A successful farm transition requires financial planning, family communication, tax strategies, and leadership development for the next generation.
Farm succession planning requires careful preparation to protect family assets, maintain business continuity, and reduce the risk of conflict between generations.
During a presentation titled “Grow It, Manage It, Pass It On,” representatives from Desjardins discussed important considerations for agricultural families preparing to transfer farm ownership and management to the next generation.
The presentation featured Desjardins’ Shawn Filion, a Senior Wealth Management Advisor, and Jeffrey St. Denis, an Account Manager and Team Lead serving Eastern Ontario. They emphasized the importance of starting succession discussions well in advance and working with financial advisors, accountants, tax specialists, and lawyers to develop a suitable plan.
Establishing a shared family vision is an essential first step. Farm owners must determine whether the business will remain within the family or be sold to an outside buyer. They should also consider how non-farming children will be treated and how family assets will be distributed fairly.
Open communication can help prevent misunderstandings and disagreements during the transition.
Management succession is another important consideration. The next generation should gradually assume responsibilities while learning from current owners.
Differences in management styles, experience and business priorities can create challenges, making mentorship, and clearly defined decision-making responsibilities essential.
Families must also choose an appropriate ownership transfer strategy. Options may include selling farm assets, transferring company shares, or arranging payments over time.
The farm’s legal structure, including partnerships, sole proprietorships or corporations, can affect the transfer process. Shareholder agreements and buy-sell arrangements can also clarify what happens if an owner dies, becomes disabled or decides to leave the business.
Financial planning helps establish the farm’s value and determine how the next generation can finance the transfer. Equally important is understanding the retiring owners’ future living expenses.
Families should account for costs previously covered by farm operations, including utilities, insurance, fuel, and other household expenses.
The Desjardins team says tax and estate planning should begin early. Advisors can assess opportunities involving the lifetime capital gains exemption, estate freezes and family trusts, where appropriate. Wills and powers of attorney should also align with the succession strategy and clearly reflect the owners’ wishes.
Risk management, governance, and communication are additional priorities. Families should consider insurance needs and unexpected events, including illness, disability, or relationship breakdowns.
Regular family meetings, documented decisions, and transparent discussions with all heirs can help preserve trust and establish a shared understanding.
Finally, the presenters recommended developing a flexible transition timeline with short-, medium- and long-term milestones. They said that by beginning early and coordinating professional advice, farm families can better prepare for retirement, support the incoming generation and protect the future of their agricultural businesses.
Watch the full DesJardins Shawn Filion and Jeffrey St. Denis demo presentation from the 2026 Great Ontario Yield Tour below.
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