Farm Succession Planning » farm strategic planning

Which Professional Adviser Best Realizes Your Succession Planning Alternatives?

admin — Fri, 25 Feb 2011 14:36:00 +0000

It isn’t unusual for a farm owner to have 90% of everything they’ve got tied up inside the farm’s operation. I am not talking if you personally own it or the farm is the owner of it or even if the farm corporation or partnership owns it.

What I am saying is you almost certainly have a small amount of hard cash that is not going to end up being necessary to run the farm and all your additional assets are being employed by the farm to generate income.

So what on earth could happen to your family, your partners, your family members, and even the farm itself when you die, prematurely of course.

Whether all you, and maybe your parents before you, built will come apart or not will be the consequence of the plans you are making today.

Naturally each and every situation is different, on the other hand there are actually only three possible remedies available to you when designing your farm’s farm succession plan for the future.

One option would be to simply sell the place, turn over the assets by selling everything one item at a time. You’ve gone to dozens of farm sales and so you understand what I mean.

Selling the farm one asset at a time, the public auction strategy, will simply return you five cents on the dollar for all the assets, with the exception of perhaps the best farmland or the ready to be developed acreage you own. Think it over, when you attend a farm auction do you go there to find out the total amount money it is possible to purchase something? Absolutely not, nor will your neighbors if they come to your own family’s sale.

An additional option may be to sell your entire farm business as a going concern. A good example of this would be the agreed upon sale to a neighbor’s daughter or to the farmer down the road.

The very last option, the most preferred option for almost all farmers of my own working experience will be to pass the farm business to the next generation, a son or daughter, along with their spouse and off farm heirs, to ensure the farm could keep on as it has for generations.

Passing down the farm is everybody’s vision, having the farm organization carried on by a son or daughter with mom and dad on the front porch watching over them, or perhaps taking a luxury cruise looking at the web cam dad installed in the barn so he is able to still check into the milking from half way around the globe.

Here are a few of the very important points included in the original farm succession toolkit, questions that demand answers in advance of serious steps toward the ultimate transition of the farm must be taken.

Can your children run the place? Will your banker and trade creditors have faith in your successor’s judgement if you’re no longer there to back up his or her choices?

How about your key employees, will they hang around and work with your heirs or will they take off immediately after the burial? How do you know? Will they work with your next generation successors?

For that matter will your family work together? What if you have just one successor on the farm and all the others haven’t any interest in operating the farm, just in obtaining their “fair share” of the inheritance?

Is it possible to see any challenges right here? Is it possible that your heirs would like their inheritance at the same time the government requires its taxes, and the medical center expects their money and the bank needs to clear the current notes before lending money for next spring’s planting or feeder stock?

Ya think anyone not receiving their “fair share” in cash and immediately will probably be bitter making it hard on your kids and your spouse?

A cost-free zero obligation talk together with your farm insurance professional who will tell you about the exact conduct of normally great folks, can be an eye opener.

Will there be enough cash flow to settle the non-farm heirs, the bank, etc. and pay your successors and key employees to run the farm and still have income safety for the rest of your dependent family?

If it turns out that either there isn’t anyone in the family who can run the place, or the kids won’t work together, or there isn’t enough money to pay them off and still continue to farm, then maybe you’d be better off to simply sell the place.

The only real question is, who’ll establish the price and the terms and whether or not your family will receive the greatest value for your years of hard work.

There is one way to make sure in advance your interests are protected, a Buy & Sell Agreement.

Farm insurance agents have arm loads of sample agreements and access to just about the most innovative minds around who will look at your position, what’s important to you, and help you and your family create a process that will insure that the terms of the agreement will be kept and that the farm and your family’s security will be protected.

Remember, this is a business and if you want it to succeed after you are gone you have to begin laying the groundwork today.

Because your situation and family dynamics are unique, no one size fits all approach will work for you. If I was going to provide real and lasting value I had to create a process that was infinitely customizable – for each situation. By providing you with the right questions – those that uncover what’s important, for you to ask your family members, your employees, and your advisors.
Click here to find out how this is possible!

Who Are The Important Members Of Your Farm Strategic Planning Team, and Where Will They Come From?

admin — Wed, 23 Feb 2011 15:50:00 +0000

Smart farmers recognize that farm strategic planning is mostly about looking down the road at what’s hiding round the bend.

In addition they realize that if everyone is on board when it comes to considering the future benefits of their strategic planning, they will be more committed to take part in it and use the outcomes.

Any time people are concentrated on the future beyond this growing period they end up thinking, what’s important about that, when offered options, possibilities, and maneuvers for growth.

Farm strategic planning is about seeing what you can do more clearly so that you can, as an organization, make choices that profit the long term objectives of the farm and therefore the family.

The strategic planning web sites, textbooks, and how-to publications seem to miss the point if they describe the importance of the strategic planning team by implying that the operation must be big enough to have the people chilling out ready to take on an additional task, that of joining the strategic planning team. That flawed presumption eliminates about 75% of all the businesses in existence.

What if you could possibly reach out to the most effective people possible, those with a variety of points of views whose feedback will allow you to create a sensible strategy. These people could help you establish and maintain an actionable strategic planning strategy over the long haul. And also because there is never any kind of fee for their wisdom, your strategic planning team will function regularly perpetually.

Lots of successful farmers regularly meet up with members of their industry association, other farmers and leaders whose outcomes have been demonstrated over time and whose views they trust.

In the wintertime you may come together face to face, perhaps in advance of or following an association event. Through the busy time of the year you meet over the phone. Simple and effective.

Those of you who are closing in or retirement age bring lots of experience to the team. People who find themselves in the midst of their careers, perhaps with children to consider, add a different dimension, while successors of successful farming businesses endeavoring to develop the business one stage further broaden the range of diversity.

The result, insights from diverse points of views that brings a priceless richness to the process.

When using the constant suggestions from your strategic planning peer group it is possible to more easily target strategic opportunities all around you that would have continued to be unseen to you without their well considered input.

When you and the other members of your strategic planning peer group put your intentions of paper and keep them in front of each other you will develop an environment for continually analyze and modify your evolving mission statements.

Continuously articulating your goals for the future as they are continually refined by your strategic planning peer group will keep the important next steps always in view.

Taking action yourself or delegating it to the individuals within your organization who have the energy, authority, and accountability for their completion is all that now stands between where things are today and where you want them to be in the future.

When you make better decisions you get better results. Successful farm strategic planning is the result of continuously making better, more informed decisions. The best decisions are typically those made in collaboration with people whose success we respect and whose opinions we trust. When we harness to power of our peers we make better strategic planning decisions 100% of the time.
Click here to find out how this is possible!

Exactly Who Best Grasps Your Farm Succession Planning Options?

admin — Fri, 11 Feb 2011 21:09:00 +0000

It’s not at all uncommon for a farm owner to have ninety percent of every thing they’ve got tied up in the farm’s business. I am not talking if you own it or the farm is the owner of it or even if the farm company or partnership possess it.

What I am saying is that you almost certainly have very little cash which is not going to be necessary to operate the farm and all your various other resources are now being employed by the farm to create income.

What exactly could happen to your family, your partners, your family members, and even the farm itself when you die, prematurely obviously.

Whether all you, and perhaps your folks before you, created may come apart or not will be the result of the plans you are making right now.

Not surprisingly each situation is different, nevertheless you’ll find only three possible options open to you when designing your farm’s succession plan for the future.

One option could be to basically sell the farm, liquidate the property by selling almost everything individually. You’ve gone to plenty of farm sales and so you realize what I mean.

Selling the farm one asset at a time, the highest bidder procedure, will still only return you 5 cents on the dollar for all your assets, except possibly the best farmland or the ready to be developed property you own. Think about it, when you attend a farm sale do you go there to find out the total amount money you can buy something? Absolutely not, and neither will your neighbors if they come to your family’s auction sale.

A second alternative may be to sell the whole farm as a going concern. A good example of this may be a negotiated sale to a neighbor’s boy or to the farmer down the road.

The final option, the favorite option for almost all farmers of my personal knowledge is to pass the farm business to the next generation, a son or daughter, along with their husband or wife and off farm beneficiaries, so the farm could continue on as it has for generations.

Passing down the farm is everyone’s objective, having the business continued by a son or daughter with dad and mom on the front porch watching over them, or possibly taking a vacation looking at the web cam they set up in the barn so they can still check into the milking from half way around the globe.

Here are only a few of the very important points incorporated into our own unique farm succession resource, questions that demand answers in advance of critical steps towards the ultimate transition of the farm should be taken.

Can your children run the farm? Will your banker and trade lenders trust their judgement if you are no longer there to support their conclusions?

How about your key employees, will they stay and work with your heirs or will they leave the farm immediately following the funeral? Can you be sure? Can they work with your children?

For that matter can your family work together? What if there is just one successor on the farm and all the rest have no interest in operating the company, merely in receiving their “fair share” of the inheritance?

Are you able to see any challenges right here? Is it even remotely possible that the beneficiaries will require his or her inheritance at the same time the federal government requests its taxes, and the medical center requires their money plus the banker wants to clear the current notes before lending money for next spring’s planting or feeder stock?

Think anybody not getting his or her “fair share” in cash and right away will probably be bitter making it hard on your kids and your spouse?

A free of charge no obligation chat together with your farm insurance broker who’ll tell you about the exact behavior of normally really nice folks, can be an eye opener.

Will there be enough cash flow to pay off the non-farm heirs, the bank, etc. and pay your successors and key employees to run the farm and still have income protection for the rest of your dependent family?

If it turns out that either there isn’t anyone in the family who is able to operate the place, or the kids can’t work with each other, or there is not enough money to pay them off and still continue to farm, then maybe you’d be better off to just sell the place.

The only question is, who’ll set the price and the terms and whether or not your family will receive the greatest value for your years of hard work.

There is one way to make sure in advance your interests are protected, a Buy & Sell Agreement.

Farm insurance agents have arm loads of sample agreements and access to some of the most resourceful minds around who will look at your situation, what’s important to you, and help you and your family create a process that will insure the terms of the agreement will be kept and that the farm and your family’s security will be protected.

Remember, this is a business and if you want it to succeed after you are gone you have to begin laying the groundwork today.

Who Are The Important Members Of Your Farm Strategic Planning Team?

admin — Wed, 09 Feb 2011 14:49:00 +0000

Successful farmers recognize that farm strategic planning is mostly about looking down the road at what’s round the bend.

Additionally, they understand that if everybody is on the same page when it comes to considering the long term significance of their strategic planning, they are a good deal more encouraged to take part in it and use the final results.

When people are concentrated on the future beyond this growing period they find themselves asking, what’s important about that, when offered options, possibilities, and plans for growth.

Farm strategic planning is all about seeing your options more clearly so that you can, as an organization, make choices that profit the long term aims of the farm together with the family.

The strategic planning web sites, textbooks, and how-to materials frequently miss the point whenever they identify the importance of the strategic planning team by implying that the organization needs to be large enough to have the people all set to take on one more project, that of joining the strategic planning team. That flawed assumption eliminates about 75% of all the companies on the planet.

Suppose you could potentially get in touch with the very best people possible, people that have different views whose tips will allow you to create a reasonable strategy. They could help you develop and maintain an actionable strategic planning strategy over the long haul. And considering that there’s never any fee for their contribution, your strategic planning team will operate continually indefinitely.

Many successful farmers routinely get in touch with members of their industry organization, other farmers and leaders whose results have been demonstrated over time and in whose opinions they trust.

In the winter you might gather physically, maybe prior to or just after an association event. During the busy time of the year you meet over the telephone. Simple and effective.

Folks that are closing in or retirement produce plenty of experience to the team. Those who find themselves in the midst of their careers, perhaps with young children to consider, add yet another dimension, while successors of successful farming businesses wanting to increase the business one stage further expand the range of diversity.

The end result, observations from diverse viewpoints that contributes a priceless richness to the process.

With the continual input from your strategic planning peer group you’ll be able to more easily target strategic opportunities all around you that would have stayed hidden to you without their well considered input.

As you and the other members of your strategic planning peer group put your intentions of paper and keep them in front of each other you will develop an environment for continually look at and adjust your evolving mission statements.

Continuously articulating your goals for the future as they are continually refined by your strategic planning peer group will keep the important next steps always in view.

Taking action yourself or delegating it to the individuals within your organization that have the energy, authority, and accountability for their completion is all that now stands between where things are today and where you want them to be in the future.

Who Do You Think Best Grasps Your Long Term Planning Options And is Prepared To Help You With All of Them?

admin — Fri, 28 Jan 2011 12:09:00 +0000

It is not uncommon for a farmer to have 90% of almost everything they have tied up inside the farm’s business. and I’m not talking about whether or not you personally own it or the farm is the owner of it or even if the farm company or partnership is the owner of it.

What I am saying is that you in all probability have a small amount of cash which is not going to be needed to operate the farm and all your various other resources are being utilized by the farm to generate income.

So what may happen to your family, your partners, your family members, and even the farm itself when you die, prematurely obviously.

No matter whether all you, and maybe your parents and grandparents before you, built may come apart or not is definitely the result of the plans you are making now.

As you would expect each situation is unique, nevertheless there are actually only three possible alternatives available to you when designing your farm’s plans for the future.

One alternative would be to just sell the farm, liquidate the property by auctioning off almost everything one item at a time. You have gone to a lot of farm sales and so you realize what I mean.

Selling the farm one asset at a time, the highest bidder procedure, will only return you a few cents on the dollar for all the assets, except for possibly the prime farmland or the ready to be developed property you own. Think about it, when you go to a farm sale do you go there to find out what amount of money it is possible to pay for something? Of course not, and neither will your friends if they reach your own family’s auction sale.

An additional option may be to sell the whole farm business as a going concern. An illustration of this could be a negotiated sale to a neighbor’s son or to the farmer down the road.

The last option, the favorite option for almost all farmers of my own experience is usually to pass the farm business to the next generation, a son or daughter, along with their wife or husband and non-farm beneficiaries, to ensure the farm could continue on as it has for generations.

Passing down the farm is everybody’s dream come true, having the farm organization carried on by a son or daughter with dad and mom relaxing on the front porch watching over them, or maybe taking a cruise trip checking the web cam they set up in the milk house so they can still check into the milking from half way around the world.

Here are only a few of the critical points in our cutting edge farm succession resource, questions that demand answers before significant steps towards the ultimate transition of the farm should be taken.

Can your kids run the farm? Will your bank and industry lenders rely on your successor’s judgement if you’re not there to back up his or her decisions?

How about your key employees, do you believe they will stay and be employed by your heirs or will they leave following the memorial? Can you be sure? Will they work for your next generation successors?

For that matter can your family work together? What if there is just one single successor on the farm and all the rest haven’t any interest in operating the company, simply in getting their “fair share” of the inheritance?

Is it possible to see any problems here? Is it feasible that your heirs will need his or her inheritance at the same time the government demands its taxes, and the medical center wants their money and the banker would like to pay off the current notes before loaning money for next spring’s planting or feeder stock?

Think anyone not receiving his or her “fair share” in cash and without delay will probably be bitter and make it hard on your kids and your spouse?

A no cost zero obligation conversation together with your farm insurance professional who’ll let you know about the actual actions of normally really nice folks, can be an eye opener.

Will there be enough cash flow to settle the non-farm heirs, the bank, etc. and pay your successors and key employees to run the place and still have income safety for the rest of your dependent family?

If it turns out that either there isn’t anyone in the family who is able to manage the place, or the kids do not want to work with each other, or there isn’t enough money to pay them off and still continue to farm, then maybe you’d be better off to just sell the place.

The only question is, who will set the price as well as the terms and whether or not your family will receive the greatest value for your years of hard work.

There is one way to make sure in advance that your interests are protected, a Buy & Sell Agreement.

Farm insurance agents have arm loads of sample agreements and access to some of the most resourceful minds around who will think about your position, what’s important to you, and help you and your family create a process that will insure that the terms of the agreement will be kept and that the farm and your family’s security will be protected.

Remember, this is a business and if you want it to succeed after you are gone you have to begin laying the groundwork today.

Farm Succession Planning » farm strategic planning

Which Professional Adviser Best Realizes Your Succession Planning Alternatives?

Recommended Reading

Who Are The Important Members Of Your Farm Strategic Planning Team, and Where Will They Come From?

Recommended Reading

Exactly Who Best Grasps Your Farm Succession Planning Options?

Recommended Reading

Who Are The Important Members Of Your Farm Strategic Planning Team?

Recommended Reading

Who Do You Think Best Grasps Your Long Term Planning Options And is Prepared To Help You With All of Them?

Recommended Reading