Exit Planning - Moving from Leadership to Support
Passing the torch on the farm and ranch can be an exciting moment in agriculture. But behind that excitement is a critical piece of the puzzle, planning for the older generation to step back. Exit planning means moving from leadership to support, not only in day-to-day management, but also financially.
“So what we do as we're talking to families is we want to make sure to help the older generation that wish to get out or become a more passive role to make sure they have an income stream and yet still be around to provide that wisdom to make sure and help the people who make the big mistakes that we all did at one point,” said Alan Hojer.
Exit planning needs to begin early, often right along with succession planning, giving families time to put in place tools and strategies to support the next chapter.
“And what I find when we have proper exit planning and it's part of its mindset, part of its financial is people are more focused on their business today rather than worrying about down the road what's going to happen because we have a plan to handle it,” shared Hojer.
He says exit planning is a process, not a moment or crisis, giving a family time to chart their own course for the future.
“It's really leadership, it's leadership of the parents to the next generation in a way that that generation can be successful and support the changes in the vision that have appeared,” Hojer said.
For more than a decade, the Keep Farmers Farming program has assisted nearly 400 families navigate the transition, succession, and exit planning process.
Taken from Alan Hojer’s interview with Pam Geppert (Dakota Farm Talk)