New Book Addresses Farm Succession By Jake Putnam A new book called The Farm Whisperer by David Specht helps ease the difficulty of passing the family farm to the next generation. The trend of aging farmers is worrisome because as retirement numbers climb, the question of who takes over the farm looms large. These transition questions, if left unanswered directly affect the survival of the family farm and even the nation’s food supply. “The problem is that the average age of farmers is almost 60 years old and many farmers have not addressed transition issues. The transition of ownership is one of the big challenges agriculture must address this decade, and it needs to be addressed sooner than later,” said Specht. Specht says farmers are often worried about market conditions and day to day operations. He adds that incorporating the younger generations is also a delicate process because of the sensitive nature of family finances. “I wrote the book to address those issues, everything from the challenge of shared ownership to the transition of handling over the reins,” Specht said. “In generational farms traditionally parents have gifted ownership equally amongst kids. Whether they are operating the farm or not, we address that and it can be touchy.” Specht’s book has tools that can act as that third party saving attorney fees and letting families keep the succession issue in the family. He also built an iPhone App that addresses the issue. “I’ll give you an example, from a lending perspective, how willing is the next generation to personally take-on the debt of the family farm? That’s a question I like to ask every family member as the senior generation works on their estate plan. If we don’t have a future generation willing to take on
the risk then we should not position those individuals for ownership,” added Specht. Because of these challenges, Specht developed, “Ten Inspired Questions for Perpetuating Generational Farms and Ranches.” What does it mean to be a (insert your last name)? Farms/ ranches can be legacies in communities, being in families for three and four generations. Starting the discussion with this question, gives a good basis for families to see where there is common ground and where there are differences. What is the biggest unknown regarding the future of your ranch? Different generations will answer this differently so this is a way to start discussion and learn about common views and differences. What is or would be the hardest thing about being a parent and an owner of the ranch? The younger generation has the opportunity to learn about the concerns and challenges the senior generation worries about. It may be debt, who will take over the ranch, or how will they let go when it is time to turn things over.
What do you perceive as the biggest challenge regarding shared ownership in a family ranch? If the senior generation suddenly passes on and leaves the ranch for example to all three children - the son who is home on the farm and the two daughters who left after college and live in the city - how does the next generation sort this out? The parents were trying to be fair to all their children but the children may have different expectations, goals and interpretations of sharing. What is your comfort level with having to See FARM SUCCESSION page 22
Idaho Farm Bureau producer / JUNE 2016
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