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Supporting the Family in a Farm Transfer
BY KEN IMHOFF, MANAGER, FARM STRESS LINE, EXTENSION SERVICE, SASKATCHEWAN AGRICULTURE AND FOOD as found in The Rural Councillor, vol.32 no. 9, November 1, 1997
The Farm Stress Line receives numerous calls from families seeking help to address farm transfer issues. Many times it is the younger generation who calls, wondering how they can begin to approach the subject of taking sole responsibility for the farm operation. The Farm Stress Line counsellor encourages the caller to focus on communication in order to make the transfer a success.
A farm transfer can be stressful, with some very important emotional and financial issues surfacing for family members. People's identity is tied up with their career. For farmers this is certainly true.
Consider the retiring generation who have lived with their work for many years, struggling over decades to build and maintain a viable operation. When retirement must be addressed all the emotions associated with detaching from a place and way of life is at play. The retiring generation is not only making a decision about their business, but also their home and their life. Feelings of insecurity associated with relinquishing the farm to a son or daughter may emerge. Being in control brings with it a sense of security, giving up control may bring about feelings of vulnerability. Parents may also feel that they are risking their financial security. Feelings of loss of control, uncertainty of the future, changes in finances and even moving to town all impact on the ability of the senior generation to make the move.
On the other side there is the younger there is the younger generation ready to take charge of the farm. They want to have control of their own future. The younger generation may even wonder if the transfer will happen. They may have spent ten, fifteen or twenty years farming along side of their parents often with no clear understanding of what their parents have in mind. Feelings of insecurity and frustration can surface from just not knowing if their hard work and loyalty will result in one day being able to call the farm their own. Like the retiring generation the new generation faces issues that may bring out a host of emotions including feelings of uncertainty of what the future holds. Other emotions that may be triggered include anxiety, worrying about being completely responsible for the farm, frustration with not knowing what the future holds and worry about being saddled with an unmanageable debt load. There is also the positive side, including the joy of achieving and feeling of self confidence and satisfaction associated with taking over the farm.
The key to a successful farm transfer is communication.
The key to a successful farm transfer is communication. The retiring generation needs to openly communicate their intentions. The children need to know and understand the concerns of their parents, including their plans for the retirement years. Children need to communicate their own goals, their readiness to manage the farm and any apprehensions related to becoming the sole proprietor or the farm business. Children need to communicate their vision of what must happen in order for them to succeed.
Family farms may involve the extended family, brothers and sisters who were raised on the farm and either are fully involved in the farm or have left the farm. Even though children may no longer be involved in the farm they often feel that their interests require attention or even protection. Brothers and sisters may expectations relating to the contribution that they made to the farm while growing up. For family members who remain part of the farm operation it is essential to discuss expectations on how the farm will be managed, how or who makes the decision and the way jobs are delegated, e.g., determining who does the books and keeps the records. To operate a successful partnership requires agreement on goals and plans. It is also important to be clear about who makes what decisions and how disagreements will be resolved. By discussing everyone's expectations, roles and goals, the family can begin to determine whether all expectations are understood and can be realistically met. Expectations that cannot be met need to be put to rest. The focus can then shift to meeting achievable goals that reflect each person's needs while allowing the farm to remain or become a sound economic unit. An open discussion can go a long way toward resolving misunderstandings and, therefore, avoid conflict within the family unit.
Getting started requires communication. Someone needs to initiate the discussion. Even a general discussion of goals and obstacles can pave the way for more in depth discussions. In depth discussion involves the development of a detailed plan for the transfer. If the farm family is having trouble getting the discussion started or is unable to make any progress it may be useful to include a neutral third party. The third party (mediator) can assist by facilitating communication and may provide objective observations leading to the resolution of difficult and sensitive issues; but mediation works best when all parties are involved and feel they are equals.
The transfer of the farm operation does not necessarily end the parents' involvement of the farm. Both the parents and the children have expectations and visions of their own roles in the farm following the transfer. The retiring generation often needs to connect with the farm for security reasons and to feel that they can provide useful support and assistance to their children. The children need to feel that they are in charge, that their parents are there to comment on every decision, but rather are a source of wisdom and support. The transfer plan is completed when everyone's expectations are known and addressed in a constructive way. Then comes the challenge of making it work.
If you are considering a family farm transfer and do not know where to start you can contact the Farm Stress Line. Our counsellors know the difficulties involved with intergenerational farm transfers, they have been there and have experienced the concerns and emotions around this major decision.
The Farm Stress Line is a toll free service available to farm people and town people who have an interest in the farming community. Farm Stress Line counsellors are active farmers trained to provide short term telephone counselling and support. The Line provides callers with support on a wide range of business issues including intergenerational farm transfers and farm finances. This service also provides confidential support on personal issues such as family violence (including abuse of seniors), suicide intervention, alcohol addiction, problem gambling, loss and grief.
The Farm Stress Line counsellors use the Saskatchewan Human Service Directory, a province wide computer assisted directory system, to refer callers to appropriate programs and services and support groups either inside or outside of their community.
THE FARM STRESS LINE
1-800-667-4442
8:00 am to 9:00 pm
Monday to Saturday
Where the meaning of confidentially is understood.
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