In this episode of the Progressive Dairy Podcast, learn how to set your star employees up for success as they transition into a supervisor role. Dr. Bob Milligan joins host Kimmi Devaney to chat about easing stress during this leadership transition, getting buy-in from other employees as their peer becomes their supervisor, skills that are essential to work on before transitioning into a leadership role and much more.

In a conversation with Matthew and Mike Flaman of Chris-Adie Holsteins, it’s obvious that their cows are top priority. Terms like “cow flow” and “cow comfort” pepper their descriptions of the operation. With an average of 38-40 litres of milk per day, the Holsteins of Chris-Adie are well cared for.

The challenges facing today’s dairy farmers are vastly different from those of previous generations. Rising costs, environmental regulations and technological advancements have created a complex and competitive environment. For the next generation poised to take over family dairy farms, financial literacy is not just an asset; it is a necessity.

Running a multigenerational family business is no small feat. Passing on a successful operation where multiple generations are motivated to work, take risks and raise their families is yet another feat. But each is possible, even highly likely, by following this blueprint for motivating the next generation.

One of the key fears of aging farm founders is the conflict they anticipate when the farming heir has access to millions of dollars of land and the siblings who are off to other careers do not have the same net worth opportunity in their future. Or do they?

Working together, the family was able to have discussions about how the farm could utilize its cash flow to find a combination of saving, borrowing, insuring and gifting assets to nonfarming children at the optimal times to have maximum impact on their lives while also having a minimal impact on farm operations.

When it comes to farm versus household accounts, separate checking, savings and other accounts can safeguard business funds from personal ones, allow farms to monitor farm spending more easily and assist with recordkeeping of the farm’s finances.

Family business succession that builds family relationships and continues to perpetuate a successful business requires attention, time investment, deliberate planning and communication.

If the story you tell yourself suggests it’s nobody’s business how you spend your money, ask yourself how you got there and why it has to be like that. I hope you would agree with me that the emotional factors around money affect the farm transition process.