ABG October 2015 - page 101

www.Farms.com/Used-Farm-Equipment 101
October 2015 | Ontario
All business owners need to constantly be thinking about the next steps for
their venture. This not only means looking into innovation and staying power,
but also considering and finding a successor to take over.
According to the 2015 Canadian Agricultural Outlook Survey, one-third of
respondents indicate that they will need to make ownership changes within
the coming years, with 62% of those expecting to transfer to family members
or partners. Surprisingly, only 30% of these farm owners are doing any
formal succession planning.
“We know farmers are so busy with their day-to-day work that it can be
difficult to imagine a day when they won’t be farming,” says Gwen Paddock,
national director of agriculture at RBC. “But we also know that having a well
thought-out succession plan will help with a seamless transition, and will
provide the means for today’s farmers to enjoy their retirement.”
To help prepare a succession plan Paddock suggests to:
• Plan ahead: Begin planning at least five years in advance of when you
think you might sell your farm. This will help to better handle any bumps
along the way.
• Share your plan: Involve key family members or partners - especially those
you are considering passing the farm to - and do so early during planning.
• Stay objective: While passing on the farm to family is a nice idea, it’s not
without challenges. For instance, does the successor have the right skills and
drive to take over? How will other workers react? Be prepared to answer
these questions.
• Seek out experts: Financial advisors and accountants have expertise that
can be invaluable during the planning process. Not only will they help you
stay objective, but they will also guide you through topics such as taxes and
wills.
More information is available at www.rbcroyalbank.com/commercial/agriculture.
www.newscanada.com