A transition plan starts with a full list of labour, management and control tasks involved in owning, managing and running the farm.
Brainstorm a complete list of labour, management and control tasks for the farm. Don’t worry about keeping them in the three categories – that’s too much to think about all at once. Just focus on developing the list of all the tasks done on and for the farm. We’ll categorize them next.
Tip: Be as specific as you can. For instance, ‘Evaluate employees and coordinate employee development plans’ is much more useful as a task than ‘Employee management’.
Categorize your tasks
Now that you have an exhaustive list of tasks associated with owning, managing and running the farm, you need to categorize the tasks as Labour or Management tasks.
Labour tasks are those tasks that are associated with the basic function of the farm day-to-day. They usually include physical work but not always, and they require little decision-making.
End of season maintenance of farm machinery
Put out salt, mineral and face fly bags as needed during pasture grazing seasons
Management tasks are those that involve making decisions that affect farm operations. Management tasks ensure the farm has what it needs to operate smoothly and without interruption. Management tasks also provide the controls to ensure the farm is monitored and managed effectively.
Negotiate equipment leases with dealers
Manage insurance coverage levels (crop, casualty, disability, medical and life)
Pay bills and perform banking tasks
Coordinate annual strategic planning
Direct annual budgeting process
Monitor financial projections versus actuals
Let's categorize your farm tasks
Map out the ownership tasks during the transition period
In Step 5, you developed and evaluated options for both ownership transfer and business structure. Your work is shown below.
You’ve consulted your advisors on the options. It’s time to choose among the options and make your decisions – if you haven’t already.
Make your ownership transfer and business structure decisions.