Helping your farmer get ahead on farm transition planning.
Procrastination is the most common obstacle in continuity planning. It's normal human behaviour to put things off when we are uncertain of what we want or of the next steps. We allow urgent to get in the way of important. It’s also easy for our farm clients to focus on being operators, stuck in operations and forgetting about being owners.
What happens when the unexpected happens? We all know the statistics on divorce, dementia, disability and death. But do we know where that would leave our clients if any one of these probable events happened? From middle-aged male farmers, common obstacles to starting the conversation with siblings, parents and children sound like this: "I don't know how to start the conversation about the future."
It's normal to feel overwhelmed with "transition." It's complex with many moving parts. It can feel like we only have one shot to get it right. We don’t need to know exactly what we want to do either. This work involves discussing the most difficult topics. It can be uncomfortable to talk about death, dementia, money, accountability and trust. Let’s work to ease them into it.
How to help the transition
1. Start with the end in mind. It's so important to get an idea of the goal. Then we can work backwards from there. You will want to plant the seed early. Why do the clients do what they do? Give them some space to sit with that question, brainstorm write down the possibilities. Being strategic includes asking hard questions and making them think. There are no right or wrong answers, and no one knows this answer better than they do. You just have to help them dig for it.
2. Don’t tell them, ask them: “What’s at stake?” The biggest risk on farms today is having one person in control of everything, including the knowledge stored in their head. I always have the family answer two questions: “What would be the best outcome if we did this work?” and “What could be the worst outcome if we don’t?” Without having your processes, plans, an up-to-date will or legal agreements in writing, you leave millions of dollars at risk, not to mention relationships. Remind them how important it is to ensure their family is taken care of and that the business is protected.
3. Connect with a coach or facilitator with communication and conflict skills . The benefit is that they can help see a path forward but most importantly hold you to completing those steps. The other benefit is that they will help you navigate the “people side” of the transition. Without a coach, people can become divided. A neutral third party at meetings can keep everyone on the same side, focused on the goal and moving forward, even if holding opposite views.
4. Communicate the right things . We don’t need to tell clients they need more communication — only that we want to focus on the right communication at the right times. We are experts at discussing the day-today, but it’s harder to discuss the uncomfortable things like a living situation or finances. This approach requires asking permission of the others, with a certified coach who can create a communications plan that is followed by the family.
5. Have them set deadlines for milestones and hold them accountable to them. Remind them not to get hung up on the technical side or on having a crystal-clear vision. It will become clear with the more work they put into it. Remind them that this is a living document (not set in stone) that will be reviewed and updated regularly.
Just like having kids, or thinking about retirement, you’ll never know exactly what you want and you’ll never be 100 per cent ready. You do it anyway. Start thinking about what you want (in your head and in your heart). Ask this: "If something happened to you, what would happen to your family and farm? Is that something you could live with?” Encourage them along the way, and count their wins and progress. Remind them that this planning is something only a few farms have done. (One in 12, according to RBC) The choice is yours.
BY DANI RANGER - B.COMM., FEA DANIELLE RANGER CONSULTING
Danielle is a farm coach and a National Director with CAFA. She lives with her husband on the family farm near Leask, Sask. Contact her by phone 306 203-9426 or email danielle@daniellewildfong.com