Program details

Simon Durand - Executive Director, UCFO

Simon Durand is native to Huntingdon, Québec. After graduating from the Economy and Agri-food Management program at l’Université Laval, he spent five years working as an agronomist for a number of economic development organizations where he was involved with several small and medium farm businesses. He excels in marketing local products and agritourism. Since 2007, he has been the Executive Director of the Union des cultivateurs franco-ontariens (union of Franco-Ontarian Growers) and the Agricom journal. His mandate is to mediate between public authorities and the government in order to represent francophone agricultural producers in Ontario. The improvement of services provided to farmers, the importance of francophonie in a minority environment, and the general public’s appreciation of the farming industry are his main focuses. In addition to his duties as an Executive Director, Mr. Durand puts his knowledge of Agri-food management and marketing into practice with his wild boar ranch in the Gatineau area of Québec, which is continually expanding. He has been managing his farm he has named the “Sanglière de l’Outaouais” since 2006.

 

Where is Canadian agriculture heading? Between part-time and large-scale agriculture…the effect on farm succession

Making comparisons with your neighbours to better understand your position is always fruitful. Having access to reliable Canadian data on a national, regional and local scale makes it possible to establish comparable benchmarks for agricultural businesses: structural changes, indebtedness, profitability and the degree of dependence on government support. How do the major Canadian regions compare? What teachings can we learn in relation to farm succession?
 

Daniel Mercier Gouin

Daniel-M. Gouin earned a PhD in development economics from the Université des sciences sociales de Grenoble [University of Social Sciences, Grenoble, France] in 1987 after receiving  his undergraduate degree in agronomy and his Masters in rural economics from Université Laval, Quebec City.

Since 1988, he has been a professor with Université Laval. He is  now Chaire d’analyse de la politique agricole et de la mise en marché collective [Chair of Agricultural Policy and Collective Marketing Analysis] and Chair of the Département d’économie agroalimentaire et des sciences de la consommation at Université Laval, Quebec City. His areas of specialization include analysis of governmental agriculture interventions and collective marketing of agricultural products. His recent work has focused on the analysis of evolving agricultural policies in developing countries in the context of WTO multilateral negotiations.

 

Edouard de Sainte Maresville

After having obtained his degree in agricultural engineering from the École Supérieure d’Agriculture de Purpan in France, Mr. de Sainte Maresville became an agronomy professor at an agricultural secondary school, as well as Chargé de mission at a departmental agriculture and forestry directorate.

Since his election in 2004, Mr. de Sainte Maresville has been Chargé de missions at the Assemblé Permanente des Chambres d’Agriculture, an agricultural council group involved in the sustainability of the performance of agriculture and farmlands. These councils are working at defining and implementing balanced agricultural policies that safeguard the general interest of the farmlands and networks.
 

Support for transfers – the producer and the consultant

The Chambres d’agriculture (agricultural councils) are statutory bodies managed by elected representatives who represent all players in the agricultural and rural world. Their goal is to work toward the sustainable performance of agriculture and farmlands. Their competencies, which draw on observation, attentive listening and innovation, are focussed on improving the economic, environmental and social performance of farm businesses. They are mobilized, in particular, around the theme of starting in agriculture.

With the goal of facilitating young producers’ access to national, departmental and regional assistance and of adapting to an increasingly diversified public, a new guide for those starting in agriculture was put in place. Mr. de Sainte Maresville will discuss this tool in detail, providing examples of successful implementation of it in a number of countries across Europe.
 

Profile of a transferable farm: when and how to start the succession process?

The succession of a farm business is a complex process that extends over a fairly lengthy period. Experience has shown that the earlier the preparations for the succession are begun, the better are the chances of having a business that is transferable. But what is meant by “earlier”? When should the succession process begin?

The average age of producers is constantly rising in Canada and their rate of replacement is constantly declining. Hence, the importance of identifying the conditions that make for a successful farm succession and the factors that are unfavourable to one.

Lastly, tangible actions enabling producers to put all the chances on their side in order to have a transferable business, if they so desire, will be identified.

Caroline Collard - FGCAQ

When I was 13 years old, I already knew that I wanted to be a management advisor in an agricultural council group. The daughter of dairy producers, I grew up in an environment where at the time the management and budgeting of the business was carried out with the Agri-gestion Laval team, and the agricultural management pool (Syndicat de gestion). It is thus my belief that farm management is essential if entrepreneurs are to achieve their goals.
 
Having graduated in agro-economy from Université Laval in 1991, I worked for Agri-gestion Laval and then as an agricultural training instructor before joining the Chaudière-Etchemin agricultural council group in 1996.

With a team of professionals in the regions, we conduct many activities and provide services for our clients who, in large part, are involved in milk production, as well as those in maple syrup, cattle and poultry production.

The Beauce is a dynamic region in terms of agriculture, and more than 75% of the producers in the region do business with us each year. We promote teamwork and multidisciplinary work with our regional colleagues.

I am involved with the REGA (Réseau d’expertise en gestion agricole / farm management business network) as administrator and representative for those with 5 to 15 years of experience. I also sit on the advisory services committee and on CRAAQ’s economic reference committee.

As a manager, I believe that all producers have their own particular talent and that it is up to us to help them best express that talent.
 

 Brigitte Paré - CRÉA

Before joining CRÉA (Centre régional d'établissement en agriculture – Regional Centre for New Entrants) in 1995, Brigitte Paré was trained as a criminologist, working in human relations among a wide variety of clients including female victims of abuse, young delinquents, and drug addicts. Currently, Brigitte works with farmers, primarily undergoing farm succession, but also in many other aspects of agriculture that involve personal relations and human interaction.

As the wife of an agricultural producer who manages a dairy farm in co-ownership with his brother in Thetford Mines, the succession scenario along with interpersonal challenges of a farming family lifestyle are all too familiar to Brigitte Mrs. Paré involves herself in farm tasks whenever possible and encourages her four children to also help around the farm. “I noticed that a lot of young people are interested in taking over because they followed their mother to the barn,” she says. She wants her children to have enough experience on the farm to make an informed decision on succession if and when the time comes.

During her practice, Brigitte Paré has hosted numerous workshops and conferences for the agricultural community. In addition to having worked with businesses in farm succession, she has also worked with merging projects and has spearheaded many family councils in order to promote the continuity of the business. Her practical experience is part of what makes the content of her presentations so compelling. She is known for her straightforward way of speaking and invigorating anecdotes that ensure a bright and lively audience! 

 

The exiting generation- revenue planning and diversification- what is the incoming generation's role?

Bill Brown’s presentation will take you through the roles that both the exiting generation and the incoming generation play in a farm transfer.  Succession planning needs to be viewed as part of personal financial planning and needs to be started decades before the actual transfer is to take place.   The exiting generation will receive information on revenue planning and diversification while the incoming generation will learn the importance of knowing their role, goals and objectives. 

The exiting generation must determine which of their objectives is most important to them, whether it be their retirement lifestyle, treating all the beneficiaries fairly, or keeping the farm business active.  Brown will outline the circumstances in which each of the three objectives is most important and then when all objectives are equally important.  He will teach you how to calculate how much money is needed to enjoy the type of retirement lifestyle you wish to, that treating beneficiaries fairly does not necessarily mean treating them equally, and how to pass on your farm business to ensure it will remain operational.  He will also describe options when all three objectives seem equally important. 

The importance of knowing each generation’s goals and objectives is stressed and communication is the key to a successful transfer.

Bill Brown - Professor, Agricultural Economics, University of Saskatchewan

Bill was born and raised in Winnipeg, Manitoba. He earned his BSA degree in agricultural economics from the University of Manitoba and an MSc degree in agricultural economics from the University of Alberta. Bill has been teaching and conducting research in the Department of Bioresource Policy, Business & Economics at the University of Saskatchewan since 1978. His teaching and research interests are in the areas of farm and agribusiness management, planning and finance. He has supervised over 60 undergraduate groups completing agribusiness plans and numerous graduate students at the MSc level. dealing with agricultural issues throughout Saskatchewan and Canada. He has also been involved in agribusiness training and development projects in China, Kazakhstan, the Kyrgyz Republic, Guatemala, Mongolia and Mexico.

 

Track #1 - « Animal »
Ferme Larijol - Goats
184 1er rang ouest, St-Gervais, Québec
www.larijol.webs.com

Louis Jolin and Micheline Larrivée acquired their farm by non-family transfer in 1988 and for over 10 years continued with dairy and swine production. In 2000, their farm business took a different turn when Louis and Micheline sold their milk quota and bought a herd of 63 goats. The couple then modernized their facilities and expanded their operation to 1,000 goats, of which 500 are mature milking goats. They are now just starting the farm transfer process with their son who will be the next generation for the farm!

Ferme No-Chan Inc. – Dairy
Bruno Vermette
Chantal Ruel
Saint Gervais, Québec
 

In May 1999, Gilles Vermette et Micheline Langlois transferred the farm business they had started in 1970, to their son Bruno and his wife Chantal. Both graduates of l’ITA de La Pocatière, Bruno and Chantal were able to benefit from “la subvention à l’établissement” (a Quebec program that gives grants to agriculture graduates when they start having shares in a farm), and from quota for young producers taking over a farm (another Quebec program). Upon taking over the farm business, the couple began modernizing the farm, buying quota every year. In 2009, Bruno and Chantal received certification from the Canadian Quality Milk program and registered for Holstein Canada’s Consulting Service Program to ensure the continuous improvement of herd genetics.

Today the farm has a total of 105 animals (60 are producing milk), 65 kg/day of quota, 251 acres (186 acres are crops), and a 1250 tap sugar bush. Parents of 4 children, Chantal and Bruno are starting to look at farm transfer so they can be ready to plan for the transfer and future farm expansion.

Track #2 - « Plant »

Ferme Monna et Filles – Black Currant
721, chemin Royal, Saint-Pierre,
Île d’Orléans
www.cassismonna.com

In 1992, Monna et Filles was the first producer of black currants in Quebec. Mr. Monna, originally from the south of France, was the owner and operator of the business. In 2002, his 2 daughters joined the business and started a restaurant. In 2005 they became majority shareholders in the company. The same year, their black currant cream won gold in a European contest held in Ljubljana, Slovenia. In 2009, production of alcohol and syrup made from black currant jumped from 15,000 bottles in 2002 to 35,000 bottles. The estate benefits from a microclimate that is ideal for the production of black currants. The current operation occupies 5 hectares, which could soon increase.

Ferme Onésime Pouliot Inc - Maraîchers
505 Chemin Royal
Saint-Jean-de-l'Île-d'Orléans, QC

In 2001, the Pouliot brothers, Guy and Daniel, partnered to take over their father’s farm, Onésime Pouliot. As one brother was a graduate of agronomy, and the other graduated in business administration, they combined their knowledge to restructure the farm and went from summer strawberry, potato, small grain and pork production to sweet potatoes, summer and fall strawberries and diverse production of lettuce, snow-peas, blackberries, cantaloupes, summer and fall raspberries and blueberries. 

Guy and Daniel Pouliot haven’t stopped expanding and modernizing their business and now depend heavily on foreign labour (almost 70 workers during the busy season). The brothers have been acknowledged on many occasions for their entrepreneurial qualities and are planning more development with the help of their parents, who they know they can always count on.

 

Mickaël Pollion

Occupation: Farmer and Assistant Executive Director, Jeunes Agriculteurs (JA) [young farmers]
National mandate: 2008 – 2010
JA portfolio: Organic farming / Promoting the occupation via salons
Training: BTS ACSE (Analyse et Conduite des systèmes  d’exploitation) [analysis and operation of operating systems]

In addition to his agricultural activities in the Pas de Calais (62), Mickaël Poillion has been a passionate union supporter since 2004.
In his town of Héricourt, Mickaël Poillion operates a 175 hectare area with his associate. He grows grain, beets and also produces milk. A portion of his products are organic.

Before being elected to office, Mickaël Poillion was the executive director for the North region (2007). Two years earlier, he was executive director for the department. His areas of interest: economic organization, the Common Agricultural Policy, and setting up young people in farming.

About Jeunes Agriculteurs:
Jeunes Agriculteurs is the only professional union made up exclusively of young people under 35 years of age (50,000 members distributed among decentralized consultation and decision making structures). Driven by a spirit of solidarity and friendliness, JA’s goals are to defend the interests of young farmers and to encourage access to the occupation of farmer in order to ensure generational continuity in agriculture.

Cooperatives (equipment and labour): how they help with succession and start-ups

For young farmers, the turnover of farming generations is crucial to food sovereignty and to the vitality of the land. The first key to success is a political will to protect agricultural activities. The second, and equally important, is the capacity to welcome and coach project leaders within the generation at work. Sharing means of production is a perfect example when solidarity mechanisms are in place between generations.

 

H. J. (Tom) Thompson, Ed.D - President, Olds College

H.J. (Tom) Thompson, President of Olds College since 2001, is passionate about excellence – whether in leadership, post-secondary education, community service, athletics or life-long learning. During his tenure as president of two Alberta colleges, Dr. Thompson has drawn on a rich background in education and sports-related coaching, marketing and management. He is currently working with government, industry and communities to achieve the Community Learning Campus (CLC) goal of a seamless and integrated learning environment, one which will help rural students remain in rural Alberta.

Starting as a Saskatchewan public school teacher and principal in the mid-1960s, Tom changed his career direction to athletics in the mid-1970s. Over the next decade, he held head coach and front office management positions with university and professional sports teams, including Director of Public Relations for the Saskatchewan Rough Riders, Vice President of Marketing for the USFL’s Michigan Panthers and Director of Marketing for the Calgary Stampeders Football Club.

A life-long learner, Tom completed a Master of Education degree in 1976 at the University of Saskatchewan and completed his Ed.D in education administration at the University of Calgary in 2008.  His fifteen years at Grande Prairie Regional College, beginning in 1986, culminated in positions as Vice-President of Academic Affairs in 1996-97 and the next year as the College President.

A strong supporter of the Association of Canadian Community Colleges (ACCC), Tom has held positions on the ACCC’s Executive and Board of Directors and currently chairs the Alliance of Rural Colleges Leadership Council, responsible for the bi-lateral agreement developed between Canada and USA rural colleges.  Other advocacy roles include past Chairperson of the Council of Presidents for the Alberta Association of Colleges and Technical Institutes, founding Vice-Chairman of eCampus Alberta, Canadian representative at the UNESCO Conference on Re-engineering Technical Vocational Education in China and President Elect for the Post-secondary International Network.

Dedicated to community involvement, Tom was proud to serve as President of the Host Organizing Committee for the 1995 Canada Winter Games held in Grande Prairie. He has also served as board member and chair of numerous organizations, including the Chamber of Commerce, Alberta Special Olympics Board and the Hockey Alberta Foundation. In an advisory role, he has contributed to several Alberta Ministers’ committees on issues such as Rural Development, K-12 Learning Outcomes, Post Secondary Transformation, and Veterinary Medicine Academic Preparation.  His many speaking engagements at national and international events have helped to broaden awareness of Alberta’s post-secondary initiatives and best practices.

 

A Rural Canadian Model for Lifelong Learning and Community Sustainability

Traditionally, the logic of competitive advantage has turned on access to natural resources, access to low cost labour, and access to capital. In an information age those three elements are available to both urban and rural communities. It therefore puts a premium on other ways in which to differentiate and sustain your community in a rural setting and in the next generation economy. It begins with the development of a vibrant learning community.

Thompson’s Top Eight Vibrant Learning Community Imperatives

The top eight learning community imperatives facing rural communities:

1. Changing landscape of rural education
2. Creating effective partnerships
3. Developing a culture of collaboration
4. Supporting living and learning with technology
5. Building a community of learners
6. Creating a rich learning environment
7. Strengthening schools through community partnerships
8. Sustaining education programs

Using the development of the Community Learning Campus (CLC) as a model, this presentation will highlight the aforementioned top eight learning community imperatives facing rural communities.

Bringing to life the vision of the government’s policy direction for rural sustainability, the Community Learning Campus is a unique fusion of educational innovation and rural community development for lifelong learning.  The promise of the Community Learning Campus is to create a seamless transition to the workplace, apprenticeship, college or university for all learners.  Comprised physically of a core high school, health and wellness centre, fine arts and multi-media centre, and the eLearning core, along with access to other community-based facilities and other rural sites, the Community Learning Campus provides access to a wide range of programs and services for high school, post-secondary, community, and business and industry learners in their home communities.

 

Biography of West River Holsteins

Jack Thomson, Rhonda MacDougall, and their three young sons are owners of West River Holsteins, in Antigonish, Nova Scotia. The farm is 600 plus acres, with a herd of close to 300 Registered Holsteins. Although Jack is a seventh generation farmer, and both he and Rhonda grew up on dairy farms, their story actually begins outside the family, with the farms previous owners – the Corsten’s. It was always their intention to milk cows, however, limited personal savings, high quota prices, and limits by lenders with respect to debt per kilogram were major obstacles to entering the industry. As such, the road to farm ownership included positions in Government, Consulting and as a Sire Analyst. The opportunity to purchase the Corsten farm came in 1998 after 19 months of negotiations, numerous concessions, and strong willingness by all parties to see the farm continue successfully by a new generation outside the family.

Since 1998, Jack and Rhonda have been busy building their farm, their family and their involvement in the agricultural industry. In 2004, they were honoured to be one of Canada’s Outstanding Young Farmers. In 2007, their facility and much of the herd that they built up was destroyed by fire following a lightning strike. This winter, they began milking in their new facility – beginning a new chapter for the family and the farm.

 

The story behind the farm establishment of Alison Brosseau, agr., on the Robert Douglas Kyle Inc. Farm

Since I was 14, I had always dreamed of becoming an agrologist and running my own farm. Having completed an applied Bachelor of Science degree from Université Laval, I became an agro-economist in September 1997.

In 2006, four years after being initiated to the work on my spouses’s, Robert Kyle, family farm, I left my position as an agricultural account manager at Desjardins to establish myself on the farm. Despite a work accident that resulted in the amputation of one finger, I remain convinced that I have made the right choice; our farm business enables me to achieve total personal fulfillment.

Robert and I are the fifth generation on the farm. We cultivate more than 400 hectares of grain corn, corn silage, soya beans, forage and newly certified (2009) organic strawberries. We are also raising Black Angus feeder steers, hormone and antibiotic-free, for a niche market. RDK Inc. could not do without the income derived through custom work (spraying, seeding, seed production, harvesting, hay baling and wrapping).

Our principal objective is to ensure our business’ sustainability and growth by developing new techniques that enable us to increase its financial efficiency. Over the past seven years, nearly three million dollars have been invested for this purpose.

 

Green Atlantic Farms

Franck Groeneweg grew up on a 500 acre grain farm in central France and went to work on an Iowa farm at age 19.  He immigrated to North America and began an import/export business while working for a local farmer.  Franck met his wife, Kari, from Alberta while she was studying elementary education at a Christian university in northwest Iowa.  Following marriage in 2000, the couple made several trips to Saskatchewan, investigating operations with a sufficient land base to sustain a family, and quality farmland close enough to a major center with expansion potential.  In March 2003, they sold their tractor parts business and purchased 12 quarters with 1830 acres of clay loam, 30 minutes NE of Regina SK.  In 2004, they expanded their land base to 3200 acres and were hit with a devastating frost which destroyed quality in a low commodity price year.  With record quantities of feed grain available, Franck & Kari started custom farming and began a grain burning stove retail business.  Optimism returned in 2006 and over the next few years, the Groenewegs increased their land base to its current 10000 acres, of which 2600 is owned, 1800 rented and 5600 custom farmed. Crops grown include: spring wheat, durum, winter wheat, barley, canola and peas. They have also experimented with soybeans, corn and winter canola and have been proactive in on-farm research projects. Franck & Kari are parents of 3 children: Luke (5), Julia (3) and Emma (1).

 

Ferme Piscicole des Bobines inc.

The family-run, fish-breeding farm of Ferme Piscicole des Bobines inc. is a good example of how to transfer a business from one generation to the next. The farm, the largest fish-breeder in Quebec, also boasts the largest site for trout-breeding in the province.  It aims to create ecologically-sound conditions for breeding, thereby supporting sustainable development and innovation while still offering a product that is healthy and nutritious, and of exceptional quality and taste.

Clément Roy is the son of owners Normand Roy and Doris Brodeur. Clément Roy serves as director of production, quality supervisor at the factory, manager of the business, and leader of research projects and development. He joined the business in 2005 after completing studies in administration (at the college level) and university studies in law. His studies in environmental and agricultural law have allowed him to become deeply involved in the business and to contribute to its development.

Clément Roy is one of the award-winners of the “Tournez-vous vers l'excellence” contest sponsored by the Financière agricole du Québec.  In 2007, the business  won the award “Lauréat Agroalimentaire”  as well as “Entreprise de l'année ” offered by the Excel competition run by MRC of Coaticook.
 

 

Multi-family business models. Sharing skills and assets to create better opportunities

Entitled ‘Multi-family Business Models – sharing skills and assets to create new opportunities’ this workshop aims to have participants think about their own situation and explore opportunities by which they might increase the size and profitability of their businesses through cooperating with other farming families. This presentation is based on research work done at the University of Exeter where the author interviewed hundreds of farming families and visited a number of farming businesses in the UK owned, tenanted and operated by two or more families.

Farms are handed down to the next generation but not without problems as in many cases heirs suffer from loneliness, the dirtiness of the profession, hands tied over decision making and the fact that farming sometimes cannot provide sufficient income. Although by no means a panacea for solving these issues, family-to-family cooperation may provide some if not all of the solutions.

This presentation examines the principles behind horizontal cooperation, different types of models to suit different situations, principles behind agreements, the importance of a common vision, the ability to be interdependent and the fact that any agreement must include the values and visions of the participating individuals. It takes real life examples of farmers who have in some cases dynamically expanded their operations by using their assets and skills to achieve greater efficiencies and improved lifestyles.

John Hambly

John Hambly is a consultant in Rural Development and Agriculture.

Originally from a farming background he was educated at Wye College, University of London where he studied Agriculture. His professional areas include ISO 9001:2000 auditing (Certified 2008), Dairy, Beef and Sheep Farm auditing for Farm Assurance purposes (Certified 2008), HACCP training, development of agricultural producer groups/associations and agricultural marketing organizations. He was a Senior Research Fellow at the University of Exeter, England, where he became well known as an expert on farmer to farmer cooperation issues, in particular joint venturing between dairy farmers. Many of these joint venture models offer realistic opportunities when thinking about succession planning. He has more than twenty years of agricultural development experience and apart from working in the United Kingdom he has worked in St Kitts & Nevis, Croatia, Russia, Georgia, Kazakhstan, Kyrgyzstan, Turkmenistan, Latvia, Ukraine and Jordan.

 

Grow your emotional intelligence (EQ); reap a successful transfer. Find out why emotional skills lead to success during a business transfer.

Your emotions: your best allies or worst enemies during a business transfer?

When a transfer is being made, the fiscal, legal and financial plans are often given careful consideration. However, it is increasingly acknowledged that when business transfers fail, the causes can often be attributed to human dimensions. According to a number of specialists, emotional competencies apparently can be up to twice as important as IQ and technical knowledge in explaining an individual’s success in business.

Emotional competencies are defined as “the ability to use one’s emotions and those of others in certain situations in order to attain one’s personal and/or professional objectives”. An individual who knows how to sense and manage his/her emotions and those of others makes the best decisions, brings his/her projects to realization and gets along better with others.

The domains in which emotional intelligence is applied are many, including decision-making, communication, conflict management, team mobilization and family relations.

During this conference, we will learn which the key emotional competencies are, how and why use of them can provide leverage in a business transfer and how the lack of these competencies inevitably leads to a failed transfer.
 

Pierrette Desrosiers, M.Ps. Industrial Psychologist, coach and speaker

Pierrette Desrosiers is the first work psychologist and coach to specialize in the field of agriculture. She is interested in the many human challenges faced by families running farm businesses.

Brought up in a farm family and the spouse of an agricultural producer for more than 20 years, Pierrette Desrosiers has always been interested in the field of agriculture. Her years of work with agricultural producers have enabled her to note the dizzying increase in stress and psychological distress among agricultural clients, and moreover have shown her the urgent need to address this wide ranging problem.

A compelling and original speaker recognized throughout the agricultural field, she stands out for her rigour, her humorous approach and the relevance of her words. Her innovative approach, her humour and her ability to make a real difference in the lives of those she meets make Pierrette one of the most valued agricultural speakers, both in Quebec and Canada.

Her conferences and workshops draw individuals interested in self-management and interpersonal relationships. In them, Pierrette Desrosiers encourages the development of both “know-how” and “knowing-how-to-be” (social skills) in the context of a humanized agriculture. 

 

Models for non-family and non-traditional transfers: New ways of transferring farms and establishing yourself in agriculture

For many, succession planning is a daunting task, however it is quickly becoming a reality for many farmers as one generation reaches retirement and another prepares to take over the farm business. 
While traditional farm business succession is seen as transferring the farm from one generation to the next – typically from parents to children, what happens when your farm business does not fit the typical model? What are some alternative methods for transferring the farm business?

The face of agriculture and that of the farming family are changing – succession planning can be adapted to meet these changes and new industry challenges.

In Models for non-family and non-traditional transfers: New ways of transferring farms and establishing yourself in agriculture, Gerard Fitzpatrick, FCA, TEP, will talk about innovative models for farm transfer for both those transferring the farm business and new entrants to farming - whether starting from scratch or taking over a farm.
Gerard will share his own experience in innovative succession planning techniques and draw from these and other examples to demonstrate how you can be innovative and look outside of traditional models for solutions that will work for your farm business. He will also explore how to choose a succession plan that best meets your priorities. Does it meet your needs? Does it meet the new entrant’s needs? Does it reflect reality? Do the economics balance with the interpersonal relationships, family goals, and farm business goals? What is your basis for decision-making?
 

Gerard Fitzpatrick, FCA, TEP  

Gerard has 33 years experience in helping farmers, fishers, individuals and businesses on PEI.

Gerard recently founded his second Chartered Accountant firm of his career. Fitzpatrick & Company opened on June 13, 2008 at 135 St Peters Rd, Suite 202, in Charlottetown. His Partner is his son Michael and the firm has as its focus: growth and succession.

His designation’s as a FCA and as a Registered Trust and Estate Practitioner (TEP) has served will in the area of succession and estate planning for individuals and companies.

Gerard was born and raised on a PEI farm. He and his wife Bernie have four children and three grandchildren.
 

 

Evaluating the contribution of business heirs: Establishing fair value for investments made prior to transfer

If there are no heirs who will operate the farm family business, an equal division of the assets is perhaps a fair method of distribution of the parents’ assets.  However, when one or more of the heirs have worked in the farm family business and thereby contributed to the wealth accumulated by the owners how is the heir’s contribution to the wealth of the owners to be valued?  Further complicating the matter is the fact that such contribution may be made in several ways.  For example the farm may have expanded its asset base, added or retained an enterprise, or invested in facilities that the owners would not have otherwise done had the heir or heirs not returned to the farm business.  The heir, involved in the business, may have invested in facilities that are located on the owners land and are therefore the property of the owners. 

Often times, as the owners’ age, the on farm heir is the provider of other services such as maintenance of the parents’ house, transportation, shopping, in home health care, management of the owners’ farm business and other items.  These are necessary services that are required and clearly have a value. If the parents were to purchase such services and pay for them at the time they are received it would diminish the value of the estate.  It is unfair and unreasonable to expect the on farm heirs to provide such service without fair compensation.

How then is the value of the contribution of the in business heirs to be calculated.  Of course, every farm family business is unique as is every farm family, thus there can be no one answer to the question of valuation.  The Beginning Farmer Center at Iowa State University has developed a case study and spread sheets to initiate the conversation concerning valuation.  The spread sheets are not a formulaic decision model rather they are intended to assist in the calculation of a value for such contribution.  The case study and spread sheets provide an example and a process to begin quantifying the contribution and are intended to be used as a starting point for the decision on this important issue.  
 

John R. Baker, Attorney

John R. Baker is the Staff Attorney for the Iowa Concern Hotline, an information and referral service of Iowa State University Extension Service.  In 1991 he created the Farm On project which links farmers and landowners with beginning farmers.  He has helped to establish similar linking programs throughout the United States.  He is a founding member and current President of the International Farm Transition Network that assists in the development of new linking programs.  Baker developed the AgLink seminar for college juniors and seniors who are returning to farm family business and for their families.  In 1995 he created the Farm Savvy manual which contains material on the transition of a farm business to the next generation.  The AgLink seminar and the Farm Savvy manual have been adopted by many organizations throughout the nation.
 
In 1999 he and the late Professor Andrew Errington, University of Plymouth, Seale Hayne Faculty, England, co-founded the FARMTRANSFERS international research project on farm succession and retirement.  The FARMTRANSFERS survey has been conducted in several Canadian provinces, several States in the United States, numerous European countries, Japan and Australia.

Baker has written numerous articles and gives talks throughout the United States on the farm family business succession planning.  He has lectured in Canada, England and Japan.  He emphasizes the necessity of understanding connections between people, the law, succession planning and the farm family business.  He earned a Bachelor of Science degree in Business Administration, a Masters of Business Administration and a Juris Doctorate from Drake University in Des Moines, Iowa.