Are We the Examples Our Next-Gens Need?

Remembering those who came before us can help us grapple with our own challenges. My maternal great-grandmother, for instance, navigated a covered wagon from Oregon to Pennsylvania with two young children. Her husband sent her ahead to ensure they made it to Pennsylvania before snow hit. My mother amazed cancer specialists in Pittsburgh as faith, farm life and meds provided a much better outcome than they predicted. All the while, she remained an active partner on the farm. Widowed rather young, my paternal great aunt was the feistiest! She worked to make ends meet for herself and two children, and was best known for her cooking and baking. Aunt Cora gifted homemade foods and crocheted items to family. She refused to install an indoor bathroom and never admitted her true age! My paternal grandmother was always on the move around the farm and in the community. One of her biggest unspoken challenges was losing her second child during an extremely difficult birth. I can’t imagine the emotional pain. Reality Threads Then and Now Together Every generation has faced huge challenges, and each overcomes them in their own way. The trials are different, but you and I aren’t the first to face them. One common denominator among those I mentioned was their positive attitudes. Not once did I hear them complaining about the situations they wrestled with. Instead, they chose not to let those trials ruin their life or their positive approach. We are not the first to face them; nor will we be the last. And, it’s a proven medical fact: A positive attitude is a must-have when fighting certain diseases as well as farming challenges. A Good Example for Our Next-Gens? Think about what examples you’re portraying for your next generation as you deal with tough situations. We all know cursing, swearing and blaming others or self won’t solve anything. Yes, a diagnosis or crisis may warrant it. But trust me, it’s not a solution. It usually makes the situation worse. It takes time but we each have a choice. We can choose to seek professional help while leaning on God, loved ones and friends to navigate our way through the decisions with a positive attitude. Too often, we ask: “Why me? What have I done to deserve this.” Refusing to make tough decisions or ignoring the situation allows it to get worse. We can learn to celebrate each day and give the battle all we’ve got with a positive attitude. Then seek the help we need. We also can embrace the people who support us through kind words, acts of kindness and prayer. Accept the blessing they provide. When we do so, we become examples for our next generation. Thankfulness is Part of the Package I’m thankful for the strong, feisty women who came before me. They provided great examples for me as I faced a cancer diagnosis and treatment. I’m thankful for prayer warriors continually lifting me in prayer during treatments and stem cell transplant, talented medical staff, and God’s amazing answers to prayer. Receiving them as blessings is huge. Whether it’s a physical or mental health crisis, succession or farming crisis, there are always professionals, family and friends to support and help us when we need them. Our job is to accept the help and answers they provide. Then, bravely move forward as required, leaving a legacy of hope and resiliency. Subscribe to Our Succession Blog & Newsletters Today Email

Family Farm Governance Plan

A Family Farm Governance Plan is an Important Tool in Succession Planning This post is not legal advice or advice on how to deal with family members, in-laws, or other relatives I want a show of hands: How many of you have a family business governance model for your family farm?  For those of you who raised your hand, you can stop reading now, but if you did not raise your hand, you might want to consider such a model for your farm.  Although you might not think they are a good fit for family farms, a governance plan can be a useful tool to facilitate bringing the next generation into the operation and ensuring the farm’s future success.  With a governance plan, you can include family members in critical business decisions, enabling future generations to learn how to make business decisions. Critical components of a family governance plan will be annual family assemblies, possibly family council meetings, and a family constitution (Davis, 2001). Family Assemblies and Family Councils When dealing with a family business, such as a family farm, companies will often have members heavily involved in the farm and those who have taken other career paths in life.  An annual family assembly is a way to keep all adult family members and spouses aware of what is going on in the business.  Families should set policies on the appropriate age for children to start attending the meetings. At these meetings, family members involved in operating the farm should present information on the farm’s status.  What is the financial situation of the farm?  Does the family need to discuss the direction the farm should be heading in, like a new niche market?  Important events?  Key changes in the farm?  Does the family need to bring in the farm’s accountant to discuss tax law changes impacting the farm?  Are there key estate/farm succession plan changes?  This type of assembly allows both on-farm and off-farm family members to discuss the family farm. Does the family have problems with communicating?  If so, the family may want to consider bringing in a facilitator to handle discussions among the family members.  Many farm families often do not wish to discuss these issues. Still, suppose the goal is to allow the next generation to take over the farm and keep it thriving. In that case, the family needs to consider keeping those family members aware of the farm’s current situation. One final note on the family meetings the governance plan requires, do not hold those meetings on major holidays.  Yes, the family is together during Thanksgiving or Christmas, but that is not the time to discuss these issues. Holidays are stressful enough.  Set the assemblies or council meetings on dates that give family members enough time to prevent scheduling conflicts.  If travel is an issue, consider allowing family members to Skype in or call in to participate. Once the family grows beyond a manageable size for assemblies (this could be over 12), the family should consider setting up a family council.  This family council will develop the agendas for the family assembly and help inform all family members of business decisions and keep those family members involved in the business aware of non-participating family members’ views. The family council should have equal representation of family members working on the farm and those off the farm and include family members of all ages.  This will help to ensure that the council has fair representation. Family Constitutions Finally, the farm will need to have a constitution or a document to guide the family’s business decisions and family decisions.  How will the family employ the next generation?  What career development opportunities will exist for those family members in the business?  How are family members to be compensated?  These are all critical considerations for the family to review. What Does This Mean for You? As you develop a farm succession plan, you need to consider how you will make the next generation aware of the decisions made on the farm.  It is also essential to think that even though a family member might not be a part of the farm business, that member may still have key input.  A family governance plan will allow you to get feedback from all family members and keep them aware of the farm’s going on.  The plan will also help ensure that the family and the farm are successful down the road. References Davis, John A., Three Components of Family Governance (Nov. 12, 2001, Harvard University) http://hbswk.hbs.edu/item/the-three-components-of-family-governance