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Clarity on Cashflow: Fueling Your Farm Succession and Transition Livelihood

Aug 09, 2021

Video: Clarity on Cashflow: Fueling Your Farm Succession and Transition Livelihood

Presented by Bernie Kottelenberg, Farm Life Financial

This presentation was part of Farm Transition Appreciation Day January 12, 2021, celebrating farm transition planning at every stage and helping you and your farm team take the next step in farm transition.

Understanding the cashflow generated by the farm is a critical component in planning for transition. When a family gains clarity on how their business is performing, they can have discussions and make decisions about:

o Current reality and future goals & dreams
o The farm’s ability to finance an expansion to accommodate the next generation and fund Mom & Dad’s retirement
o The role for family debt or equity in financing the transition
o How to calculate a successor’s sweat equity in the farm, and how it can be recognized in the planned succession
o Steps the family can take to help prepare the farm for succession
o How much equity Mom/Dad should protect in the farm business

We will refer to a case study to show how many of these questions were answered by one of our families and show how clarity on cashflow lead to successful transition for both generations.

For more farm transition resources, visit farmtransitionguide.ca, a one-stop-shop for transition planning tools and resources.

Clarity on Cashflow: Fueling Your Farm Succession and Transition Livelihood

Video: Clarity on Cashflow: Fueling Your Farm Succession and Transition Livelihood

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