Farm Transition and Succession Pt 1
From the Ag Information Network, I’m Bob Larson. Farm succession and transitions are a challenging topic that takes a lot of preparation.
And, Tim Cobb, the Owner and President of Spokane-based Farmland Company, says there are different types of transitions …
COBB … “There's two that are most important. That's an operational management transition as well as an ownership transition, and those items don't normally happen at the same time. When you talk about day-to-day operations as young people are coming into an organization, they should get an opportunity to manage and do a few things that will allow them to make some choices. Maybe control some budgets, or potentially also sell some grain, and do things like that.
But for owners, Cobb says it could take longer …
COBB … “On the other side, there's that ownership transition that might come later, but it also might include other stakeholders. And so when you're talking about succession, there are lots and lots of things to consider, and ownership transition normally takes a little bit more time.”
The length of a farm transition will depend on several factors …
COBB … “It is not unexpected for us to see something take between five and eight years.”
Tune in tomorrow for more on moving your farm from one generation to the next.
Or, for more on transitioning to the next generation and finding expert help, go to www.asfmra.org.
