Farming has solidified itself as the heart of Indiana. As the farmer doing the work, it means more to you than just a job.
According to the Glass Barn Education Center, 96% of the nearly 56,000 operations are in Indiana. As your retirement grows closer, establishing a successful farm succession may ensure your farm keeps thriving into the future. Three key ingredients of a successful plan include?
1. Establish a new management team
Depending on your situation, you may already have heirs in place ready to take on the work. After you identify the people taking over, you need to ensure they know how to run the business. Even people who have worked on the farm for years may not know all the small intricacies that make it a successful operation.
2. Set a timeline
Succession does not happen overnight. To achieve success, you should start planning ahead at least two years ahead of your retirement. Establishing a timeline enables you to take the time to set different goals along the way. Additionally, include a trial period in the timeline. This may last a few months or more, but that time provides opportunities for the new management team to receive your guidance before the day comes to fully retire.
3. Prepare for the unexpected
After developing the plan and setting goals, that does not mean the process ends. Life has a way of throwing bumps in the road. If a successor’s circumstances change, you may need to go back and review and adjust the plan. Your own situation may change during that time as well. If you have dealt with unexpected medical issues, revisiting the plan allows you to change future living expenses.
While moving on from your life’s work comes with challenges, planning ahead makes the transition easier and fair for your family.
