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Real Talk: Farm Succession Planning

Discussions about farm succession planning can be difficult for everyone involved. But a new episode of the Farm Stress Real Talk with Penn State Extension podcast is here to help.

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Updated:

January 8, 2024

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Our farm stress Extension educators would like to introduce you to a new podcast they have developed specifically for farmers. It is called Farm Stress Real Talk with Penn State Extension and focuses onsupporting farmers, farm families, and workers in the commercial agriculture industry who are experiencing stress.

In each episode, Extension educators, Penn State faculty, and other agricultural professionals will tackle topics that challenge our farming community, provide constructive suggestions, and build awareness around the potentially stressful conditions affecting farmers. Guests will discuss research on and/or real-life experiences of what has and has not worked. They will also provide tips to help you more successfully identify signs of stress and offer advice on coping strategies and techniques.

The following information was provided during the episode "Conversations about succession planning with Dr. Matthew Kaplan." Dr. Kaplan is a professor of intergenerational programs and aging at Penn State. For more information about his research, read Farm Succession Planning — Conversations to Strengthen Farm & Family(PDF).

Where to Begin

Admittedly, farm succession planning can be complicated, especially when not everyone agrees on what should be done. In fact, many farm families avoid the conversation about succession because they are worried about the conflicts it might cause.

According to Dr. Kaplan, families often give the following reasons when asked why they put off having "the talk":

Economic Concerns—Discussing money among family members invariably can lead to conflict. Issues such as debt, land value, and farm continuity might all come into play. More philosophical concerns, such as the growing loss of farmland and future food accessibility, can add a layer of complexity to already difficult decisions.
Fear of the Unknown—No one can predict the future, so it is to be expected that family members might have concerns about how things will change and how to make decisions within a changing family structure.
Different Perspectives—In many cases, not everyone agrees on what is best for the family or the farm. Assumptions like, "They just know what I want," or "We can deal with it when the time comes" can prevent the conversation from even starting.
Fairness—How many family members have an interest in the farm? Do some work as part of the family business while others don't? Sometimes fair doesn't always mean equal, but this, too, is a difficult topic to raise.

If you are or have been involved in farm succession planning, some of these concerns might sound familiar. Regardless of your situation, though, one thing is certain: Indefinitely postponing a discussion will only make it more difficult. Would you rather have the discussion after a loss or a family emergency? Dr. Kaplan suggests the time to begin is now.

Having "The Talk"

So how can families overcome these conversation barriers? Dr. Kaplan suggests families be proactive. Start early and commit to the process. Based on his research, here is his advice for successful farm succession meetings:

Participation—Have family meetings where everyone who wishes to be involved has the opportunity but respect the wishes of those who do not. Start the meeting early enough in the day so that the youngest members (children, grandchildren, or both) can be included. This conveys to young people that their input is needed and valued. Also be sure to include family members in important meetings with accountants and attorneys.
Frequency—Succession planning is a complex process and will likely not be resolved in one meeting. Allow for the meeting to be ongoing. Agree on when and where the meetings will be held. Set the dates far enough in the future to allow participants to make arrangements to attend. At the very least, set aside an annual date and time to meet. Remember to allow time at the end for documenting decisions and unresolved issues.
Preparation—Admit up front that the conversations may be difficult, but that they are vital. Work on creating a shared mission statement. This can help refocus discussions and keep the priority on the family farm's future.Keep the big picture in mind. Is the goal to do what’s best for the family, for the farm, or both?
Communication—Be an active listener. This is a discussion, not a speech. Ensure that each of the participants feels heard. Be explicit. Don't assume that others automatically understand what you mean. Asking others to restate what they mean (or what they heard) can minimize misunderstandings. Keep an open mind when people express their wishes. Allow all family members to share their opinions, concerns, and plans openly. What if a family member has plans to go to college? How could the skills learned there be applied to strengthening the family farm? For example, if that family member earns a marketing degree, how might that person contribute to and help grow the family business?
Results—Make the decisions concrete. Put the discussion, outcomes, and unresolved issues on paper. Record who agrees and who disagrees with each proposal or decision, keeping in mind this document can be modified over time. Use this document to identify materials (both completed and still needed), including wills, estate planning materials, and charts and graphs from outside sources such as attorneys and accountants. This document will help create clarity. Develop job descriptions for individuals. These steps will provide direction and facilitate the separation of family and business relationships.

Family farm succession discussions can be emotional and difficult to initiate but may play a major role in strengthening the farm enterprise and family structures. Don't be afraid to have difficult conversations. If the conversations are done carefully, the long-term benefits will outweigh any initial bumps.

For more information on having difficult conversations about farm succession planning and other stressors in the agricultural community, please follow Farm Stress Real Talk with Penn State Extension. Look for it wherever you get your podcasts or on the Penn State Extension website.