The transition from successor to owner can’t happen overnight. And an owner can’t simply be the owner one day and the past owner the next. It’s much too big of a shock to the system. So an orderly transition is the best way to handle the change where the owner has a plan to let go of things over time, and the successor has a plan to pick up new responsibilities over time. And before you know it, the transition has been as painless as possible.
Management skills are not hereditary. They need to be learned by the successor which requires the farm owner letting go of some of the reins before he/she lets go for real. And it’s not effective to hand over the labour and even some of the capital decision making without also handing over management responsibility that goes hand in glove with those things.
Each year of the transition should contain shifting balances of production labour, production decision-making, operations planning, capital planning and decision-making, HR selection, direction and management, sales and supplies negotiation, identifying and negotiating of loans and financing and full financial management.
Don’t worry, we’ll walk you through the planning.