Jan 02, 2014
New Year’s resolutions can be easy to make but hard to keep, but farm succession planning is a worthwhile New Year’s resolution to make—and to work at keeping.
Kevin Spafford, founder of eLegacyConnect, which provides succession solutions for farm families, says making a commitment to the succession planning process will empower you as a business owner to strategize and create options for the future. Spafford says there are four important elements of a comprehensive succession solution:
Ownership Transition—In most cases, transferring ownership to a well-prepared next generation requires financial planning for retirement, a contingency plan for non-performance and a method for gradually turning over the reins.
Financial Security—A comprehensive plan provides financial security for each ownership household dependent on the continuing success of the operation and/or proceeds from the sale.
Leadership Development—A plan for developing leadership skills in such areas as management, team building and business design is critical to operational growth and lasting success.
Estate Tax Provisions—An owner’s personal estate planning documents should parallel the provisions of the succession plan to protect the integrity of the operation.
Find out more about succession planning on the American Soybean Association’s website.