Best Management Practices for your Farm Planning
Best Management Practices for your Farm Planning. I’m Greg Martin with today’s Fruit Grower Report.
Succession planning is one of those things like insurance that everyone needs to consider but no one wants to jump right in. Michael Stolp with Farm Credit Services says there are three questions to ask yourself as you start transition and succession planning for the family farm.
STOLP: Where has your business been? Where is your business today? And where do you want your business to go in the future?
He takes a look at some of the things you can do for your family business.
STOLP: The first thing that you can do is build a history timeline. If you’ve never done this before this is a very simple exercise that can have a profound impact on your business. Then, where is your business today? You know I think as you bring in family members to your business it’s really important to level set and understand “what’s our baseline.” What’s our baseline? What’s our business coming into and moreover, what are those things we are doing right and are we doing the right things?”
Stolp says they are big users of the SWOT analysis. Strengths, weaknesses, Opportunities and Threats.
STOLP: Strengths and weaknesses are internal, you can control them. Opportunities and threats are external. When you are in a succession planning scenario it is very important that both senior and junior generations sit down and take an objective look at what are the strengths and development areas of the business as well as the opportunities and threats.
He suggests that you give this to each person to do individually and even ask your lender, your attorney, your accountant and others that have input into your business. More tomorrow.
That’s today’s Fruit Grower Report. I’m Greg Martin on the Ag Information Network.