Generational Transition Program

Farms Dwindle. How Many Will be Left in One Generation?

Unprecedented consolidation is on its way.  According to an article in the Successful Farmer (May 2019), only “one out of every four or five commercial operators today” will be farming in the future.  “They (mega-operators) (will be) CEO farmers.”

But this generation has the ability to change this forecast?  How? 

Here is an opportunity to obtain an independent, outside perspective on issues that may be affecting your farm or ranch.  Free legal and financial clinics are being offered for farmers and ranchers. The clinics are one-on-one meetings with an Ag Law Attorney and an Ag Financial counselor.

These are not group sessions, but individual sessions.  And confidential!  The attorney and financial advisor specialize in legal and financial issues related to farming and ranching, including financial and business planning, transition planning, farm loan programs, debtor/creditor law, debt structure and cash flow, agricultural disaster programs, and other relevant matters.  Read the full article for September locations and dates.

The Nebraska Grazing Lands Coalition (NGLC) wants to assist farm and ranch families with the often daunting task of transitioning their family farm or ranch.

Follow this link for resources.

Buy-Sell Agreement: A Useful Transition Legal Tool

A buy-sell agreement can be a useful legal tool when planning your ranch transition.  This agreement addresses what happens when one or more of the owners dies, retires, becomes incapacitated or wants out of the business.  Benefits may extend beyond the business and into family relationships.

What is a buy-sell agreement?  Can a buy-sell agreement benefit your farm or ranch transition plan?

My Sweat, Your Equity

When physical jobs become a burden, ranchers may look to add the next generation to the operation.  Their enthusiastic energy is welcomed and needed to keep the ranch up and running. 

However, are these young folks being compensated for “their sweat” when it is “your equity”?

Do you think the homeowners flipping houses would invest their time and labor for free into someone else’s home?  No, I think not.  Why do we expect our returning ranchers to invest their labor for free (or almost free) on the ranch? 

Family-First Business or Business-First Family, Which are You?

Jolene Brown, family business consultant, says there are two kinds of family farms.  The family-first business and the business-first family.  Below is a summary of Brown’s articles on the two types.

Family-First Business: Bases decisions on emotions or what family members want to.  Majority of the times, these decisions leads to problems, first within the family, then in the business.

Business-First Family: Decisions are grounded upon a mutual mission, written goals, legal documents, and quality communication.  Family is honored and the business has the family’s best interest at heart.

“Remember when we put the business first because we care about the family.  If we do the business well, we are more productive and more profitable and everyone more happy,” states Brown.

FREE LEGAL & FINANCIAL CLINICS IN AUGUST

Farmers and Ranchers: Locations for August's free legal and financial clinics are here!  The clinics are one-on-one meetings with an Ag Law Attorney and an Ag Financial counselor.

These are not group sessions, and they are confidential.  The attorney and financial advisor specialize in legal and financial issues related to farming and ranching, including financial and business planning, transition planning, farm loan programs, debtor/creditor law, debt structure and cash flow, agricultural disaster programs, and other relevant matters.  To sign up for a clinic or for more information, call the Rural Response Hotline at 1-800-464-0258.

New Location for Generational Transition Workshop (and Grazing Conference) in Kearney!

As a result of the recent flooding in Kearney, the location of the Nebraska Grazing Conference and the NGLC Generational Transition Workshop has moved to the Buffalo County Fairgrounds.

The NGLC Generational Transition Workshop will be held Tuesday evening, August 13^th, from 6-9 pm CT during the Nebraska Grazing Conference.  The workshop will be held at the Extension Office (1400 E. 34^th Street, Kearney, NE), just across from the Exhibition Building where the Grazing Conference will be held. 

The workshop will include a producer panel and experienced estate and transition attorney, Pamela Olsen.

Practice the “Young Shuffle”

Progression, not to be confused with perfection, is simply defined as “moving forward or onward,” or better yet, “happening or developing gradually or in stages; proceeding step by step.”

And I wondered, “How many of us stop (or never start) working on ranch transition because the plan lacks perfection?”

When I think of ranch transition, I prefer the definition of progression, where planning and transition is developed gradually in stages.  Step by step.  Broken down into manageable bits and pieces.

I think of the “Young Shuffle.”

Cliff Young, a retired potato farmer, unexpectedly won the 1983 Sydney to Melbourne Ultramarathon at age 61. 

What Does Your Ranch Look Like in 40 Years?

     My great-great grandparents homesteaded on the tall-grass prairie.  The story goes the grass was so tall, they had to sit in the wagon to see where they were going.  Granted, my ancestors were little, short Europeans, but I often wonder what they saw from that wagon perch, and what visions played in their minds. 

     Could they imagine 250 bushel corn growing in the black earth harvested by machinery bigger than their first home?  What did they see from the wooden seat of the jolting wagon?  Did they see their great-grandson farming the same soil a hundred year later?

    Now I ask you this- Does your estate plan align with your future ranch dream?