Making plans to support the next generation of Farmers.
Almost all Farmers have intentions to pass the farm on to the next generation, but many fail to make adequate plans to do so. According to the last Census, Canada has 193, 000 farms and about 272,000 Farmers with over 54% of them being age 55 or older. What that means is over the next decade or two these farms will either have to be passed on or sell. Most farmers want to pass on the farm to the next generation. With any business the key to a successful transition is a having a plan, however only about 8% of Farmers in Canada reported having a written succession plan.
Having conversations about money, retirement and death is never easy, but having these conversations is the important first step to a successful transition plan. Lack of communication can cause frustration for the younger generations and confusion about future plans. The sooner the communication starts the better. Even if the children are not sure if they want to be the next generation talking to them about the opportunity may spark their entrepreneurial spirit. It is never to early to start talking about it for Farmers either, it will help formulate a clear path in their mind that can then be put down on paper. Laying out a concrete plan will ensure Farmers and the next generation are on the same page, working towards the same goals.
Creating your viable transition and succession plan can be extremely challenging, but there are some great tools out there to get you started. Here is a link to our resources page where you can find a helpful Farm Transition Guide.