Farming Business

Breaking Up is Hard to Do…Firing Your Advisors

Tuesday, January 18th, 2011

In March I spent time with 70 farmers in Alberta who were seeking new ideas on how to do a some tough things right, like transferring the farm to the next generation. One of their biggest challenges is finding an financial advisor, tax specialist and legal professional who they can trust. They are wondering if they are being well-served by their current team of advisors, as some folks are not getting clear answers to their questions, and sometimes don’t know what questions to ask !

The song says “breaking up is hard to do…and I know, I know that it is true…” I think is it hard to fire your advisors, because we live in small towns, have to drive further for more options, and we are a loyal bunch. Continue reading Breaking Up is Hard to Do…Firing Your Advisors »

Tags: Business Planner, money, profitable farm
Posted in Farming Business | No Comments »

Gifts Your Farm Team Needs

Thursday, December 30th, 2010

Beekeepers are a very friendly and warm bunch of folks as I experienced them at their annual convention in Edmonton last month. They are dealing with issues that threaten their livelihood and like grain farmers, the weather really does a number on their business.

As I was flying over Saskatchewan I was really saddened to see the sod covered in so much water that it looked like muskeg, not the prairies I am used to. I suspect that many of you are anticipating a long winter of stress and indecision about how to get ready for next year, and how to face the financial crunches of 2010.

Buying gifts is probably not a fun activity when dollars are tight, so let’s consider some gifts your farm team needs that won’t cost money. They will cost you time and intentionality.

Here’s some ways to encourage the heart of your business:

ACT: Start the conversations about the tough issues that are eating at you and keeping you up at night. When I speak about farm transfer and succession I hear from folks who are so worried about family tension, they aren’t sleeping, and that means they are not able to make well-rested well-conceived plans for everyone’s future. Mark a date on your calendar that you are going to set aside for personal reflection and another date to invite the farm team to have dialogue.
Agenda of Concerns: Set aside some time to meet in a safe, neutral spot with an agenda. You need to be intentional about setting up a business meeting to take the pulse of your emotional climate of your farm team. Use a soft object like a stuffed toy as the talking stick, so that the person talking holds the toy and gets to speak, uninterrupted. I bet your accounting firm has a stress toy you could use as a talking stick. It’s a good idea to let your advisors know your big picture idea of getting more clarity for the vision of your business team. If tensions are high, you might want to hire a facilitator or coach.
Journal: Figure out before you meet what you really want to accomplish. When I ask families what they want for Christmas, the usual answer is “I don’t need anything”, and then they are thankful for what arrives on the 25^th of December. Be brutally honest with yourself. What do you really want as encouragement to the heart of your business? Do you and your spouse want the same things or different? Continue reading Gifts Your Farm Team Needs »

Tags: Farm Families
Posted in Farming Business, Uncategorized | 2 Comments »

GREED vs FAIR FAMILY PRICE

Tuesday, December 28th, 2010

“I am leaving the farm business. I can’t take the indecision anymore. I was hoping for a fair ‘family’ price for buying out my Dad, but he wants ‘fair market value’”. A long pause on the phone line, I as the coach am letting the silence do the heavy lifting (Susan Scott’s term). This farmer has invested almost 3 decades with his family business and now he is cutting his losses and leaving.

Greed is defined as an “excessive desire, especially for wealth or food.”

You may have your own definition of greed, and I am very sure you know a family story about the ill outcomes of excessive desire to control a farm or demand too much money from the next generation.

I see greed rear its ugly face when families cry out for support as they watch the non-farm siblings come home to roost after the death of the bachelor uncle. They are looking for their share of the gold with no regard for the sweat equity or intended roll-over to the younger business partner.

Fear of not having enough money after 75 is another common scenario, especially if the one holding the assets has a ‘rags-to-riches’ story. Even J.K. Rowling, the billionaire writer of the Harry Potter series confessed to Oprah that she still worries sometimes about money!

Many farm folks wish they had a pot of gold or a fairy god-mother to bestow more cash flow into the farm business after the tough weather disaster they’ve faced this year. Continue reading GREED vs FAIR FAMILY PRICE »

Tags: family, Farm Succession, farmer letting go succession conflict resolution, money
Posted in Farm Succession, Farming Business | 7 Comments »

GET READY TO BE A GREAT FARMER

Friday, December 24th, 2010

Will the farm be profitable for the next 30 years?

The outstanding young farmers that I meet in my travels provide great stories and hope for agriculture’s future. This month I’ll be meeting with a group of young dairy farmers in the Okanagan as a followup to a meeting with their parents last winter.

Both generations on the farm are typically very hard working. I get lots of insights on what other young farmers might be thinking when I listen to the young farmer, our son, at our kitchen table.

Last night we were chatting about “sub-soiling” because the excess water on the Prairies has been tough for many folks who didn’t get a crop in, can’t get the crop out and are having severe cash flow crunches.

I think Morris Dorosh in his “If you ask me” column in Agriweek on September 20 really nailed this year when he said, “It takes nerves of tool steel to get through an experience like this without long-lasting effects. The strain on families and personal relationships is extreme, a test of character that most people never have to pass.”

Character counts.

The Outstanding Young Farmer Awards announcements are glowing reports of young couples who possess strong character. They have “gotten ready” to do well in their chosen field. Continue reading GET READY TO BE A GREAT FARMER »

Tags: Business Planner, farm family business, farm stories
Posted in Farming Business | 3 Comments »

Managing your Marriage in the Muck

Friday, December 17th, 2010

As I write this on September 3^rd, we are stalled with a large harvest due to bothersome rains. Those of you with more muck than crop are saying “wish I even had a harvest.” And the farmer from Margo Saskatchewan with 12,000 unseeded acres is wondering how to get the land ready for next year! Not fun.

We’ve gone through this before in 1999 and 2005, but for some folks this year is the most extreme challenge. My concern is for the family foundation and resilience that holds things together even under enormous external stresses.

We can’t stop the rain or cause fields to dry up overnight. We can choose to find ways to cope, and hope.

This summer I’ve had conversations with farmers and ranchers looking for hope to keep up their passion of agriculture and re-ignite the passion of their marriages. I remind them that if their spouse is the most important part of their life, how are they putting that into action?

Farms under financial strain due to poor crops and looming debt payments can still succeed IF the folks involved pull together as a team and keep talking and listening to each other. Continue reading Managing your Marriage in the Muck »

Tags: farming family, profitable farm
Posted in Farm Family Coaching, Farming Business, Uncategorized | 3 Comments »