Now, you want your estate to help the future generation succeed — not create problems or heartache for your family.

But if you want your estate to create a legacy of positivity, you’ll have to proactively communicate your wishes through an estate plan.

Like most people, farmers struggle to talk about estate plans. A recent survey by Investment Planning Counsel indicates that 58 per cent of clients had not talked to their family about their estate.

Communicating about a farm estate plan is even more important because the legacy isn’t just financial. Farm inheritance deals with deep traditions tied to the land and the farm, assets gifted to successors and the tremendous increase over time in farm asset values.

Although there’s no obligation to disclose the contents of your plan during your lifetime, keep in mind that assumptions and worries are born in that knowledge gap (or rather lack of knowledge gap), possibly creating unintended problems for your heirs. It can also help to talk about your estate when everyone is calm and better able to listen to your wishes rather than when they’re dealing with the stress and pain of grief.

Aim for low or no drama. Presenting your estate plan is not about getting attention with a big reveal, setting off squabbles or fueling entitlement. This is an opportunity to create accountability around your wishes, teach the next generation about the importance of financial planning and make sure your family knows how much they mean to you.

People often anticipate that sharing their estate plans will lead to conflicts, so they avoid these discussions altogether. If you believe that discussing your plan could cause more harm than good, ask yourself why you feel that way and think of other ways you can help your family learn to communicate about money and build stronger trusting relationships. Sometimes it helps to have a trusted third party guide you through these tough conversations.

Follow these tips to have better conversations about your farm estate plans:

1. Carefully choose what you want to share. Before starting a difficult conversation, it can help to gather your thoughts and jot down a few notes beforehand. In my consulting career I’ve noticed that sharing estimates instead of specifics is better because financials are always changing when you are alive. For example, you might say, “The plan is for the home farm to be sold, and the proceeds split equally between each of the grandchildren and potentially great-grandchildren.”
   
   On the other hand, details matter when you’re talking about who your executor will be, who will have power of attorney and who is responsible to execute the wishes of your living will. (A living will outlines your instructions and preferences for health care if you’re unable to express them yourself.)

2. Let them know you are prepared. Create a secure document that contains all the important information your executor and/or holder of power of attorney will need to carry out your wishes in the event of incapacitation or death and let them know where you keep it. Information could include:

• Where you keep your will, power of attorney and living will. Is there a secondary will for the farm?
• Name and contact information of your executor, lawyer, financial planner and accountant.
• Farm asset list, which includes parcels of land listed by legal description, common name, whether there is any outstanding debt and whose name they are in. Where do you keep deeds, rental agreements and mortgage agreements?
• A list of off-farm investments, personal insurance and accounts. Include contact information for financial advisors, life insurance broker and banker.
• Funeral plans, such as cemetery plots and any special wishes.
  
  You’ll also want to make sure that all the important players (executor, holder of power of attorney, etc.) know each other and their respective roles. Introduce your executor to your financial planner, lawyer and accountant. This can help each of them better navigate the situation when the time comes. Executors are often paid, so let your family know ahead of time if that’s what you intend to do.
  
  Choose an executor who can communicate regularly with beneficiaries. Your executor does not have to be related but does have to be organized, patient and understand your wishes.For a free template that can help you organize the above, visit farmersbridge.ca and download the Because I Love You list.)

3. Start with the living plan. Share how your financial plan has been set up to take care of you (and your spouse) as you age and how you plan to cover additional costs, such as extra health care, funeral expenses and taxes. Nobody wants to be a burden, but the reality is that many of us will require extra help as we age. This responsibility should not be silently assumed or automatically delegated to the farm successor or the females in the family.
   
   Having these conversations when you’re still healthy minimizes worry or conflict. It also creates a safe time for the family to discuss alternative care solutions and for you to indicate your preferences now rather than have random people reactively decide for you later.

4. Be inclusive and allow room for questions. Set aside specific times to discuss important issues. Whatever you do, do not have it during family get-togethers such as Thanksgiving dinner! One family I know meets once a year to share information — from wills to health care plans to who is hosting family holidays — and then go out for a fun dinner together afterwards.
   
   Adding a formal structure to family meetings can keep discussions focused, smooth and productive. Try to keep them to under an hour and don’t feel that you need to tackle everything at once. You can always book another meeting if it takes the pressure off.
   
   Remember that you’re teaching your family how they can share information and make decisions together when big issues, such as health problems and death, inevitably occur.
   
   And family meetings don’t require everyone to be physically in the room; virtual meetings can work as well. For example, during COVID my mom, who was having health issues, was lonely. My siblings started hosting Dorothy Zoom calls every Sunday at 6 p.m. A few months later, when she was undergoing cancer surgery, these calls became so important to share information about her health care, and, later, palliative care and her final wishes.

5. Introduce your family to trusted professional advisors. To smooth the execution of your plan, let your family meet advisors involved in your estate planning. It can be as simple as inviting your financial planner to your family meeting to explain issues related to your plan. Or invite your insurance agent to explain how life insurance is part of your succession plan or have your farm accountant explain the farm rollover rule and how your estate tax planning has taken advantage of that legislation.
   
   This can be another great opportunity to teach the next generation about money and tax planning! Although the next generation will likely find their own trusted advisors, you are empowering them with additional supportive people and resources.

6. Explain your estate objectives. Hearing the words from your own mouth about what you want to accomplish with your estate gives your benefactors and executor clarity and purpose. Guessing at what someone wants when they are dead is fraught with misguided intentions, even if they are good intentions. This grey area is often where conflicts arise within families. If you are clear up front, you release them from an unwinnable guessing exercise and avoid negative feelings of self-worth or wrongdoing.

The post How to talk about your farm succession plan appeared first on Country Guide.

When 45-year-old grain farmer KR Vreeling was diagnosed with multiple myeloma in 2009, he and his wife, Tammy, realized they needed to expedite their farm transition plan or, at the very least, that they needed a backup plan. With four children still at home on their Manning, Alta., farm this sudden turn of events would be life-altering for everyone, in more ways than one.

Farm succession frequently consists of two common sticking points. The pathway through and the outcome of both hinge on what seems like a never-ending string of decisions.

First, you have to figure out how to do it.

Second, you need to determine what a successful farm transition will look like to you and your family.

As if those two points aren’t headache-inducing enough, imagine that you must also add “expedited timeline” to the list. The situation becomes, as the old saying goes, a whole other kettle of fish.

But that’s exactly where KR and Tammy found themselves in the spring of 2009.

No strangers to big decisions

Something meaningful usually drives a big decision, especially when it comes to family.

For the Vreelings, it’s always been the desire to ensure opportunities for the next generation.

In 1949, KR’s maternal grandparents, the Luikens, and their eleven children emigrated from Holland to Hawk Hills, Alta., a six-hour drive north of Edmonton. They acquired a half section of land through a lottery. To gain title rights they had to clear 40 acres in three years as stipulated by the farm development lease program. In 1953, KR’s paternal grandparents also made the long trip from Holland to settle on a farm near Grand Prairie.

KR’s parents took over the farm in 1967. In 1984, a 21-year-old KR, who was farming with his father and brother, was ready to make his first business decision. He purchased land at a time when it seemed crazy to farm as there wasn’t much money in it, but “you did it anyway because you loved it.” Then, in 1987, KR launched an independent fertilizer company to generate additional income.

Things were looking up. He married Tammy in 1989, and the fertilizer company led to a trucking company. There were trucks on the road 24 hours a day: five anhydrous ammonia trucks, a water truck, a log truck and a propane truck.

But managing a farm, fertilizer and trucking company took its toll. They didn’t have enough time for the work they wanted to devote to the farm, and the trucking company phone would ring constantly, sometimes in the middle of the night. It was time for another big decision.

And so, in 2007, they sold the fertilizer business and by 2009, they had restructured the farm in a way that allowed KR to spend more time with his family and to coach hockey.

The worst news

But then, in the spring of 2009, KR received his diagnosis.

He underwent eight weeks of chemotherapy and radiation to shrink tumours in his back and tailbone. His brother, Doug, helped manage the farm and KR’s son, Michael, was on the farm full time for seeding, spraying and harvest. In August that year KR had a stem cell transplant and spent three weeks at the Cross Cancer Centre.

“It was rough,” says KR.

One day, at a medical appointment, KR mentioned to the nurse that no one had ever given him a prognosis.

“I told her, ‘I have a family and young kids, a business…,” he says. “The nurse said, ‘I will tell you, but you have to decide what you will do with the information.’ The nurse went on to explain that typically this cancer is an ‘old man’s’ cancer and the averages (of survival) is that 50 per cent are gone in five years. That’s scary information for anyone to hear.”

KR was home in time for September harvest, and he was able to sit in the shop for an hour a day. But the shock of what the nurse told him weighed heavy.

KR and Tammy decided it was time to train Michael, 18, how to run the farm within five years.

When, in spring 2010, Michael rolled his ankle, he and KR were forced to switch roles. Michael was in the office and KR was back out in the yard. This turned out to be a blessing in disguise as it provided Michael with a “trial by fire” opportunity to hone his managerial skills.

Five years after KR’s cancer treatment younger son, Ryan, who was in Grade 12, and KR were on a trip to Fairview College where Ryan was working towards his green certificate credits. KR asked him what his plans were for the future. Ryan, who had showed an interest in the farm, replied, “I guess I can’t farm, because Michael is farming.”

“I told him, ‘Why not? The farm is big enough for two. If you want to farm, we will figure it out. There is more than enough farm to make it work’,” says KR.

Michael continued to farm, coming back home for seeding, spraying and harvest, while attending trade school at the Northern Alberta Institute of Technology to receive his journeyman oilfield instrumentation certification. The family thought it would be a good idea to have a fallback career in case farming didn’t work out. Ryan ended up at Olds College and received his diploma in agricultural production.

Meanwhile, the five-year plan had expired, and the family moved on to another round of decisions.

The transition trial

Cancer was always in the back of KR’s mind, so getting the succession plan done was not an issue of when, but how.

The Vreelings attended a session with Elaine Froese, a farm family transition expert, and Jonathan Small, an advisor with MNP at the time. KR also attended Syngenta’s Grower University in London, Ont., so that he could learn how to develop and execute their plan.

KR learned that good advisors ask hard questions. When Small asked “Is this business worth transitioning?” the wind momentarily went out of KR and Tammy’s sails. They were proud of what they had built, but they also understood and appreciated the objectivity of the question.

Small met with each family member and then met with them as a group. After the initial discovery and analysis process, Small told KR and Tammy they should be proud of their kids as they have a strong work ethic and no entitlement issues. KR says that comes from “how we live our life day-to-day more than anything. We tried to teach them the value of money, and hard work. If you want something in this world, you’ve got to work for it. They put hours in, and we paid them.”

When Small put the succession plan on the table KR remembers sitting back and thinking, “Perfect, we’ve accomplished our goal!” He remembers Small asked, “So, when are we going to do this?” to which KR replied, “Well, not today.” Small countered with, “Well, why not today?”

“We’re missing a step. When is it ‘our farm’, when we are partners with our kids?”

– KR Vreeling

KR felt the kids weren’t quite ready and told Small, “It doesn’t feel right to us. On Monday it’s ours and on Friday it’s theirs? We’re missing a step. When is it ‘our farm,’ when we are partners with our kids?”

They decided on a three-year trial, making all partners thirds in the business. “We drew a line in the sand and did an asset valuation on what the farm is worth today,” explains KR. “Then, we’d draw a line again to figure out if there was any growth. If they checked the boxes then we would divide up the growth three ways and execute the succession plan.”

KR had a list of things he wanted to check off before transitioning the business. “The trial was the concession,” says KR. “They needed to show me they could run the farm. Number one was to take over marketing plans, get 1A licenses, and be able to do the books and at the end of the day still be brothers. We stipulated that if you can’t work together, we are not doing this because it isn’t worth it.”

The mechanics of a good decision

If there is anything I took from speaking with KR and Tammy, it’s their approach to decision-making and how they work together as partners to make decisions no matter how hard the situation. They have a process. Their ability to analyze, communicate, decide and move forward is unwavering. They have a quiet confidence — humble yet assured — and follow their values as they step into the unknown.

So, what does a successful family succession and legacy look like? I think it’s an ability to make a series of good decisions as a family — even when it’s hard or the odds are against you — for the long-term success of the family. That’s exactly what the Vreeling family has always done.

KR’s idea of implementing the trial period allowed space to talk about the real issues and to set boundaries. But how do you get people to do the hardest thing on the farm: talk?

Tammy told them “I am the mother and wife, and I do not want to be in the middle. You’ve got to figure out a way to deal with it. If something is going on you need to talk about it, no complaints, and I don’t want to hear it.”

The other stipulation was that no one lives at the shop. It was important to them that when they go home, they leave work at work, creating a respect for the business of farming. “You’re not ‘just’ a farmer. This is a real thing, a real job and a real company,” says KR. “We tried to instill this respect and that it should all be treated with importance.”

The boys have found how to work together. Michael is the visionary, general manager and makes the marketing decisions. Ryan is the integrator, doing the books and developing crop plans. Tammy and KR are still major shareholders, and the family holds an annual general meeting each summer.

KR and Tammy had offered each of their children the opportunity to farm, but Sean and Carter wanted off-farm careers. Though both still help when they can, their parents are proud that the two boys are successful accountants in Peace River.

Ryan and Michael have also started a successful independent ag retailer just as their father did.

Letting go is hard

The challenge of letting go is as real a challenge as figuring out how to structure the handover.

KR says, “I want to drive tractor in the spring because I love seeding and I love combining in the fall. I still want to have value, and I want to see the success of the farm.”

KR and Tammy accept that sometimes you just need to park your pride. As Tammy notes, KR didn’t do everything the same way his dad did either.

“Our boys needed to find their own path,” she says. “As long as you can maintain a relationship with them, some things they have to learn on their own. We had similar complaints as every other farm founder going through this, wondering why wouldn’t they just ask? We could save them so much grief!”

Why didn’t they ask? Tammy and KR know now that it’s because the boys wanted to show them that they could do it. “They didn’t do it on purpose to hurt us; they did it to prove themselves,” says Tammy. “When we look at those boys now, they do things way better than we did.”

Each generational player — the now and the next — must define and redefine their roles.

KR maintains that not working on a succession plan is a selfish thing to do. “Part of the succession plan is that you don’t know how much you are in the way, a limiting factor. Once you move out of the way there’s a youthful enthusiasm that you start to really appreciate.”

He suggests getting started as soon as possible, because “You can’t rush it.”

The post The farm transition trial appeared first on Country Guide.

Kelsey Owen-Cooper is one of those people.

Owen-Cooper grew up in rural Ontario, surrounded by farm influences. Her grandparents grew up on farms, her father worked on a local dairy (frequent visits to his workplace sparked the idea that she wanted to work on a farm someday) and she married into agriculture. 

It was when she was working on her husband’s farm that she realized she loved agriculture and wanted to make it part of her career. So, she headed for Ridgetown Ag College and is now the co-production manager at Cooper’s CSA* where she handles beef and pork processing, sales and marketing.

Alongside farm work she also runs a marketing, content creation and consulting business for agriculture and small businesses. As a creative person she loves using her knowledge and experience — as well as the perspective of someone who didn’t grow up on a farm — to help tell farmers’ stories and bridge the gap between producers and the public.

“It’s been a journey I never could have imagined 10 years ago — and the doors just keep opening,” she says.

As an up-and-comer in Canada’s ag industry — one who is passionate, dedicated and working to ensure the industry’s success and sustainability — I wondered what she thought about her generation’s involvement in agriculture and what they think we should do better.

Danielle Ranger for Country Guide: Today’s workforce includes the most generations ever (five) at one time with millennials in the middle. What unique advantages does that cohort have?

Kelsey Owen-Cooper: Honestly, seeing “millennials” and “unique advantages” in the same sentence is a bit of a trip. Usually, we’re getting roasted for killing industries or eating too much avocado toast. I’m right on that cusp, basically a Gen Z in a millennial’s birth year (call me a zillennial), so my jaded side wants to roll its eyes. 

But the truth is, I think we do bring a lot to the table. We’re wildly adaptable — we’ve lived through more global curveballs than we can count, so shifting gears is basically our baseline operating mode. 

We also grew up as tech was exploding, so we not only understand it, we’re eager to use it, whether that’s modernizing farm practices, improving efficiency or telling our story online. Speaking of which, our social media presence is huge. 

We care about transparency, showing consumers where their food comes from and pushing back against lazy corporate marketing that tries to pin environmental blame on farmers while they skate by. And let’s be real: we’re hilarious. Our dark sense of humor gets us through the chaos of farming and life. 

Plus, we genuinely care. About the environment, about sustainability, about doing better. And we’re not afraid to question the way things have always been done if it means building a stronger future.

DR: What’s one tradition you think needs to be brought back or embraced more than it currently is?

Owen-Cooper: I’ve always sort of linked tradition with getting stuck in the past. But after mulling it over, I realized there’s one “tradition” we could stand to revive in agriculture: the tradition of not totally walling ourselves off from the rest of the world. 

It’s so tempting, isn’t it? In rural life — especially in Canadian ag, where we’re such a tiny slice of the population pie — it’s easy to just hunker down with people who think like us, value the same things and gripe about the same issues. 

And hey, I get it. Sometimes the rest of the world is … a lot. People can suck, especially when their values clash hard with yours. 

But here’s the kicker: for all our talk about city folks being “disconnected”, sometimes we’re the ones who are out of touch. We’re such a small minority, yet we can get weirdly defensive about our way of life instead of inviting others in or learning from them. 

So, if I could champion any tradition, it would be the practice of keeping the door open — of staying curious, connecting beyond our comfort zone and letting fresh perspectives in. Not because we need to abandon our rural roots, but because engaging with the bigger world actually makes us stronger … and a lot less cranky.

DR: What’s one tradition or mindset that needs to die?

Owen-Cooper: One mindset that absolutely needs to die — or at the very least get a serious overhaul — is this idea that the farm has to keep going no matter what, even if it means destroying your family or alienating your workers in the process.

I’d rather sell the farm than sacrifice my relationships. Period. And that’s not me talking with my head stuck somewhere dark. I’ve had some tough, heartfelt conversations with my own family about this. I’ve watched the air go out of them when I say it. Because for them, who’ve poured their entire lives into the farm, the idea that the next generation might just walk away feels like all their pain and sacrifice was for nothing. 

But here’s the thing: that exact mindset is why so many family farms are simmering pots of resentment. It’s the root cause behind family members who can’t stand each other, who bring their bitterness to the dinner table — or worse, project it onto employees. 

I’ve had countless shop talks with friends in ag who all have the same stories, and it’s heartbreaking. In my eyes, if parents and owners prioritized healthy relationships over simply keeping the farm afloat “because it’s been in the family for nine generations”, so many of these problems would solve themselves. I grew up playing sports and captaining teams, and I learned early that when you lift up the people around you — when you care more about them than the scoreboard — the wins come anyway. And not just on the field, but in life. That’s a mindset agriculture desperately needs more of.

*CSA = community supported agriculture

The post The wildly adaptable side of next gen agriculture appeared first on Country Guide.

I have worked in this industry in some capacity for more than two decades and the one constant is that every family farm believes in legacy, the ability to create something that your children want to be a part of after you are gone. For years, that meant farming, acres and lifestyle. Only lately has the definition of legacy slowly changed.

It is no secret that land ownership in agriculture has been the primary driver of wealth and growth over the last decade.

But now, as land prices begin to escalate past the point of profitability, the discussion around legacy and succession has become more complex. How do you balance legacy and family when it comes to the next generation?

The farm legacy

The days of the successor purchasing the farm from his or her parents are long gone. 

The feasibility of purchasing millions of dollars of real estate to start farming is a ceiling no young farmer can break through. This is why the tax changes proposed by the government were, quite honestly, not a large issue for most working in agriculture. You don’t pay tax if you don’t sell.

The succession or transition plan of a multi-million-dollar farm is now a balancing act of retirement funds and estate. A large portion of the wealth accumulation in real estate, and in the operating company, will never be purchased and will be drawn on for retirement up until death. Any other plan would put the next generation in a position where it would not be feasible for the farm in terms of profitability or ability to scale. 

Most operations today survive because they have minimal land payments on multi-generational real estate. If you had to pay rent or interest on every acre you farmed, it would not be sustainable over the long term.

As land values continue their steady climb, farm legacy is being built on wealth through multiple generations — no different than the Rockefellers or the Vanguards. 

Today’s generation is creating equity for future generations to use in business. Future growth depends on old equity and future generations depend on growth. 

It might be a different way to look at it, but succession is no longer at the kitchen table; it’s in the boardrooms.

The family legacy

When we talk about succession, we often talk about fairness and equality for the next generation. But what if the legacy was opportunity not acres? 

Only in agriculture do we believe that our wealth can solely be used to invest in one singular business. But what if I told you that real estate can be mortgaged to invest outside of the farm’s walls? 

For example, purchasing a clinic for your child in veterinary medicine, providing startup capital for an agronomic consulting business for your youngest heir, or even purchasing a portion of an ag-tech company for your technology-centred middle child. 

These are all legacies.

When it comes down to it, outside investment can be a great diversification option to complement farming — better still if it’s a cash-rich business since farmers seem to always have empty wallets.

Smaller operations continue to focus on acres, but even now, with today’s land prices, I believe this is starting to change. Maybe the farm is no longer the best investment for legacy; maybe your children are the legacy.

Regardless of how you feel about farming or your legacy, times are changing and those that adapt will survive. My consulting conversations today are no longer just about farming; they are about return on equity and retirement investments outside of agriculture. 

In fact, most progressive operations today are looking for diversifications outside of the farm due to current violent swings in volatility.

Why should legacy depend only on those who want to work in acres, not hours?

The post What is a farm legacy? appeared first on Country Guide.

The reality is that it takes much longer. 

In a 2017 survey by Business Development Canada (BDC), five out of six entrepreneurs believed that the transition process can be completed in two years or less. Ironically, the survey also found that business succession plans can often take up to a decade to implement. 

That’s because most people think a succession plan is simply a bunch of legal documents signifying change of ownership. 

But it’s much more than a single transaction. 

If you choose to sell the farm you’ll need to plan for taxes, housing, retirement and your estate. 

If there is a next generation to take over the farm business, it gets even more involved. A series of co-created agreements, including everything from compensation, roles and responsibilities, housing, training and even prenuptials or cohabitation agreements, should be drafted.

In conjunction, you will also create a new business plan, estate plan and a retirement plan — all of which need to be communicated to farming and non-farming family members.

Succession is one of the most complex times for a business and family to navigate in a lifetime, so it’s important to give it the extra time and effort it deserves. 

More time often means more choices

When changes are rushed or forced, they tend to be rejected or opposed, and stress levels naturally increase. There is denial and resistance and emotions erupt. 

Succession is a non-linear process. Be prepared for some sidesteps, gaps and evolving relationships from parent-child to business partners. Fortunately, it’s often in these gaps and missteps where I’ve witnessed people learn the greatest lessons, especially that of self-awareness.

Allowing more time to transition through the process can allow for setbacks, stalling and something called “succession fatigue.” Long-time Canadian farm family coach Elaine Froese calls this “getting stuck.” 

A slower succession process can also provide time to build off-farm investments, diversification of enterprises or additional education and experiences. 

The RBC report, Farmers Wanted, identified three skills future farmers are going to need to be successful: technology, business/finance, and people management and leadership. Slowing down the transition of responsibilities can allow the next generation to apply and learn these important skills, before handing them full responsibility and ownership of the business. This period is when the next generation tries new skills and ideas, gathers information and their own support system, builds confidence in their own abilities and learns from their mistakes.  

What the BDC survey didn’t explain was that there is power in this slow, complicated process. By braiding together agreements and plans, the results will be stronger. The next generation will acquire much needed skills and knowledge, and the outgoing generation develops trust in these skills. It also gives everyone time to adapt to and accept these massive changes. 

Eventually, over time, with support and communication, the change is understood and integrated. Remember, too, that staff, non-farming family, advisors and suppliers are affected by your farm’s management and ownership transition, so give everyone space to process and accept the change.

Adjustment period

Too often farmers procrastinate until a big life event forces succession planning action. The amplified emotions during these events are not a healthy environment for making good decisions, for learning or for accepting change. 

There’s value and power in the process of planning for both generations. Good planning requires informing, discussing and collaborating, which takes longer than an individual making decisions alone. Recent research shows these strategic discussions result in more robust, profit-driving decisions and are fertile training ground for future leaders. 

The outgoing generation also needs to learn new things as they shift from doing tasks to training, mentoring and encouraging the next generation on how to do them. 

The outgoing generation needs extra time to work on overall long-term strategies for the business, fitting into their new roles, preparing themselves for a different sort of life and developing new passions. Like a retiring athlete, the exiting generation of farmers see their farm as a key part of their identity and fear a loss of purpose. It’s important for their health and well-being to give them time to adjust.  

Both generations need to understand that change, even positive change, can be difficult and emotional and it takes time to build trust and confidence. Agreed on timelines can be helpful guidelines for the transition of skills and allow for the whole family to emotionally accept the change.

Instead of cramming in succession plans, take the time to build a smoother transition. It will be time well spent.

Timelines are guidelines

To help get your head around and guide this complicated time of change write out a transition timeline. 

The outgoing generation can start with a line from their current age up until 85 years old, the average age of death in Canada. Mark down important points, for example, when you turn 60 and 65 or when you no longer want to milk cows or be responsible for grain marketing. Make sure you include other key personal events, such as when your spouse is retiring.

The next generation should draw a similar lifeline from their current age to 65 years old, marking down key events and indicating any debt payment due dates. 

Take a moment together to compare the two timelines — and make sure to do it in pencil. There are no guarantees about absolute dates. This is simply a way to think about your dreams in terms of our most limited resource: our time on this earth. 

The future awaits.

The post Can slowing down farm succession really work? appeared first on Country Guide.

But figuring out how to share it with siblings and cousins who want to be part of the business? That can get tricky. Especially if the farm is only so big and growth is limited.

“Every farm and family dynamic is different, and the more people involved, the more important it is to ensure every person, no matter the generation, has a voice in the discussion about the farm’s future,” says Darrell Wade, founder of Farm Life Financial Planning Group and farm succession specialist. He explains that in the case of transitioning a farm business with real or perceived restricted growth opportunities, such as a farm operating under the supply management system that relies on quota or a location that prevents expansion, discussions can get sticky.

But that shouldn’t limit the development of a succession plan that can work for everyone.

Wade sat down with Country Guide to weigh in on some recommended strategies to, what some might call, a sticky succession situation. He answers some common questions that arise in these circumstances and says that the advice applies to everyone on the family farm — no matter their role or generation.

Country Guide: What advice do you have for farm families navigating succession when there aren’t many options for growth?

Darrell Wade: Before we start discussions about farm ownership — including the future, current limitations and everyone’s role — we need to make sure every generation, and everyone interested in the farm business, has a voice. By aligning everyone with a vision, values and goals for the next generation we can start navigating the family business decision-making process together. 

The next thing we need to do early in the process, especially in this situation when we know the farm needs more revenue, profit or cash flow, is to support the individuals or families in the business in conducting meetings with purpose. Ideally, a farm would already host an annual business planning meeting that would have identified this succession situation as a challenge or hurdle.

Only then, once everyone feels confident that their voice will be heard and everyone is willing to work collaboratively and respectfully, can the family begin to conduct farm business planning sessions. The goal of these meetings should be to identify new opportunities that could support the farm’s growth, increased revenue, diversification or whatever is necessary to support the future succession of the family farm.

Then, it’s the responsibility of the next generation to identify which, if any, of these ideas can become an opportunity that the farm should explore or attempt. It’s also their responsibility to develop a business plan that identifies details, such as the capital required, level of risk involved, financial requirements, individual responsibilities and return on investment.

By empowering the incoming generation to come to the meeting with a business plan that quantifies these ideas and opportunities, farm families can have more meaningful discussions to determine the next plan or business venture that makes the most sense for the farm to invest in to support multiple family members.

If growth really isn’t an option, I advise farm families to take an inventory of the resources they currently have to find ways to utilize and maximize what is already available. This could include resources that could help cover expenses, or an option to make the buy-in easier by holding debt, like a promissory note with no interest.

Remember, every family and farm situation is different. The ability to conduct respectful and meaningful conversations and meetings, combined with ingenuity, could uncover untapped opportunities for the farm’s future, so don’t be afraid to get creative.

CG: Are there ways a farm can support family members beyond money or financial compensation?

Wade: Absolutely. Non-monetary compensation can be a valuable tool in any transition situation, and especially helpful if income or growth is limited. In some cases, families can provide living expenses, such as a home, vehicle, fuel or insurance. Others may measure “sweat equity” from the time the next generation was involved in a management role until they enter the ownership and equate this to a portion of the farm equity being transitioned. Again, these are all tools that can be discussed during business planning meetings to determine the best fit for the farm and family members.

CG: What can farm families do to keep relationships strong before they even start talking about succession?

Wade: Too often people make assumptions. These can range from anything like believing the farm can’t grow or support multiple family members to an opinion about someone’s skills and capabilities. Assumptions can be dangerous, that’s why open, honest and respectful communication must be at the core of every farm succession discussion.

I encourage farm families to start by defining clear roles and responsibilities. These should be based on their skills, experience and interests and documented to avoid confusion or assumptions. Consider rotating or reviewing roles periodically to accommodate changing abilities and interests and use tools to track tasks and ensure accountability. 

Transparency in finances and decision making is also essential. Keep clear financial records that everyone who should have access can review. Don’t forget to include non-financial benefits, such as living expenses, and individual contributions such as financial and sweat equity. A clear decision-making process should also be established and followed.

Regular family meetings are important for open communication. I recommend setting ground rules to ensure everyone is heard and respected. Families should also consider building in conflict resolution mechanisms and engaging a neutral facilitator, like a farm consultant, for contentious discussions to maintain fairness and focus.

There are plenty of other tools and practical tips for families that can help foster healthy, productive relationships and increase the success of the succession. I challenge families to approach farm succession with the goal that they will all want to still sit down and enjoy Christmas dinner together throughout the process and when the farm succession is finally complete.

The post When it looks like there aren’t many options for farm growth what’s a growing family to do? appeared first on Country Guide.

It’s not just about the land. It’s also about the family name, the farm’s story, the values and the impact that continue long after the current owner has stepped away from the day-to-day. For most farm leaders there comes a time when the question arises: What happens to the operation after me?

One of the hardest transitions for farm leaders is learning to release control, not in a passive way, but in an intentional, healthy way. 

When you’ve built something with your own two hands, poured your energy and heart into it, it’s only natural to want to hold on tight.

• RELATED: How to be the best leader for your farm

But legacy leadership invites you to trust, not just in the people around you, but in the work you’ve already done.

Legacy leadership doesn’t happen by accident. It happens through clarity, planning and communication. When you lead with vision, you create space for the next generation to rise — not in your shadow, but alongside your example.

Legacy leadership requires you to step into a new level of leadership, one that is guided more by empowerment than management. Empowerment comes from a belief in your worth as a person and trusting yourself to be the leader you need to be. This is where many leaders get stuck. They believe the problem is that their family is not ready or that the circumstances on the farm are not right.

The deeper truth is that most of the resistance lives within the leader themself. But you don’t need to push harder — you need to lead differently. 

When working with clients, I like to use horizontal leadership tools and a framework of empowerment. (Horizontal leadership is a style of leadership that focuses on empowering and engaging all members of a team, rather than relying solely on a hierarchical top-down approach.) These approaches help ag leaders simplify what matters, release what doesn’t and communicate what’s most important. 

When you lead from this empowered mindset, you stop micromanaging and start mentoring. 

You stop overworking and start owning your time and energy. 

You stop worrying about the future and start shaping it intentionally.

Passing the torch is a process

I love working with leaders who are ready to think bigger, not just about their business, but about the impact they want to leave behind. Through coaching and courses, we work through the core challenges of horizontal leadership: fear, trust, curiosity and vision.

Leadership isn’t about having all the answers. It’s about asking the right questions, communicating with clarity and learning to see yourself and your people through a newly empowered lens.

If you want to lead a farm that lasts — emotionally, financially and relationally — it starts with how you show up today.

Here’s how you can prepare your farm — and your leadership — for the next generation:

1. Clarify your legacy vision
   • Have I defined what “legacy” means to me personally and professionally?
   • Can I clearly articulate what I hope this farm looks like in 10, 20, 50 years?
   • Have I written down the values I want to pass on, not just the assets?
2. Audit current leadership and decision-making
   • Do I currently make most of the key decisions myself?
   • Are there opportunities to delegate or mentor others to take the lead?
   • Do I trust others to make mistakes and learn from them?
3. Start conversations that matter
   • Have I had open, honest conversations with my spouse, children or successors about the future?
   • Have I asked what they want, not just assumed?
   • Do I encourage input even if it challenges my own vision?
4. Define the transition plan
   • Do I have a clear timeline for gradually stepping back or shifting roles?
   • Have I created written plans for operational, financial and ownership transitions?
   • Have I identified mentors or professionals (accountants, coaches, advisors) to support the process?
5. Prioritize personal growth
   • Am I doing the mindset work to let go of control and lead from trust?
   • Have I worked with a coach to process fears, guilt or uncertainty about transition?
   • Am I making space for curiosity, learning and self-reflection?
6. Create a legacy culture
   • Does my current team/family feel empowered and included in decisions?
   • Is feedback welcomed and communication healthy?
   • Am I modeling the kind of leadership I want to see carried forward?
7. Make it official
   • Have I updated legal documents (wills, business agreements, powers of attorney)?
   • Is there a written succession plan and has it been shared with key people?
   • Are we reviewing this plan yearly and updating as needed?

Your legacy is more than your land. It’s your mindset.

You can download a free Legacy Planning Checklist to help you begin the process of preparing your operation — and yourself — for a future beyond your leadership. It’s never too early to start and it’s never too late to lead differently.

The post VIDEO: Building a farm that outlasts you appeared first on Country Guide.

Are you the child who knows more about what your parents have written in their wills? Are you worried that you’ll be the one left to explain your parents’ wishes to your siblings after your parents have died?

If you want to avoid being the bearer of bad news, Patti Durand walks us through what you might say to your parents during this type of awkward conversation in this week’s episode of AwkwardAg.

Do you have an awkward conversation you need help with? Let us know in the comments or send an email to astewart@farmmedia.com and Patti can provide some prompts, tips and script ideas.

Download a free script to help you speak to your parents about sharing the contents of their wills here: www.thefutureleader.ca/scripts

Click on the links below to watch more videos in the Awkward Ag series:

Is your parents’ accountant the best fit for the farm?

Sharing your final wishes with family

Responding to advice, whether you wanted it or not

Managing ‘not-so-good’ vibrations

Trying to find work-life balance on the farm

How to ask for a raise on the farm

Taking awkwardness out of farm family discussions

The post VIDEO: Sharing your final wishes with family appeared first on Country Guide.

They are the backbone of our national food security and rural economic infrastructure. They are also living legacies, passed down through families with pride, hard work and an intimate connection to the land. 

The transformation of Canadian agriculture over the past few decades has been revolutionary. Farms that once relied primarily on manual labour and traditional knowledge now operate with GPS-guided machinery, drone technology and data analytics. This shift has dramatically changed how farms operate, creating both exciting opportunities and complex challenges for farmers in terms of levels of capital investment required and the ability for knowledge to transfer between generations.

And with forty per cent of Canadian farmers set to retire over the next ten years, engaging the next generation in the industry isn’t just important, it’s imperative for modernizing and sustaining our agricultural sector. 

Young farmers embody entrepreneurial risk-taking, often bringing fresh perspectives and embracing new technologies and sustainable practices. By creating the right incentive structures that position farming as a strong entrepreneurial and innovation-rich venture, we can retain and attract the next generation of smart young farmers who are eager to apply their drive to advancing agricultural practices.

As CEO of Farm Business Consultants, a national network of accounting and tax specialists, I’ve seen firsthand how the evolving landscape of Canadian agriculture — from recent tax changes to advancing technology requirements and increasing capital demands — have transformed farm succession planning.

Young farmers play a key role in navigating these challenges. Their knack for embracing modern farming methods can boost productivity and help us make the most of our farmland in a sustainable way. This approach is vital for maintaining food security over the long term and maintaining independence in the decisions we make regarding our food production.

Planning matters

Today’s farmers face a complex and unforgiving economic reality. They are asset-rich, but cash flow challenged and managing operations that can require millions of dollars in capital investment just to remain competitive.

The financial pressures on modern farmers are multifaceted. They must contend with the high costs of land, equipment and infrastructure while navigating the challenges of rising operational expenses, carbon taxes and fluctuating fuel costs. 

Additionally, technological advancements in precision agriculture, while promising increased efficiency, demand substantial upfront investment. These cutting-edge tools and data-driven strategies are no longer optional luxuries but essential components for staying competitive in a rapidly evolving agricultural marketplace.

Land prices have skyrocketed, with some prime agricultural areas seeing values increase by over 300 per cent in the last two decades. For many farm families, their land represents their most valuable asset — but it’s also the hardest to divide or transfer without facing significant tax liabilities.

All of this means that it’s important to consider several factors as farms plan for the future of their businesses.

More than just numbers

Succession planning isn’t only a financial exercise, it’s also about preserving family values, maintaining operational continuity and ensuring the next generation has both the tools and the opportunity to continue a proud agricultural tradition.

Family dynamics play a vital role. Open, transparent communication about expectations, capabilities and long-term vision becomes as important as any financial strategy. The most successful transitions I’ve witnessed are those where families approach the process with mutual respect, clear communication and a shared commitment to the farm’s future.

Additionally, succession planning should consider the broader community impact. Farms are often central to rural communities, providing employment and supporting local economies. A well-executed succession plan can ensure that these community benefits continue for generations to come.

When succession planning begins years before the intended transition families can successfully navigate complex tax situations, gradually transfer operational control and even expand their operations during the transition. Success stories all have one thing in common: they started early.

In contrast, reactive planning severely limits options, forces important decisions under pressure, often leads to higher tax implications and misses opportunities for strategic restructuring. Without proper planning, we’re seeing more families forced to sell to corporate entities or foreign investors, a trend that deeply concerns me as someone committed to preserving Canada’s agricultural heritage and diversity.

The difference between proactive and reactive succession planning could not be more dramatic. Proactive planning opens doors for thoughtful structuring, maximizes tax efficiencies, preserves operational stability and often has far more chance of successfully maintaining family harmony.

Charting a sustainable future

Based on my years of experience, successful succession planning hinges on several critical considerations which I believe farmers and the industry should prioritize:

• Engage early: Begin the succession planning process years in advance to optimize operational structures and maximize tax benefits.
• Strategize with tax planning: Stay informed about potential tax changes and prepare for various scenarios to minimize tax burdens during the transition.
• Evaluate operational structures: Regularly review ownership structures to identify the unique benefits they offer and align them with long-term succession goals.
• Build financial resilience: Diversify income streams, accumulate cash reserves, and consider innovative funding models, such as community-supported agriculture or local business partnerships, to secure long-term sustainability.

It’s also important to consider the human element in any succession planning conversation. This includes identifying and nurturing the next generation of farm leaders, whether they’re family members or not. Successful transitions often involve a gradual transfer of knowledge and responsibility, allowing younger generations to gain experience while the older generation can still provide guidance.

A succession plan isn’t just about retirement. It’s about preserving a legacy of Canadian agriculture that deserves to continue.

The challenges are significant, but they are challenges we can tackle. Remember, every farm’s situation is unique. There’s no one-size-fits-all solution. But the principles of early planning, strategic thinking and open communication apply universally. 

Don’t wait until retirement is imminent. The most valuable gift that anyone can give their family’s agricultural legacy is starting this process now while options remain open and the most beneficial strategies can be implemented effectively.

– Yves Millette is CEO of Farm Business Consultants (FBC), a national network of accounting and tax specialists.

The post Sell the farm or save the family legacy? appeared first on Country Guide.

For Belmont, Manitoba first-generation farmers Lydia Carpenter and her husband Wian Prinsloo, it’s that type of unlimited, outside-the-box thinking that has become their regular way of thinking. Over the years, they’ve leveraged multiple income streams, a direct-to-consumer marketing beef business, unconventional loans and land rental arrangements, and unique payback agreements.

They were among the first to demonstrate that land acquisition is not the only way to determine a farm business’s worth. And in another 10 years, they will likely complete a farm transition, but from a family they’re not related to at all.

You might remember them from previous issues. Country Guide has followed Carpenter and Prinsloo on and off for the last decade and since Luna Field Farm has changed considerably over the last five years, we thought it was a good time to connect and catch up.

They continue to raise and direct market between 60 and 100 weanling pigs and manage a few hundred laying hens. Since we last heard from the couple, they said goodbye to their 300 sheep and 1,000 broilers in 2018 and 2019, respectively.

• RELATED: Following the farming dream

Today, their client base is a solid mixture of urban and rural. Beyond Winnipeg and Brandon, they make weekly beef deliveries to Winkler, Morden, Killarney, Boissevain, Pelican Lake, Ninette, Shilo and Wawanesa. Some customers even travel from northern Ontario to seek out their farm’s products.

The initial 80 acres of rented land that Carpenter and Prinsloo managed has morphed into a half-section of deeded land and an additional rented section from another entity. Their 120 Luing breed cattle are co-run with neighbour and mentor Iain Aitken. “We’re not large scale, but we’re not small anymore for sure,” says Carpenter.

They weathered COVID-19 and came out bigger, better and with a stronger conviction to be a tortoise and not a hare in their slow-and-steady journey toward achieving their goals. The pandemic changed some people’s eating habits and food awareness, driving Luna Field beef sales ever upwards and teaching Carpenter and Prinsloo to play the long game even more than they already were.

Evolving transition

Iain Aitken and his wife Rowena bought nine quarters when they moved to Manitoba from Alberta in 2015. He sold the first quarter of land to Carpenter and Prinsloo in 2017, followed by a second in 2023. Both quarters were sold to Carpenter and Prinsloo for what the Aitkens paid for them in 2015.

“It was my way of giving them a kind of foot up because the real estate evaluation is an ongoing thing,” said Aitken, 58. “Land has gone up, certainly.”

They all share a similar philosophy of systems agriculture and a belief that “unconventional” can be as good, if not better, than conventional. The couple say they are lucky to be where they are and to know Aitken.

Aitken counts himself lucky, as well, especially in today’s farm business climate. It didn’t take long for him to see that the couple could be a viable option to continue his Luing cattle business after he retires. He plans to fully transition his business to the couple by about 2036.

“They’re very knowledgeable and I’ve increasingly seen more of that as I’ve spent more time with them,” says Aitken. “They’re very outside-the-box thinkers. We certainly have very similar values in terms of land management and just the way we do things. We’re very much like-minded in that aspect. They’re the best prospects I’ve ever encountered.”

The young couple understand that this isn’t simply a succession. It’s two healthy, thriving businesses that will, assumedly, become one in time.

“We have run a profitable farm for many years which is one reason that this transition is working and why we decided to work together,” says Carpenter. “Over time, we are purchasing assets from the Aitkens to bring into and grow our business. A key component of our success is that we built the business first, and then we were given the opportunity to build equity in land and cattle [payments we were able to cash flow from the business] and work with Iain.”

The land Aitken sold to Carpenter and Prinsloo provided the security the couple needed to invest in infrastructure and stay in business.

“We needed an opportunity as we needed security and Aitken provided that,” Carpenter says. “We are building equity that will give us additional borrowing power that will serve the transition moving forward as we will be able to cash-flow additional asset transfer. We are moving in a direction that feels good, and we have the security … about the business we have grown and are growing, and the working relationship we have with Aitken. Not everybody gets this opportunity and I think that being able to engage in a farm transition with someone that’s not even your family is a real opportunity.

“I think we all have achieved a greater sense of clarity in terms of what’s going to happen in future or what we want to happen in future.”

Opportunity cost

The couple cautions that as with everything in life, there’s no free lunch. An opportunity will always have a catch, so think it through. Don’t let a Trojan horse into your farmyard.

“Some things will present as an opportunity but they’re not. It might be there, but it’s usually hidden under a bunch of work,” Carpenter says.

For example, Carpenter and Prinsloo had an opportunity to buy neighbouring acreage, but they turned it down. The cost of the opportunity was too high. It’s not always purely about the numbers.

“What is the real cost of that? The real cost might be family time. When you sense that there’s an opportunity, really explore what it is. That’s not just a financial question,” Carpenter says. “We have been really consistent in our business, and I think that part of that consistency is because we have created some limits around what we can’t do.”

They’ve accepted the fact that they cannot say yes to everything. Sometimes a door must close, and that’s okay, as was the case with their sheep and broilers. It provided an opportunity to focus on building their cattle numbers, professional development, and spending more time with their son.

Without an inter-generational backstop, which most farm families have, this wide-open decision-making has helped them develop a resilience all their own.

For Prinsloo, the cliché of “one day at a time” epitomizes his family. They knew years ago that this is where they wanted to be, so they kept working away at their goal, determined to achieve it and not be distracted by the proverbial shiny objects along the way.

“The overarching theme is incremental progress towards our goals and establish ourselves a bit more to own a bit more land,” he says of their increasingly clear vision. “There are some people that believe in continued expansion forever, but that’s certainly not the case for us. We’re about refining value, finding efficiencies and doing more with less. One of our goals is definitely to stay nimble and adaptable.”

Prinsloo underscores the paramount need to stay open to change. If not, he says, prepare to be steamrolled by the economy, especially regarding production practices.

“I don’t know how a young person would succeed now without being open to change. That’s what coming from outside of agriculture has given us. I think that naïveté opens you up to possibility.”

Considering the family is working through a true rarity — a business transition of a non-family member — it’s clear their naïveté is a strength, not a weakness.

The post An evolving vision appeared first on Country Guide.