Since immigrating from Holland in 1997, Dirk and Karin Griffioen have continuously expanded their farming operation. Today, on a land base of 400 acres, the dairy milks over 140 cows with a robotic milking system.
Now, after two decades of building, Dirk and Karin are looking to the future and for the best ways to preserve the legacy of their farm while maintaining harmony within the family unit. The couple have four children — Lars, Manita, Lisa and Mike — all with different careers, perspectives and roles within the family farm. Mike, the youngest, has been identified as the primary successor of the farming operation.
“How do we pass this farm on to our son but still treat our other children fairly?” asked Dirk and Karin in the family’s first succession planning meeting. “We’re not sure where to start. We’ve always been adding more buildings or expanding the operation; now that we’re looking to slow down and transition some responsibility, we really don’t have a plan in place for that.”
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This is a common theme among our succession planning clients but what makes the Griffioen family stand out is the level of openness among the family members, their commitment to a plan that ensures fairness, and the use of the farm to create opportunity for all the children, whether they are farming or not.
Where often we see restricted thinking when it comes to succession, and a hesitancy to include others in the discussions, Dirk and Karin made the bold choice to include all their children in the process, regardless of their level of involvement in the farming operation. This allowed us to bring the perspectives of all family members to light and explore unique pathways for succession of the dairy instead of relying on outdated methods such as settling the farm estate purely through will planning or asset division.
Youngest daughter Lisa explains her outlook, “Fairness means something different to each of us. Just because things aren’t equal on paper doesn’t mean that we have not been treated fairly.” This open-minded approach to succession is shared by each of the children and creates a unique path to succession that will benefit individual family members in their own way.
The reality today is that forward-thinking families who can make bold decisions and communicate more openly are better positioning their farms for continued success in the future.
Perhaps the most forward-thinking component of succession planning for the Griffioen family is their timing. The Griffioens are young, with Dirk and Karin still in their 50s and the children between the ages of 20 and 28 years old. As eldest son Lars believes, “So long as the farm is doing well, the family will also do well. However we approach succession, it is important to ensure the viability of the farm remains a priority.”
The Griffioens are doing just that by buying themselves the greatest asset of all, i.e. time.
By starting succession early there are benefits available to all. It opens the door for more financial flexibility by allowing time to effectively fund the family’s equalization strategies without placing a burden on the farm or a particular family member. It also enables the family to investigate opportunities today that will be there when the assistance is needed most.
For the children, opportunity is more significant than value.
“None of us feel entitlement to the farm, but if there is an opportunity that the farm can support, it can make a significant impact at this point in our lives,” says Manita, the eldest daughter, who hopes to start her own farming operation through the equalization process.
Early planning also ensures the farm continues in qualified, capable hands.
“I’m ready and willing to put in the work, but part of me knows I still need Dad’s knowledge and experience for those extraordinary situations that you can’t plan for,” says Mike.
“A slow transition works well for me as long as I have a clear understanding what is expected.”
This early start gives the family time to adjust roles and responsibilities and find the balance that works best for the farm.
Finally, it allows the family to evolve and for Dirk and Karin to discover their identities outside of the farm. “What are we going to do?” asks Karin. “We’ve never really thought about life beyond farming.”
This is a common concern for many farming families, and a gradual relinquishing of responsibility to the next generation gives the transitioning generation the time to adjust at a more comfortable pace.
Without their bold approach to succession, the Griffioens, like many other farm families, would struggle to make progress. By planning early and keeping communication open, the family is taking steps to protect their farming legacy and maintain family harmony.
