This is the final installment of our list of questions that can help you decide if the time is right for a farm business transition.
Hopefully you had a chance to read parts 1-4 and think about where your planning needs to go next.
21. Are entering children willing to pay parents adequately for work done on the farm after retirement?
22. Are entering parties willing to sacrifice standard of living and go the “extra mile” with work to get started farming?
23. Are entering parties appreciative of the farming opportunity given to them by their parents? Are they willing to “give and take” to make the transfer process successful?
24. Do the entrants wish to farm because they have prepared for it educationally and feel it is their chosen field? This is in contrast to those who enter farming because they can't find anything else to do, or nothing else worked out, or it is an expectation of their parents.
25. Do the entering parties have a realistic grasp of current agriculture and what it takes to put together a profitable, competitive business?
If you can answer "Yes" to nearly all of these questions, you should look for my next blog and a few more questions. If you answered "No" to any question, you may wish to evaluate the situation before you proceed.
In some cases, you will need the help of trusted advisors to answer these questions. It's another reminder of the value of fee-only, fiduciary financial planning advice during this process.
If this article has you thinking about your own circumstances, contact my office at [email protected].
The opinions of the author are not necessarily those of Farm Futures or Penton Agriculture.