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Many next-generation farmers that I coach are sick of complaining. They want this year to be the year they FINALLY gain some equity.<\/span><\/p>\n Farmers love carrots, don\u2019t you know? They dangle the proverbial carrot for years in front of the next generation, to keep the young folks guessing about when they\u2019ll become part-owners and have their farm succession dreams turn into reality.<\/span><\/p>\n \u201cThe proverbial carrot that Dad is holding out is really getting me down,\u201d says the young dairy farmer. \u201cHe can\u2019t see our ten years here as commitment. We don\u2019t have the pride of ownership, so my spouse refuses to do any work in the house yard.\u201d<\/span><\/p>\n Yes, farmers love carrots. But they hate to think about letting go of their managerial roles and ownership of the farm. They wear the badge of honor, \u201cI\u2019m a farmer; I\u2019ll never retire\u201d with pride.<\/span><\/p>\n I once saw a newspaper caption that read, \u201cNever too old to work,\u201d over the 80-year-old sheep farmer in the picture. All I could think of was whether he had any successors who are frustrated by dad\u2019s inability to transfer farm ownership?<\/span><\/p>\n My colleague, Bob Tosh of MNP in Saskatoon, is convinced that we advisors need to \u201ceducate farmers on how to retire and let go of the farm.\u201d\u00a0<\/span><\/p>\n This is something I\u2019m happy to help with. Learn more about my farm succession planning services <\/span><\/i>here.<\/span><\/i><\/a><\/p>\n Bob\u2019s insight was also echoed by Don McCannell, another CAFA colleague, who says, \u201cDad\u2019s dream is not necessarily the same dream as the next generation.\u201d<\/span><\/p>\n Curious about exactly what it is millennial farmers might want? <\/span><\/i>Find out here.<\/span><\/i><\/a><\/p>\n So you\u2019re stuck. You\u2019re frozen by your inability to move forward with farm succession planning, and it\u2019s left you and your potential successors frustrated.<\/span><\/p>\n Pulling mucky carrots out of a water-logged garden is hard work. It works much better when conditions are drier. What conditions will get rid of your \u201csomeday the farm will be yours\u201d way of thinking?<\/span><\/p>\n [Tweet “#Farmers: Here are 8 Ways to take action toward #succession planning vs. just talking about it!”]<\/p>\n Reflect on what a great day on the farm really looks like to you.\u00a0<\/span><\/p>\n Remember what it felt like when you were taking over for your parents? Did you forget what it felt like to have a title to land and to be able to negotiate the finances?<\/span><\/p>\n Are you having an identity crisis that is holding you back from moving on to your next role on the farm?\u00a0<\/span><\/p>\n Remember that you are a human being, not a human doing.\u00a0<\/b><\/p>\n What you do for a living does not define your character or who you are as a person. I suspect many farmers have a hard time letting go of their title of \u201cboss\u201d because they don\u2019t know who they would be if they left the farm in charge of the next generation.\u00a0<\/span><\/p>\n Don\u2019t just make your yearly goals into resolutions, act and accomplish those goals!<\/span><\/p>\n You think you\u2019re contributing lots of labor, but the younger laborer at your farm sees things differently\u2014your perception is not their reality. They need to have some equity to leverage their dreams into reality, but you\u2019re stubborn about letting go and don\u2019t want to change the farm business.\u00a0\u00a0<\/span><\/p>\n If you have no farm successor, then start looking for a joint venture partner. Or, take a sabbatical to \u201ctest out\u201d a different lifestyle that\u2019s less taxing on your body.\u00a0<\/span><\/p>\n After all, as Ralph Waldo Emerson said, \u201cYour health is your wealth.\u201d<\/span><\/p>\n Your spouse is waiting for some fun and adventure beyond the farm\u2014before you turn 80. She is tired of being \u201cthe pig in the middle\u201d of handling the successor\u2019s impatience and your pride of power and control. She also understands that you\u2019re a workaholic. In a loving way, she\u2019s trying to tell you that she needs more family time and fun.<\/span><\/p>\n Marriage fitness is essential for farm couples. <\/span><\/i>Here\u2019s how to build a strong relationship.\u00a0<\/span><\/i><\/a><\/p>\n The next generation is also looking for family life because they will not work in the same way.\u00a0 They have new ideas on how to work smart, but your carrot dangling is becoming annoying. They may soon just up and leave in frustration.<\/span><\/p>\n Different dreams from the succeeding generation are being stifled by the carrot dangling in front of them.\u00a0<\/span><\/p>\n They\u2019ve invested 12 years of key energy and labor. They\u2019ve left awesome careers to come back to your business. They\u2019re more than ready to be given some shares or forms of ownership. You don\u2019t need to have this be \u201call or nothing.\u201d\u00a0<\/span><\/p>\n It can be done or transitioned in stages, but start on it now!<\/span><\/p>\n This is the mantra of successful, wealthy business minds.\u00a0<\/span><\/p>\n Call your team of advisors: the accountant, the lawyer, the financial planner, the agrologist, and the communications coach to get the farm succession planning process moving with hard facts.\u00a0<\/span><\/p>\n I was thrilled one summer when some farm folks updated their will that was 17 years old, bought plots, and planned their funeral. They just needed a gentle push to update their estate plans.<\/span><\/p>\n There are programs out there to help you \u201cget rid of your carrots.\u201d\u00a0<\/span><\/p>\n These programs will help cover some of the cost of getting your farm succession plans discussed and put on paper in order to execute them. Younger farmers in some provinces also get a premium of help if they\u2019re under 40, so ASK!<\/span><\/p>\n Many farm folks are scared that they can\u2019t live well off the farm.\u00a0<\/span><\/p>\n They know there are farm perks financially, but they have also neglected to build up non-farm sources of income. They\u2019re counting on the farm to provide resources to live for the next 20 years.\u00a0<\/span><\/p>\n I can refer you to service financial planners who, for a reasonable fee, will help you understand your family\u2019s cost of living needs and income streams. You can also get a rough idea by looking at the last 12 months of bank\/credit union statements.\u00a0<\/span><\/p>\n Fear of future money issues is a key reason why folks don\u2019t retire according to Andrew Allentuck, author of \u201cWhen Can I Retire?\u201d<\/span><\/p>\n The eldest child has put in years of sweat equity to help you create, capture, and grow your wealth, yet they are supposed to wait indefinitely so that you can see what the other siblings sign up for.<\/span><\/p>\n Farm succession planning is a process. It has ongoing changes to be made based on needs, expectations, tax planning, and the willingness to test out new scenarios.\u00a0<\/span><\/p>\n Don\u2019t hold the oldest successor hostage to his or her siblings.\u00a0<\/b><\/p>\n You have a business that needs to be viable, efficient, and profitable. It also needs to respond to the passion and energy of those invested in it. Your successors have invested time and labor.\u00a0<\/span><\/p>\n Your farm is not a pie you can cut into four equal pieces for each child. Get over it!<\/span><\/p>\n Once you\u2019ve looked at your own financial needs and emotional well-being, then you can start the discussion around, \u201cwhat does fairness look like to you?\u201d\u00a0<\/span><\/p>\n Remember, it\u2019s not your responsibility as parents to make all of your children economically equal. Deal with the farming successor fairly.\u00a0<\/span><\/p>\n Here\u2019s more on how to keep farm transitions fair.\u00a0<\/span><\/i><\/a><\/p>\n May every carrot you eat remind you that there\u2019s work to be done. Start talking, and <\/span>get in touch with me<\/span><\/a> about your new scenario that you are building to get rid of the \u201cproverbial carrots\u201d that are rotting on your farm. I can help.\u00a0<\/span><\/p>\n It\u2019s your farm, your family, and your choice.<\/span><\/p>\n If you enjoyed this article and you\u2019d like to dive deeper, don\u2019t miss these posts:<\/span><\/p>\n The Farm Workaholic: 7 Reality Checks and A Subscription to Making Change<\/span><\/a> This article was originally published on June 7, 2016, and has been updated.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Many next-generation farmers that I coach are sick of complaining. They want this year to be the year they FINALLY gain some equity. Farmers love carrots, don\u2019t you know? They dangle the proverbial carrot for years in front of the next generation, to keep the young folks guessing about when they\u2019ll become part-owners and…<\/p>\n","protected":false},"author":2,"featured_media":2040,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[],"tags":[3,112,25,210,353,329,820,359,398],"class_list":["post-2018","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-communication","tag-family","tag-farm","tag-farm-dads","tag-farm-family-discussions","tag-farm-succession","tag-proverbial-carrot","tag-succession-planning","tag-young-farmers"],"yoast_head":"\nHave you thought about farm succession planning?<\/strong><\/h2>\n
8 Ways to Let Go of the Proverbial Carrot and Start Your Farm Succession Planning:<\/strong><\/h2>\n
1. Talk to yourself.<\/span><\/h3>\n
2. Listen to your body\u2019s aches and pains.<\/span><\/h3>\n
3. Decide how much longer you want to be happily married.<\/span><\/h3>\n
4. Different is just different, it\u2019s not necessarily wrong.<\/span><\/h3>\n
5. \u201cDo it now!\u201d<\/span><\/h3>\n
6. Contact your local ag office to find out more about government farm succession programs.<\/span><\/h3>\n
7. Crunch your numbers.<\/span><\/h3>\n
8. Stop treating all your kids the same way.<\/span><\/h3>\n
\nThe Farmland Dilemma: Help! The Siblings Who Don\u2019t Farm are Getting Farmland!<\/span><\/a>
\nEvolving Farm Family Roles<\/span><\/a><\/p>\n