General Guidelines for Planning Farm Successions
Communication is an important aspect of every plan. Yet, there are different stages by which plans are communicated as a means to ensure their effectiveness. Plans for project delegations are usually communicated once all important phases and stages have been carefully mapped out in order to give a comprehensive and clear direction of the work processes involved.
It is a different matter, though, if the plan involves the transfer of full authority and responsibilities. The communication process should start during the inception of the plan itself. Thus, communicating succession concerns is a key element for the following plan development guidelines:
The Different Values and Goals of the Family Members
The plan should commence with a formal family discussion between all members concerned, particularly those who are being considered as the next in line. It is during this stage that relevant information is established regarding:
(1) family values and goals; in relation to each family member's degree of commitment to preserve their family's legacy.
(2) individual plans, especially those that pertain to the potential successors;
(3) individual needs, particularly the retirement plan of the family heads; and
(4) the business needs and goals of the farm.
It is important for the head of the family and the farming business to impress upon the family members the importance of having an effective and bankable formal plan of succession.
Image Credit: Farmyard has become home to transport, agricultural and road-based.by Jonathan Wilkins/Wikimedia Commons
The Current State of Farming Businesses
Discuss the significance of farm businesses to the development of the community and region in which they thrive. The impact of the farm’s typology since the matter of providing jobs and income-earning opportunities contribute to increasing the earning capacity and buying power of the community dwellers.
The Farm Assets and Liabilities
There should also be a professionally prepared report on how much the family owns and how much it owes. Anticipate that a debt-ridden farm poses a more complex problem, particularly if the potential successors are generally uninterested in exerting the time and effort to improve the estate’s financial conditions.