Family-owned farms account for 95 percent of U.S. farms, according to the latest U.S. Department of Agriculture’s Census of Agriculture.
Brad Weger – who farms alongside his dad, uncle and grandpa – joked that the positive and negative side of working with family every day is, “You’re working with them every day.”
That can also mean it’s difficult to get away from the business side of things.
“The work never stops,” he said. “It’s hard not to bring work home with you.”
Tim Christensen is an Iowa State University-Extension and Outreach farm-management specialist. He’s been doing workshops and working one-on-one with farm families for eight years. One thing he’s seen in his interactions with those putting together farm transitions is the push and pull between generations on the farm, he said. The older generation want the younger generation to come in and make things happen. But at the same time the older generation is too afraid to give control of the operation over because they’re afraid the younger will make a mistake.
Christensen reassures older farmers that they can give the younger generation enough rope to make a mistake but still prevent them from falling. Communication is key when it comes to farm businesses, he said.
The older generation has the responsibility to talk to the generation receiving the farm business. He said he knows of a 40-year-old son who farmed with his father all his life – but who got an off-farm job because there was no communication in regard to what would happen to the farm in the future. He advises that those planning to pass their farm on to family members build a trusted team. Sometimes people keep secrets, but advisers need to have good information to be able to give good advice.
“Knowing what the business has and how it’s titled is a key to success,” Christensen said. “When there are clear and transparent financial records for the business, it’s a lot easier to build a transition plan.”
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