SCHOTMAN FAMILY Schothorst

Farms Ltd.

Working toward the goal line

It’s been 17 years since Gary Schotman started farming full-time alongside his parents, Henk and Truus. From an early age, Gary knew he wanted to farm, and that his parents were invested in helping their children realize their goals. Over the years, the family has navigated the process of farm succession, working at their own speed, and achieving milestones that make sense for their family and business.

In 2008, the farm was incorporated, creating Schothorst Farms Ltd. This allowed Gary to officially enter the business as a shareholder, preserve the farm equity and establish a basis for a future succession of ownership. “Dad and I have always been able to work well together, and the process of continuously becoming more involved in farm management, coming together to build consensus, and eventually shifting authority from my parents to myself has allowed me to grow into the business and mature as I learned,” says Gary, who now has a family of his own, and looks forward to sharing what he’s learned with the next generation of Schotmans.

Incorporation was a sound business decision for the family, but Gary notes the business model also means shareholders must work together and make decisions together. Those decisions range from animal care and farm equipment to upgrades or renovations to the family home that is owned by the corporation. “No matter the topic of discussion, we all know we have to be willing to compromise and work together,” he says. “We are all accountable to each other and the farm.”

Every farm is unique, making the succession process its own experience for every farm family, and individual members. Gary admits the process hasn’t been easy, and they’ve had struggles along the way. The Schotmans have engaged a variety of farm advisors to support their succession planning, including accountants, financial advisors and advice from farm service providers. Gary says that for advisors to help, it’s important to trust and be honest to enable everyone to see the full picture of the farm’s intended future together. “Everyone around the table may not get what they want, but they need to know how each other feels so you can move forward,” says Gary. “No one wants animosity and we all want to be able to enjoy Christmas dinner together.”

Like many farm families, Gary’s parents have been focused on being fair to all their children. As the oldest and most interested in the dairy farm, Gary was involved in the farm incorporation. Recognizing incorporation as successful transition tool, Henk and Truus have since supported their other two children in establishing their own farms by building corporations with each of them. “The farm business is always changing, and what’s fair isn’t always equal so my parents found a way to help each of us get established, and we are all grateful,” says Gary.

Today, Schothorst Farms Ltd. is in its final stages of succession, transitioning ownership to Gary. Henk and Truus are still active on the farm but are taking time to get away with their RV. Gary credits early planning and open, honest conversations as the keys to success of their family’s succession.