Communicate, Communicate, Communicate
The old saying in real estate is that the only three things that matter are location, location, and location. To me, the three things that matter most in succession planning is communicate, communicate, and communicate.
Verbal communication between each of the generations involved is the important first step. What does the generation passing on the farm want to accomplish with the transfer. The generation receiving the farm needs to communicate their desires, goals and wants. During this back and forth verbal communication ………….
Non-verbal communication needs to be observed and dealt with. Many times, one generation will communicate to the other in words and not realize by the non-verbal communication (facial expressions, posture, etc.) received that what they are communicating is either not being received properly or is being ignored. After all parties have given and dealt with their verbal and non-verbal communication, then ……
Written communication puts it into writing. These documents are generally prepared with the help of appropriate counsel and/or consultants. However, many times, this is where it ends. To be effective, this written communication needs to be given to each party verbally including the interpretation of non-verbal communication. If all goes well, the plan will be implemented correctly and a good base will be laid to continue the plan for all generations.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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