How to have a successful transition: talk about asset values

Asset values on the farm are continuously rising – farmland values soar, equipment costs rise and inputs trend upwards. Bringing that variability into a transition conversation can be daunting – but it’s possible.

Farm family coach Elaine Froese says it comes down to one belief: “It’s not about the money, it’s about the vision.”

Froese helps farm families find harmony through understanding. That understanding comes from having robust and tough conversations about what everyone wants and needs.

Froese says the essential conversation tools needed for transition in the face of rising asset values are:

• Ongoing communication
• Ability to listen
• Total transparency

These tools set the stage for the family to take further steps in the process:

• Assess your current state
• Set values, visions and goals
• Connect with experts
• Create a plan
• Assess your current state

Is there an appetite for a conversation about the transition? Or at least an openness to begin the discussion?

Using a scale of 1 to 10 to determine family readiness, Froese says if one person is a two and another is a nine, there won’t be a productive conversation, if at all. With such a span for readiness, a family coach can help get everyone on the same page. Or a family coach can continue to discuss unreadiness with the reluctant.

Froese says no matter how much coaching and conversations, some may never be ready to talk about transition. Maybe there’s no acknowledgement of the rising values on the farm. Or maybe the values are overestimated.

Whatever the situation, if there is too much distance, the time may have come to look after yourself. If you can’t afford the price your parents want for their farm, consider other ways you can farm full-time. If your children don’t want to pay fair price for the farm, think about selling it to someone else... Read More