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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 Offering a full range of services: auditing, accounting, business planning, income tax planning, personal financial planning, computer and management services. IRRA BDO Dunwoody, llp |UL/V Chartered Accountants and Consultants PO. Box 1420, 152 Josephine Street Wingham, Ontario 357-3231 areed@bdo.ca Our fees are competitive, our service is personal. Call us today. . We’ll help you succeed.