HomeMy WebLinkAboutThe Citizen, 2005-03-17, Page 30THE CITIZEN, THURSDAY, MARCH 17, 2005. PAGE A5.
Succession planning often put on back burner
Plans for the future
Dave and Brenda Linton look over some information on
succession planning with Jeff, the youngest of their four
Children. (Bonnie Gropp photo)
By Bonnie Gropp
Citizen editor
For farmers, the work they do is
not just about making a living, it’s a
way of life. Their day begins and
ends at the job site. The land they
walk on throughout their daily
routine is their own.
Many years ago it was understood
that farming was not just another
job. but a legacy to pass on to one’s
children. The children would learn
and grow on the family farm, and
ultimately it would be passed on to
at least one of them, often with Mom
and Dad still actively involved.
However, in the rural Ontario of
the 21 st century, the average age of
farmers continues to rise. A 2001
census showed that of 85,000
farmers, fewer than 9,000 were
under the age of 35 while 32,000
were 55 or over.
Add to this the many challenges
facing farmers today and the
question remains who if anyone will
be taking over in the next
generation. One of the first pieces of
advice that succession planners give
farmers looking toward retirement is
to look at the profitability of their
operations. For many, devastated by
Managing a farm is never easy
The business of farming is getting
tougher. You need professional
advisors who are able to make sense of
the big picture, while still being able to
take action on the details.
BSE and low crop prices,
profitability is wishful thinking.
Peter Coughler an OMAF
succession planner points out.
however, that farming has always
been a capricious career. If a young
person is interested in farming, they
will find a way, he says.
But, in an era that offers diverse
opportunities to a generation coming
of age in a somewhat cynical,
detached time, making that decision
can be difficult. Dave and Brenda
Linton, who have owned a farm for
30 years, raised four children. While
they didn’t force the idea of farming
as a career choice, their children did
help out with chores while growing
up. Today daughter Stacey, 26, and
Randall, 25, both work at other jobs,
while Paul, 21, is an electrician's
apprentice. Only Jeff, 20, a second-
year student at Ridgetown College
seems to be following in his father’s
steps.
Jeff says that as a child when it
came to being somewhere he chose
to be in the barn. “When I was older
I got away from it a bit, and tried to
find other things to do, but they
never held my interest. It was always
the animals for me. 1 never felt
forced to look at farming as a career.
I just didn't have any interest in
anything else.’’
However, what he'd like to do
when he's finished school is still a
big question.
First Dave doesn’t plan on retiring
any time soon. “Not until he’s
dragged out the door," says Brenda.
Also, “it's hard to succession plan
when your kids don’t really know
what they’re going to do," says
Dave. “Until they decide I can make
all the decisions I want, but there are
four people involved besides Brenda
and I.”
Both parents think that Jeff is
interested in coming back to this
area to farm sometime in the future.
However, their son has other plans in
mind first. “He'd like to go to
Europe to an alternative pig-raising
operation through Agriventure-
International Agricultural
Exchanges.” says Brenda.
Jeff says that many of his friends
at school have parents who are
retiring and from whom they are
planning to take over. For him it is
more likely that he will be looking at
an independent operation for
himself. “If he makes up his mind
that he really does want to farm, we
wouldn't go looking, but if the right
farm came along then we would help
him out," says Dave.
However. Jeff notes, “Before I did
anything, I’d want to make sure I'm
totally interested.”
Another important consideration
for the industry is that young people
be encouraged to consider farming
as an option. While some people
who didn’t grow up on a farm will
turn to life in the country, the reality
is that most of the next generation of
farmers will be sons and daughters
of today’s.
To this point there has been little
emphasis by government on funding
that would encourage young people
to enter the industry. Cougler has
been part of a committee that is
looking at all programs to give
young, farmers the tools and
information they need to
Farm Income Crisis
Nutrient Management
Source Water Protection
Property Assessment
cMaJio-et Gaasitq,
tyedt&uziiM, cl /IrjAiculiate
Your OFA membership supports
HURON COUNTY FEDERATION OF AGRICULTURE
to inform and lobby the various levels of
government on the issues affecting you.
"tya/wneAA 'Wosdziruj, fan tya/une/iA,"
successfully take over. There is an
informative website for new farmers
a t
http://larmccnire.com/cnghsh/newla
rmer/index.htm which features
topics such as new farmer profiles,
profitable trends in farming, what it
takes to be a farmer, what grants and
government programs are available,
where to go for commodity-specific
information, business planning and
risk management; farm spreadsheets
and other software, and a sign-up for
free new farmer updates and start-up
manuals.
Farm Credit Canada offers help on
its website, www.fcc-fac.ca to help
farmers define the goals for their
operation. They also offer something
called a payday loan, allowing
farmers to gel established for a down
Carol Mitchell
MPP
for
Huron-Bruce
Clinton office is open Monday to Friday
482-5630 (1-800-668-9320)
and
Kincardine is open Tuesday and Thursday
396-3007 (1-866-396-3007)
http://www.carolmitchell.ca
Please call with any inquiries.
payment of as little as 10 per cent.
Several websites also offer advice
on seeking niche markets and high-
value products that allow farmers to
get started in a small way and build.
Some even offer advice on how to
make money on small acreages.
Coughler, who has been working
on succession planning with OMAI-
since 1999, keeps urging farmers too
get involved in succession planning
sooner rather than later. There can
be a tendency to avoid the topic
because of the emotional
connection, which says Coughler is
not the best strategy.
Determining what's important to
each generation in a farm transfer is
essential. Ask your children what
their goals are and what’s important
Continued on A6
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