Late in August I attended the 2009 International Succession Conference in Quebec City. Why would I leave the farm when harvest was just beginning? In order to get more tools and ideas to help farm families work through the tough issues of transferring the farm to the next generation.

Here’s a cornucopia of gleanings from my experience :

“You are no longer self-sufficient in a complex world..” says ag. economist Daniel Mercier Gouin. Dr. Gouin emphasized that a good manager will try to control for debt load, will be continually getting more education, and will seek out advisory services. It’s the management that makes the difference on the farm. “DNCE” means “do not cover their expenses.” If you are in the 28% of Canadian farms that are DNCE, you need to act to change that scenario.
Translation: Many farm folks have had a disastrous year with markets, poor crops and crushing debt. Don’t suffer alone, seek out debt servicing options, financial analysis of where you are really at, and don’t be afraid to ask for help. You may want to consider voluntary mediation with the Farm Debt Mediation Service. ( call 1-866-452-5556 ).

“Thirty percent of new farms in France are managed by people who are not from the farm” says Edouard de Sainte Maresville. France has a very strategic plan to help young people start farming. Older farmers are encouraged to rent houses and buildings to encourage installation of younger farmers. Sellers are listed on the web to create linkages between buyers and sellers. There is lots of mentoring using viable plans, and skills training. When a young farmer needs to leave the farm for training, there are relief workers available to do the farm work.
Translation: What are you doing to mentor the next generation of farmers? Will you be positive and thankful for the opportunities you see in agriculture? Will you move off the home place to let the new manager test out his/her skills and have more control? Would you consider a non-family member to be your new business partner?

FCC’s Farm transfer workshops are now open to any one wanting to learn how to be a better farm manager. Go to www.fcc.ca/learning or call 1-888-332-3301 to find the entire list of workshops. This is a great opportunity, registration is free, to improve your management skills and have a forum to talk with other farmers.
Translation: Farmers need to be life-long learners. What do you need to learn this winter?

“Many farm families are hoping for continuity of the farm, and this hope of continuity gives their life meaning.” says Caroline Collard and Brigette Pare. These Quebecois women have worked very intensely with many farm families to find the tools of transfer success. The driving force of “keeping the farm intact”, farm continuity is very important to many, and is sometimes unspoken. They see success involving:
-common vision
-new owners are identified and trained
-there is much dialogue
-shared decision making
-respect is mutual
-leaving and “letting go” is done well by the founders.
Translation: Communication is the big factor in farm transfer. You need to share passion and a common vision with mutual respect. The non-business family members need to be part of the discussion. Decision making must be shared. The average age of producers is increasing and their rate of replacement is declining. Hence, you better figure out fast how you are going to make the transfer of ownership a successful process.

“Don’t forget to think about the time value of money” said Bill Brown, from the University of Saskatchewan. Often the parents don’t know their real family living expenses, and when it comes time to move off the home place, there are little to no savings or investments to support the new lifestyle. Brown stressed that there needs to be revenue planning and diversification of investments. Do you realize that 1/3 of Canadians age 55-64 have no RRSP or pension?
Translation: Are you saving now? Realize that the earlier you set up a savings plan, the more time you have for money to work for you. Do you have a financial planner on your advisory team as part of your succession process? This needs to be started decades before the actual transfer is to take place. If you think Mom and Dad are being stubborn about making the transition to a new lifestyle, have you considered that they are afraid they don’t have enough money to move to town or Arizona, or change? As a young farmer have you thought about non-farm investments, tracking your living costs, and using a financial planner? Consider that 50% of retirement income streams should come from non-farm sources.

Action steps:
1.Celebrate Thanksgiving with a grateful heart. Being a farm family makes you very special entrepreneurs, and only 2% of the Canadian population.
2.Communicate in a family business meeting, not around the turkey, but in a separate venue, about your learning plan for sharing decision making about the future.
3.Keep track of family living expenses this fall and winter, interview financial planners.
4.Reflect on what gives your life meaning and purpose. Passionate farmers are more profitable. Great managers make the difference.

C’est toute pour maintenant. That’s all for now. I’ll bring more news about my gleanings in future columns. Share your succession stories with me at elaine@elainefroese.com.

Dad, how would you feel taking on the role of hired man?
Your son or daughter is ready to take over, and you’d be wise to let them

One of the tricks of a great farm succession is the founder’s ability to let go of management, and ultimately ownership. There are many 60-something and 70-something farm dads on the bald prairie who just don’t know how to change from being the main manager to the hired man. I know “hired man” is not the politically correct term. I should say “employee,” but employees make a wage, and I don’t know if Dad is getting a paycheque!
When you started farming for your dad you were labour, then you gained skill to manage, and then you took over the operation by buying shares or land or assets. Now at age 67 or 72 you are wanting to step back, and only work when you feel like it. You are again the labour component.
Here are some questions to ask yourself as you make this transition: Do you take instruction well? Can you be self-motivating? Will you have a learner mindset instead of a judger mindset if your son does things differently than you would? Do you have interests outside of your role on the farm? Are you paying attention to what your wife needs now?

Benefits of this new role
Some farmers don’t have a clue how to see something from another’s perspective. They are strong-minded talented entrepreneurs who are used to calling the shots. Now may be the time to do some thinking in the combine about what you really want your life on the farm to look like. Are there plans for travel and recreation?

Do you have your personal finances in order? Are you cherishing your marriage? Do the far away grandkids get many chances to see you?

Everyone wants to be loved and be needed. Lack of appreciation is a big stumbling block to successful farm transfers. Don’t wait another day to tell others they are appreciated.

Let the folks on your farm team know the struggles and fears you are having about being useful in your old age. If you are a “grumpy old man,” they will know by your behaviour that something isn’t right, and you are obviously not happy.

By the way, you are not old, you are “young-old” if you are still active. You really need to create fun things and purpose for the next two decades of your life.

Don’t put off having fun, as health may change, and you have the time and finances now to explore creative ventures.

Find some great causes to volunteer for. Mentor a younger farmer if you have sold your farm. Adopt grandkids who need grandparent influence in their lives. Ask your local town if they need a talented re-invented farmer to fix and maintain machinery.
Let your farming adult children make mistakes and grow the business the way they want to. You can be a source of wisdom and experience as you make sure you are perceived as helpful, and not interfering. Ask if you can partake in the family business meetings, so that you feel in the loop of communication.

Ask yourself what you want your legacy to be. I hope that when I am 65, I can encourage the next generation, help do yard work, play with grandchildren, volunteer fully in my town, and enjoy some short term mission work with Mennonite Economic Development Associates ( www.meda.org <http://www.meda.org/> ), where they use economic development to alleviate poverty.

Can you be the hired man again?
Test it out. Talk about what is working and what isn’t. Teach the next generation with courtesy and respect for their talents.

I would be deeply honoured to hear your story. We all need role models to look up to and encourage us to succeed in new, creative ways. Elderhood is not a highly respected role in our society, but one by one, we can change that perception.

September is going to be a hectic harvest month. All the best as you labour in love .

Thanksgiving is one of my favourite celebrations of the year, simply because it calls me to give thanks with a grateful heart. It’s a marker in our year after harvest as we gather at church to view the display of wheat, garden gifts, and celebrate with a bountiful meal. We also are blessed to share the bounty of the harvest with others across the globe who receive our mission gifts.

Are you celebrating with an attitude of gratitude this fall? It’s been a year since my mother-in-law, whom I loved dearly, was diagnosed with terminal cancer. She passed away in January 2009, yet her legacy of living generously lives on in our hearts. I am thankful that her love still grounds me when I encourage daughters in law.

Celebration is one of the key factors for strong farm families to be able to bounce back from the bumps of life. Dr. Nikki Gerrard’s research showed that those farmers who can step back and celebrate what is good in their world are more resilient to the stresses of farm life’s messes.

As I write this, I am reflecting on a workshop led by David Gouthro (www.theconsultingedge.com <http://www.theconsultingedge.com), an expert facilitator. He emphasized the importance of looking for “what is right in the group” before working at solving the issues that need to be addressed. He showed the Dewitt Jones DVD “Celebrating what’s right in the world.” (You can preview the DVD at www.celebratetraining.com <http://www.celebratetraining.com> .)

The tear jerker for me was the Scottish Highland farmer who took great delight in showing Dewitt his weight tossing skills, which ultimately became the photo for a global whiskey ad. After many relatives across the globe saw the photo, they became intrigued and journeyed to Scotland to check out their farmer cousin in person. This led to the largest gathering of the clan in several decades, and they had a wonderful celebration. This joyous occasion started with a photograph driven by the curiosity of Dewitt Jones, and culminated in amazing connections.

Why am I telling you this?
This curiosity about visiting the farm was a huge gift to me just six weeks ago. I was attending the International Succession conference in Quebec City and I heard a young woman with a New Zealand accent asking very tough questions to the guest speaker. I approached her with my card and my book sensing that I needed to learn more from her. She responded by saying, “Elaine, when can I come to visit your farm?” I said, “How about next week?”

Her name is Mandi Mcleod, a farm consultant and New Zealand farmer. As a Nuffield scholar, she is traveling the world studying farm succession tools. Her gift to me was visiting our farm. She stayed for six days. We talked and talked, made meals for the field together, and enjoyed our common passion to make a difference with farm family transitions. We also shared coaching over a speakerphone with a farm client dealing with the tough issues of farm fairness.

While Mandi was here, she photographed the combines consuming the standing wheat, and our family sharing a meal in the field. Her artful photos captivated my Toronto audience a few days later as I shared the unique culture of agriculture. The city folks were amazed with the acres, the investments, and the risks and challenges we take in stride as farm families.

Mandi was moved when she saw the writing on the wall in our foyer: “Life is not a dress rehearsal.” This quote speaks to me, and to Mandi. As farm coaches, we are focused on making a difference by celebrating what’s right in agriculture and in families, and working on the issues that keep us from seeing what’s right in the world.

Get out and take some photos to share with friends. I’m prescribing more parties for us all. Let’s invite folks to our farms. Let’s encourage more Nuffield scholars from Canada to learn and share. (www.nuffield.ca <http://www.nuffield.ca> )

We live an amazing life. Invite someone to come celebrate what’s right on your farm. If you visit our farm, you bring the bagpipes, and I’ll do the fling. Celebrate!