Hello, northeast Ohio. As farm families, we often get the proverbial cart before the horse when it comes to succession and estate planning. We want to jump into the details of wills, trusts, business structures, transfer on death affidavits, probate, tax mitigation and how to divide the assets fairly before examining the long-term succession goals of the family.
In my Aug. 24 column, I shared the first two phases of a process called Appreciative Inquiry which can be used in succession planning. The foundation of the AI process is collaboration. It builds on the positive aspects of a business rather than focusing solely on its problems and weaknesses. This approach can be a valuable and positive method for families as they plan for the succession of their farm to the next generation.
As a recap, the Discovery Phase allows the family to take a look back at the farm’s successes and positive moments throughout its history. This is then followed by the Dream Phase which has the family work together to envision the future they want for the farm. If you would like to learn more about these phases, you can access the previous column at farmanddairy.com/columns/a-new-approach-to-farm-succession/787379.html.
Today, I would like to build on the previous discussion and share the final two phases of the appreciative inquiry method. So, let’s take a quick look at these phases.
Design phase
During the design phase, the family creates a concrete farm succession plan based on the positive aspects and the shared vision identified in the first two phases. The focus is on designing a transition that leverages the strengths, values, capital and human assets of the family business.
Action plans are developed, including a step-by-step plan for training the next generation. This involves outlining roles, responsibilities, timelines and decision-making structures. This phase is often the toughest as the family has to navigate some tough conversations and potentially address some “elephants in the room.” This phase also includes meeting with your financial, legal, tax and farm advisors to examine which tools and methods can be used to accomplish both your transition and estate plan goals.
Destiny phase
In the destiny or implementation phase, the family starts to execute the succession plan. This usually involves transferring ownership, management responsibilities, and knowledge from one generation to the next.
It is important for families to keep the lines of communication open to address any challenges or to make any needed adjustments. The goal is to stay focused on the plan and adapt as necessary. Remember, the implementation of a farm succession plan may take 5 to 10 years. Make sure to celebrate milestones and successes along the way.
Workshops
OSU Extension will be hosting a series of workshops across Ohio to help your family examine and appreciate the legacy of what has been (discovery phase) and then envision what might be and dialogue about it (dream phase). This will then lead to the family working collectively to plan what the future will be (design phase) and then implement the plan (destiny phase).
These workshops will be held Nov. 29 in Brown County, Dec. 7 in Mercer County, Jan. 19 in Columbiana County, Jan. 26 in Champaign County and Feb. 2 in Seneca County. Each of these workshops will be held from 9 a.m. to 4 p.m.
Additionally, we will be offering an online version of this workshop on the four Monday evenings in February (Feb. 5, 12, 19 and 26) from 6:30 to 8:30 p.m. via Zoom. The appeal to the online workshop is that you can learn from the comfort of your home.
Details about all these workshops including the registration fee can be found at go.osu.edu/farmsuccession. If you would like to learn more about how we can help you, just drop me a line at marrison.2@osu.edu or access our website at farmoffice.osu.edu.
Final thought. To close, I would like to share a quote from Billy Graham who stated, “The greatest legacy one can pass on to one’s children and grandchildren is not money or other material things accumulated in one’s life, but rather a legacy of character and faith.” Have a great and safe day!
