64 / SEEDWORLD.COM FEBRUARY 2018 AMONG THE FARM and agribusiness circles, one of the most difficult and intimidating topics to discuss is succession planning. It isn’t talked about much, but when it comes down to it, it’s always better to have a secure plan in place for the next generation of farmers. In order to break the ice, Seed World interviewed three dif- ferent succession planning consultants to learn about the most important pieces of information needed in order to begin plan- ning for the future. “I recommend they start with a conversation usually among owners and family members working in the operation about their goals,” says Kevin Spafford, CFP at Legacy by Design, LLC. “Most owners want to create a retirement option that allows them to continue working in business while enjoying the lifestyle they’ve come to appreciate.” Spafford notes that by conversing about the future, it’s easier to put plans into action, instead of leaving the succession up to chance. “Families need to talk, listen, and respect each other through this process,” says Dennis Henks, CFP at Lincoln Financial Advisors. Right off the bat, they should talk about their goals and timeline, as well as what they each expect from this.” According to the latest Ag Census from the USDA, the age of the average farmer has been increasing since 1982 — the average age of a farmer in 2017 was approximately 58 years old. As the average farmer gets older, the more necessary this discussion should be. “Succession planning protects the legacy of what you’ve worked so hard to build,” says Mitchell Horst, president and co- founder of Select Wealth Advisors. “It protects the company, but you also have people you want to take care of.” What Ifs? Succession planning eliminates the “what if” questions such as: what if someone passes away suddenly? What would happen to the business? “It’s unfortunate if someone passes suddenly,” says Henks. “In succession planning, you always have the Plan A if everything goes perfect – mom and dad live to be 100, child can take over, etc. But there needs to be a Plan B in case something doesn’t go right.” Planning a Timeline Most consultants don’t have a standard timeline when it comes to starting the succession planning, it varies from consultant to consultant. So families need to determine who the best consult- ant would be for their specific needs. “It’s more important to make steady progress and work towards achievable objectives,” says Spafford. “The succession planning process includes four integral elements: financial plan, ownership transition, leadership structure, and estate tax plan.” Horst notes that it takes a long time to plan for your succes- sors, so it’s better to get started early. “You’ve got to have it basi- cally cooking for ten years. By the seventh or eighth year, you really want to start taking a step back to see if it’ll float or sink under new management.” Henks believes it takes even longer. “To be the most successful, it’s really a 30 to 40 year process. It starts when your children are young and impressionable. Introduce things little by little. Give them minor chores that will help them learn responsibility. As they reach high school continue to provide more opportunities,” he says. “Be sure to talk about the finances, let them set in on planning meet- ings. Encourage them to attend college or a trade school and to work for someone else for three or more years.” SW Continuing the conversation, Seed World speaks with three succession planning consultants to learn about the most important pieces of information needed in order to begin planning for the future. Alex Martin amartin@issuesink.com Starting the Succession Planning Conversation By mapping out the future, it’s easier to put plans into action, instead of leaving succession up to chance.