Farm Succession Conference 2002

Farmers say professional advisors need to do more and advisors agree!

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The succession conference heard from a number of farmers who are working on succession planning and all agree that professional advisors such as accountants, lawyers and lenders, need to make changes to the way they do business to better meet producer needs.

A number of top advisors were quick to agree and offered ideas on how to be of greater assistance.

Both sides agreed that using professional advisors is essential for a successful succession plan.

Don't be pushy!

Retired Quebec farm manager Serge Desbien who ran his farm for 27 years told advisors that being pushy and only interested in selling a product or service, without any regard for what the farm family wants is a ticket to losing business.

Click here to view Mr. Desbien's PDF presentation

Desbien, whose farm succession plan is now complete, said "The more these people put on the pressure, the less comfortable we were and the more we backed off."

His advice: respect the producer's pace and make your information clear and understandable. Present a range of solutions and options and the consequences of each and then respect the choice that is made by the client.

Alberta farmer Henry Hays, who is a partner with his son and daughter-in-law, agreed that advisors need to be patient. But he added that "families cannot do it on their own," and need advisors who will take the time to listen.

Ontario farmer Chris Buchner, still in the process of building a succession plan, said advisors should offer checklists to help organize the necessary steps.

Other farmers said it comes down to trust and some do not trust professional advisors. "Even if it's free, they won't go for it" and "You cannot expect farmers to sit down with a bunch of suits who will tell them how to run their lives" were two comments made.

There were suggestions for how to build missing trust.

Clarify roles and communicate

Carole Spooner, Director of Succession Services for Meyers Norris Penny, a leading agriculture accounting firm in Western Canada, said families get confused about the role of experts. "We need to clarify our roles for them so they know when they need a lawyer, accountant or lender."

Click here to view Ms. Spooner's PDF presentation

Spooner feels that the consulting side of the business has done a poor job of explaining exactly what it can do for farmers in transition.

But there isn't only a lack of communication between the professionals and their clients. She said professionals also need to speak more with each other. "As advisors we need to work better with each other. Traditionally, professionals do not share information with one another about mutual clients. I always document the succession plan and then share it with other professionals being used by the family."

Also missing, Spooner contends, is a "human touch." Professionals are trained to exercise technical and analytical skills that can lead to a "sterile" approach. "We need to deal more with the softer, personal issues and be sensitive to them." After all, she pointed out, succession is stressful. (In one recent survey, 22 per cent of respondents described succession as a very stressful issue).

She urged her peers to always be honest with clients. "Many clients say they want the planning to be simple, inexpensive and treat all children equally. But we need to tell the truth. Succession planning is anything but simple, is normally expensive to devise and implement, and economic equality for everyone is virtually impossible to achieve."

In the end, she insisted that if advisors are sensitive to family issues, a rewarding and positive experience can result.

Other advisors who participated in a panel discussion agreed that changes are needed. They acknowledged that advisors can sometimes add to the stress by overwhelming people with too much information.

Why farmers are reluctant

The conference heard many reasons why farm families do not initiate a farm succession plan. Procrastination is high on the list.

Farmer Hays was half through his succession plan when he ended up in the hospital staring at a priest and announced, "we'd better get this succession process moving." Today, recovered from ill health, he jokes that he hopes the process will keep on moving because the final phase is "when I die."

The lack of willingness to admit death is a major reason many farmers delay succession planning, but there is more to it than that.

Many identify so strongly with their farm that the mere mention of giving it up provokes an angry response. Serge admits one regret: "I did not keep a few small woodlots in my name just to maintain a link with the farming world and soften the blow of losing my identity."

For Chris Buchner, the signs to start succession came slowly and naturally. "My 13 year old asked if we moved off the farm, could she have the house. I was buying some shoes and noticed that I liked the softer version. And I took an eye test and found out I needed glasses. The realization that a succession plan was necessary came gradually."

Click here to view Mr. Buchner's PDF presentation

There are some compelling reasons that may make succession planning desirable. "Tell any farmer that most of their assets will end up in the hands of the government if they don't do something and they'll get moving," was one suggestion at the conference.

Others implied that succession planning is one of the most caring things you can do for your loved ones because the lack of a plan in the event of sudden death can result in confusion and destroy families.