3 Transition Planning Tips You Won't Want to Forget
There’s no shortage of transition planning advice floating around the ranching industry and for good reason. Each operation requires a tailored approach to most effectively pass down family values, natural resources, genetics, buildings and equipment to name a few items on the list.
Personally, I find myself in what I view as a unique situation in the transition planning space. I call myself a fifth-generation rancher because that is how many generations of ranching knowledge has been passed down to me and I grew up working alongside multiple generations. But my parents aren’t on the family homestead, they started their own place neighboring my grandparents. Separate operations that often helped each other daily.
This is a different dynamic than my husband’s family. We currently live on the family centennial farm established in 1914. The legacy is passed through the same house and land through each generation.
Throughout these experiences, three pieces of advice have stuck with me the last 5 years. This advice applies to all generations but more specifically to the next generation waiting in line whether that’s at age 50 or 15.
1. Do you actually want the family farm?
Before agreeing to anything, families should discuss if they actually want to operate on the family operation or if they want to farm and ranch while being close to family?
Taking over the family operation is an ideal that’s pushed as the only means to continue a legacy. That’s not the case. Legacy can be continued by taking what you’ve learned from the family operation and applying to non-family operations or starting a new one.
Additionally, it’s important all generations understand where each person fits in the operation if at all based on interests and skill levels. In some instances, there may not be a place for every family member.
Knowing the answer to these questions helps continue the legacy on and off the original homestead and improve family relationships.
2. Financially plan for the unknown.
Transition planning would be easier if we knew exactly when and how it would happen, but that’s not life. Financial planning finds its place in the unknown.
The rising generation can work with financial planners to prepare for both family and non-family transitions by utilizing a variety of savings and investing opportunities. Finance experts can guide ranchers in how to best utilize both short and long-term investments for each ranch’s individual goals and family scenarios.
There’s no shortage of risk in agriculture. Financially preparing reduces some of this risk when opportunity arises.
3. You don’t get to change what isn’t yours.
One of the most challenging components of being the rising generation is having an overabundance of ideas without being a decision-maker. A mentor of mine once told me, “You don’t get to change what isn’t yours.” This advice made me take a step back.
The current generation poured their literal blood sweat and tears into the operation. They own it. They did the work. They get to make the decisions. They need to be respected for that.
This advice also pushed me to think differently about my role. I started asking myself the following questions:
What do I own? What decisions can I make in these areas?
If I want more say, how can I take more ownership?
Do I want the risk that comes with more ownership right now?
Do I want more ownership on the ranch or would a side-gig satisfy this desire?
If I want ownership on the ranch, realistically, when will that happen?
This advice also allowed me to let go of the responsibility I was holding for the future of the operation I didn’t even own. It pushed me to trust those with more experience and focus on the controllables in my life.
These three pieces of advice are short tidbits of a long list, but they’ve had an immense impact on my mindset about transition planning. Listen to my full perspective on the Casual Cattle Conversations podcast.
