64 and getting ready to pass the torch.

[flea beetle]

Stick around for another 10 years or so and keep your hands in the farm. Let the grandson manage one quarter his first year. If he enjoys it, let him do 2 the next year and so on. All the while explain the why’s and how’s of what you are doing. It allows you to slowly phase out while he gets to learn the ropes, and gain cash flow. Once he is comfortably on his feet, let him slowly start buying you out. You will have cash every year to live off of, and he won’t have a huge buyout to finance at the bank.

[tubs]

Our farm is in transition but we kept all the vultures out.Giving son a big equity stake and carry on.Farm is fairly debt free. Giving son the responsibilty for day to day operations.We are incorporated.

[shtferbrains]

Thanks for the advice jazz.
The first part is senseable
The fertilizer thing , not sure where you are going .
If wheat is 14 and canola 20 you fertilize to the max, right! at least this year when soil tests call for 20N
Am I missing something?

First thing you might find is that few 18 yr olds know what they want to do next week end.
Your going to have to be patient with him for a few years before he can grind out running a farm in these high dollar days.
Be hard for both of you as 18yr olds can't be expected to miss that part of life by working 100 hrs a week. If you expect him to do that I say good luck.


I don't see the money thing as a big deal if you have a corpration as I'm sure the advice will be to take some years to make it go.
Unless you plan on the bank lending him millions any you trust the government to spend a large part of it when you give it to them.


I never heard you say you have any other plans?

I'm doing something similar but will say generational transfers have less than 100% success rate.
Saw a 16 yr old kid make a good farm better.
But most BTO's got big because they arn't all sucessfull.
Up to you to make it work.
Good luck and look after that boy.

[blackpowder]

No, of course MNP doesn't necessarily need to be involved.
Any accountant with large real world experience in our industry and complex structures with current ongoing insight to the govt and its ever changing tax system will do.
A "good" lawyer necessary as well.
It can be hard to find those.
Your strategy will need to bridge some gulfs and be flexible to stand the test of time. Another checklist is the "what ifs". What if x happened to you or him.
Two thoughts of mine are, you cant control from the grave, and a promise is a prison with you as the jailer.
Your grandson is 18....
You are a lucky man.
This is one of those career paths that must get under the fingernails, in the blood so to speak. Imbibed. Over time.
Which you are running out of. Maybe.
My own genetics based on family history, and lifestyle choices don't bode well for octogenarian status.
As a planner I myself don't put all my chips on the "it'll never happen to me" strategy. A nice dream/goal though.

[Old Cowzilla]

Size of farm needed for new family to live is a big question and it seems a lot of farms even very big ones have multiple revenue streams. You can tell the kids what did work and what didn't work. BUT keeping an open mind to new ideas is a must in these changing times. At 62 I hope to help my son and daughter in law a few more years during the switch. Different ball game for them , not once since 1978 did I ever worry about seed, fert ,chem , fuel and parts shortages. Stressfull times indeed

[Tucker]

Farm succession planning is usually very involved. In Manitoba there used to be Farm Planning Specialists from Manitoba Agriculture who would meet with a farm family and assist them. Perhaps Saskatchewan has something similar. Otherwise, MNP has seminars on the topic. I know I've been to a couple over the years. That helps with getting an idea what you want to do, and how to do it. Once you've got a general idea of what you want to do, then a good accountant can help with it, and at some point you'll likely need a decent lawyer as well.

It is great that you're starting to make decisions at 64, as it isn't something that you want to rush into, and it often takes a lot of time.

[jazz]

The skip a generation thing is a bit worrisome and the age of the grandkids.

I was working with my dad at 18 and raising hell in town on the weekends. LOL. Not exactly responsible material until he sold me a half section at age 24. That focused me pretty fast.

[V Belt]

We got Jensen Stromberg in Saskatoon to handle our succession plan. Tyler is the fellow we worked with. Told him what we had, what we wanted, and he gave us the options and consequences tax wise. Your situation very much like ours by the way. Good luck!

[foragefarmer]

How involved are his parents going to be?

You mention your daughter has a good business head. That would be great asset when it came to buying inputs, marketing and book keeping.

The grandson would then focus more on labor, operating, repairs, agronomics etc etc. You would be the over looker in that regard. He'll need as much help as you can give him in the first few years.

As stated by a few, an 18 years old hormones can take over. Not to mention at 18 who doesn't want to party on the weekends and chase girls at that age. Remember you have to keep in mind that your grandson will only be young once.

The other question that comes to mind do you have any other children, who are considered in wills regarding the land and and farm assets.

I would not transfer or sell any land to him the first couple of years. See how it goes during that time frame. Give him a salary of percentage(crop share) of the profits, all along making him pay a percentage of the expenses are well.

You will have to be extremely patient with him, all along remembering he is only 18.

All the best to you in the transition.

[Taiga]

I wouldn’t push an 18 year old straight into a full time farming career.
Would at least encourage him to get a skilled trade training (welding or electrical, etc) or a useful degree, and get 10 years minimum real world working experience before farming full time. Too many reasons to list.