Many farm families don’t know what to do when it’s time to transfer their agricultural operation to the next generation, not realizing that succession is a process rather than a one-time event.
Surveys show that only 55% of Canadians have wills, and only 40% have power of attorney (2019 Government of Canada Financial Capability Survey).
Being prepared in case of sudden death, divorce or in advance of your retirement will ensure a seamless transition of your farming business.
What is Agricultural Pre-Succession Planning?
Pre-succession planning is the gathering and organizing of personal and business assets and liabilities, operational records, legal documents and financial information to begin investigating your options, make strategic decisions and having thoughtful conversations with everyone involved, including your:
- Accountant
- Lawyer
- Financial Planning
- Banking Institution
- Insurance Agent
- Farming Children
- Non-farming Children
Why Hire a Pre-Succession Planning Consultant?
There are many paths to transitioning because no two farming enterprises are alike.
An agricultural-focused consultant and business organizer can provide an experienced third-party perspective to give you insights and knowledge you didn’t know you needed.
The consultant can guide you to understand and identify strengths, gaps and issues that demand attention. Then, they assemble all the required information in a pre-succession binder to document and support your succession plan.
If you are missing documentation or key legal or financial advisors, the consultant can assist with securing the paperwork and referring you to experienced professionals. Having all the necessary documentation makes it easier for your lawyer, accountant and others to advise you in the transition planning and process.
In a nutshell, the pre-succession consultant does all the preliminary background work while you continue to focus on your farming operation.
Benefits of Pre-Succession Planning
Transitioning your agricultural business requires a long-term strategy and step-by-step process to ensure a successful transfer of management and ownership.
Preplanning allows you to assess your current operation, identify your goals, establish a timeline and assemble the necessary documents to prepare you for those essential legal, financial and family conversations.
Having a strategic pre-succession plan is a smart investment in the prosperity of your farming operation. You’ll have peace of mind knowing that the next generation can successfully carry on your legacy.
For further information or if you have questions, please contact: Lacey Frizzell, Agricultural Business Consultant.
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