Sep 17, 2014
Home| Tools| Events| Blogs| Discussions| Sign UpLogin


Leave a Legacy

RSS By: Kevin Spafford, Legacy Project

Kevin Spafford is Farm Journal’s succession planning expert for the Farm Journal Legacy Project.  He hosts the nationally-televised ‘Leave a Legacy’ TV, facilitates an ongoing series of workshops for farm families across the U.S., and is the author of Legacy by Design: Succession Planning for Agribusiness Owners.

What If?

Nov 15, 2011

iStock WheatFrom Legacy Moment (11/11/2011).
Please join us for future issues,
delivered via email each Friday.


A few months ago, I wrote a ‘Leave a Legacy’ column for Farm Journal entitled "How Safe Is Your Base?" referring specifically to a farmer’s land base. Since most farmers rent more land than they own, the tenant-landlord relationship can be a big concern. Farming operations, equipment purchases, and numerous fixed costs are based on acres farmed. So any factor that jeopardizes stability can be expensive, and any ground lost (due to a sale, competition, etc.) might be irreplaceable.
 
In the column, I wrote, "Most landlords are committed to farming and are intensely interested in knowing their farm will continue to be productive into the future. There is a lot of mutual benefit in establishing a long-term lease, a buy/sell agreement, an option to purchase and a funding mechanism for the purchase.
 
"Your landlord wants: 

    • Financial security, a return from the land.
    • Good stewards who will care for the land as their own.
    • Satisfaction from a good working relationship with a tenant farmer.  
 
You may want:   

    • Financial security, assurance that land is available at a fair price.
    • A well cared for piece of ground that will yield the very best returns.
    • Peace of mind knowing that your base is safe and your operation can grow.  
 
You and your landlords should act as strategic alliance partners in your farming operation---with each partner committed to the health and welfare of the operation."
 
In the Legacy Project Workshops, I illustrate a concept we call the Legacy Landlord Program. It is a service we suggest to our succession planning clients. In the program, we facilitate a discussion between tenant and landlord. We promote a long-term lease, an option to buy and suggest a funding mechanism.
 
Is this win-win solution a good fit for you?
 
News & Resources for You:
 
A family focused on taking constructive action will achieve succession planning success.  Our newly updated succession planning tools menu may help.
 
The Legacy Project 2011 Report is chock-full of information and resources, and the entire issue is available online.
 

 

  eNewsletter Sign Up Legacy Pioneer Badge 300px
FaceBook Logo
 
 
 
 
 
 
 
Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.

Receive the latest news, information and commentary customized for you. Sign up to receive Dairy Today's eUpdate today!

 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions