Tips for succession planning

Feb 24, 2015

Succession planning can be a sensitive, yet necessary step

There are certain things in life that people don’t like to think about because it makes them uncomfortable.

But on a more serious note, when it comes to family-run farming operations, succession planning can be uncomfortable, but it’s a necessary step.

People can’t run the farms forever and having a plan in place on how to move forward once the time comes can make things a little easier during the transition periods.

“Succession planning is that time when you need to be involving other people,” John Mill, a financial advisor with the Canadian Association of Farm Advisors said during his presentation to a room of farmers and family members during the Chatham-Kent Farm Show in January.

The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) has a succession planning checklist that includes opening lines of communication, defining goals based on personal, business and other objectives and identifying the successor.

The University of Tennessee also published a workbook filled with tips on steps to take when succession planning is on the horizon.

Communication is an integral part of succession planning. Having everyone on the same page, knowing the next steps and whether they want to be a part of the farm operation or not is way to make the transition periods a little easier.

Join the conversation and share your experiences with succession planning and any tips for other farmers and their families.

Having open communication about a succession plan is important

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.