide-2025
https://www.nxtbook.com/greatamericanmediaservices/VGN/december-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/november-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/september-october-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/july-august-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/may-june-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/april-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/march-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/february-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/vgn-digital-seed-guide-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/january-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/buyers-guide-2024
https://www.nxtbook.com/greatamericanmediaservices/VGN/december-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/november-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/september-october-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/july-august
https://www.nxtbook.com/greatamericanmediaservices/VGN/may-june-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/april-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/march-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/vgn-digital-seed-guide-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/february-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/january-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/december-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/buyers-guide-2023
https://www.nxtbook.com/greatamericanmediaservices/VGN/november-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/september-october-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/august-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/july-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/june-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/may-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/march-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/february-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/seedguide-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/buyersguide-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/january-2022
https://www.nxtbook.com/greatamericanmediaservices/VGN/december-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/november-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/october-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/september-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/august-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/july-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/june-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/may-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/april-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/march-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/february-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/seedguide-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/buyersguide-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/january-2021
https://www.nxtbook.com/greatamericanmediaservices/VGN/december-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/november-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/october-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/september-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/august-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/july-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/june-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/may-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/april-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/march-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/february-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/buyersguide-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/january-2020
https://www.nxtbook.com/greatamericanmediaservices/VGN/december-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/november-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/october-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/september-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/august-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/july-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/june-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/may-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/april-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/march-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/february-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/buyersguide-2019
https://www.nxtbook.com/greatamericanmediaservices/VGN/january-2019
https://www.nxtbookmedia.com