No one finds joy in thinking about what their obituary will say or what will be said in their eulogy. But, if keeping the family operation in the family is a priority, then succession planning does need to be a thought that is acted upon sooner rather than later.
RetirementLiving.com’s 2025 analysis estimates that between one-half and two‑thirds of Americans die without a will. In Idaho, the USDA’s 2022 Census of Agriculture shows an average producer age of 56.6, with almost one-half of farmers now older than 55.
In a recent survey by University of Idaho Extension Eastern District, the top reasons for not making a succession plan were:
- I don’t know where to start.
- I'm worried about making family members angry.
- I don’t know professionals to work with.
- None of my family is ready to take over my role.
Let's dive into how to get started on a succession plan. Many times, succession and estate planning are used interchangeably. While they do overlap, there are some differences that we need to be aware of. Big picture, succession is the transfer of management, whereas estate planning is the distribution of assets and wealth after death. You are encouraged to begin with succession planning and then move to estate planning.
Considering the average age of farmers in Idaho is 56.6 years old, many have already experienced a succession plan when you inherited the family operation. Utilize this experience as you develop your own plan. Consider what went well. Remembering those things that made the management transition smooth and consider using those methods again.
On the flip side, think about what did not work. Make sure you do not repeat history if it was a disaster. Learn from the past.
The first step to a succession plan is to determine what you value and what goals you have for the family operation. Take some time to think this through. For most, the first question is: Is keeping the operation a viable agriculture business operated by family the goal? Or is the goal to keep the operation a viable agriculture business operated by anyone? This is your decision.
Once you have determined what you see as the goal, then you need to have a conversation with your spouse and ask what they see as the goal for the operation and the succession plan. Do you agree? If you do, great. If you don’t, have a talk and maybe lots of conversations so you can develop a goal you can agree on.
The next step is to talk to your children and ask them what they see as a goal for the operation. They may surprise you with what their thoughts and ideas are. I encourage you to really listen to what they say. Listening and asking clarifying questions does not mean that you agree with everything, it means that you are trying to understand. Spend time thinking through what everyone has shared with you. Find and write down the things everyone agrees on and celebrate that. This will be your “home plate” for further discussion. Consider the items that you don’t agree on. Think outside the box of how you address them.
Succession is about the transfer of labor, management and income. Think about this transfer as the “training” phase. As we age, we may not be able to complete all the same tasks we could when we were younger. Because of this, transferring that labor duty is easy, such as building fences, bucking bales or hauling bags of seed. It is also easy to transfer those labor duties that we really didn’t like doing like cleaning corrals, repairing the swather or checking water troughs. Transferring those labor duties we love such as swathing hay, feeding cows or checking pivots are a little harder but necessary to transfer. If we don’t transfer those labor duties, the future manager will never learn to do them.
The transfer of management is a little harder. You didn’t keep the operation viable for this long by making bad decisions. But again, think of this as a training phase. Consider turning over the management decisions for “small” things first. It could be as simple as where the hay is going to be stacked or what times will someone check the cows for calving. You are building management skills and trust with each decision you let them make.
This is easy to read and easy to say “yup, I need to do this,” but harder to get started for many. We all seem to work better with written SMART goals and timelines. Just to refresh your memory, SMART goals are specific, measurable, achievable, realistic, trackable. So help yourself get started by setting the goal to work on your succession plan. Your first goal could be as simple as “I will determine what I want to see happen to our family operation, write down and discuss it with my spouse by June 1, 2026.” You now know what you need to do and have a deadline to do it. The next goal may be “Talk to my children about their future vision and involvement in the family operation by Aug. 1, 2026.” You get the idea.
Failing to plan is planning to fail. If you don’t decide about your family operation, someone else will. That plan may not be what you wanted. But there is good news: You don’t have to try to figure this all out by yourself. There are a lot of resources available that help you determine the next step, outline what information you need to gather and how to put it all together. Your local extension office can help you find resource materials and let you know about classes.
The Idaho Department of Agriculture Farm and Ranch Center has an entire self-paced ranch succession course. Check with your banker or agriculture lending institution; they may have resources.
Sometimes people don’t start a plan because of the fear that it may not be the correct plan. That is always a possibility, and the reason that a succession plan is a working document! It is not like the title to our vehicles that once we have it, it gets put into a file someplace until you need it many years down the road when you sell that vehicle. It is more like the registration that we must look at and renew once a year to keep it current. Things change, life happens, and that is the reason succession plans need to be reviewed and updated on a regular basis.
So here is the take-home message. Set the goal with a deadline to determine what you personally want to see happen with the family operation in the future. Talk with your spouse and children and learn what their vision and involvement will be. Do some research into tools and resources available to help you with this process. Don’t be afraid to ask for help. Start today because next week may be too late.
