The Rural Voice, 1999-10, Page 46samples taken at a depth of six
inches. This represents the depth
where plant roots are taking up the
majority of the nutrients. Soil below
this "plow layer" tend to be lower in
fertility. Deeper soil samples will
give a false reading, therefore
inaccurate recommendations.
Other things to consider when
deciding what defines each sampling
area are the past field history of such
things as previous fertilizer
applications including manure
spreading patterns, previous crops
and yields, topography, slope, tillage
practices, etc. In a reduced or no -till
system, nutrients tend to concentrate
near the soil surface. You should
still sample to the six-inch depth to
determine your P & K requirements.
To determine soil pH, a separate
sample taken of the top two inches in
acid soils will be useful.
There are currently five accredited
Soil Test Labs in Ontario: Accutest
Laboratories in Nepean, Agri -Food
Laboratories in Guelph, A & L
Canada Laboratories in London,
Stratford Agri Analysis Inc. in
Stratford and Analytical Services,
Dept: of Land Resource Science at
the University of Guelph. Each lab
has met the Ontario Ministry of
Agriculture, Food and Rural Affairs
(OMAFRA)'s standards for soil
testing and will provide OMAFRA
recommended fertilizer rates, if you
request them. OMAFRA
recommended rates are based on
research to produce the highest
economic yields when accompanied
by good or above average
management. Sample kits and
submission forms are available from
any OMAFRA office.0
Ontario
Agri -facts
Did you know?
More than 1,200 food
and beverage producers
are located in Ontario —
more than 45 per cent of
food and beverage
processors in Canada!
42 THE RURAL VOICE
Advice
Do's and don't's of
farm succession
planning
By Peter Coughler
OMAFRA, Port Perry
Farm business succession
planning, or the transfer of farm
business to the next generation, is
very important to ensure the
continuation of a family farm
business. Unfortunately, it is also one
of the hardest topics to broach for
farm operators. It involves a piece of
themselves. It is emotionally
charged and tends to lead to
avoidance behaviour as a strategy to
deal with it.
Do's
1. Start planning now. It is never too
early to start thinking about
succession.
2. Look seriously at the profitability
and viability of the farm business. If
it is not making money now, what
can be done to make it profitable.
3. Communicate openly with all
family members at all times about
plans, strategies, issues and
problems.
4. Develop a long-term vision of
what you want to have happen to the
business and then plan towards this
vision. Write it down.
5. Address the issue of fair
(equitable) vs. equal division of the
farm early in the process, especially
if there are off -farm family members
involved.
6. Prepare a Legal Will. You want to
see your estate settled a• specific way.
However, if you do not have a will,
the court will decide for you.
7. Get a "quarterback" involved
early. A quarterback is someone who
understands the big picture of farm
succession. The family members
must feel comfortable working with
this individual.
8. Work with the "quarterback" to set
goals, communicate openly, and plan
the transfer of labour, management
and leadership. Develop a general
plan for the transfer of assets.
Remember, it is the family's plan,
not the quarterback's.
9. Once you have a clear idea of how
you want the transfer to take place,
enroll a team of professional advisors
(lawyer, accountant, financial
planner, banker, etc). It is a good
idea to bring everyone together to
discuss and fine tune the plan.
10. Consider the tax implications but
don't emphasize this as the only
thing. The goal should not be to
avoid paying any tax. It should be to
determine the best process to transfer
the farm and still have it viable,
while considering the tax
consequences.
Don'ts
1. Don't procrastinate and put off
discussing succession. Start talking
about it now.
2. Don't feel that the succession plan
has to treat all children equally. Fair
does not necessarily mean equal.
Farming children's labour and
management can be considered as
"sweat equity" and they will need
some help getting established. Off -
farm children should consider some
of the benefits they have received,
such as a university education, etc.
3. Don't be afraid to ask lots of
questions. Listen carefully to the
answers, even though you might not
like them. Consider the advice of
different experts.
4. Don't assume you know how
others feel about the process or what
they want to achieve from the
succession plan.
5. Don't hold onto control of all
aspects of the business except the
labour. "Successor development" is
developing the skills, abilities and
knowledge of the next generation.
Both generations will need to work
together to ensure the transfer of
labour, management and assets.
6. Don't feel both generations must
have the same values. There may be
differences in views on certain
aspects, such as debt or taking time
for leisure activities.
7. Don't be a martyr.
8. Don't define your life as the
business. There is more to life than
work, such as family, friends, leisure
enjoyment, hobbies, etc.
9. Don't put all your eggs into one
basket. Plan ahead, think early about
retirement, and make off -farm
investments so that you will have