From Legacy Moment (05/17/2013).
Please join us for future issues,
delivered via email each Friday.

For all of you who did, thank you for responding to last week's "Three Wishes." I sincerely enjoyed reading your feedback. However, due to the overwhelming response, it might take a while for me to get back to you.

One of the comments I received reminded me that maybe I haven't been clear about the science and art of succession planning. The process is a balance of both, though succession planning is more art than science.

The rudiments of succession planning are founded in the sciences of tax planning, financial security and legal documentation; no small feat, yet simple compared to the emotional issues. Consider the task of bringing people together to discuss money, careers/jobs, compensation, boss/subordinate, duties/responsibilities/accountability, fairness, family, etc. It's all emotion, and no one wants to go down that track unless they have some reassurance that the journey is going to be satisfying and successful.

That's where the art comes in. Starting with a defined set of shared goals and then building specific plans to help a family achieve the objectives related to operational integrity, financial security and leadership development will take the right combination of art and science.

Though not every situation is obviously or immediately solvable, there are an infinite number of solutions to the succession planning puzzle. The good news is, it's up to you.

So, what's your biggest challenge—that overwhelming concern that seems to stop you before you start? Don't concern yourself with spelling, grammar and punctuation. Your responses will not be published. Please feel comfortable writing directly to me at 'Ask Kevin.'

News & Resources for You:

"When is the right time to start succession planning?" "What if our family can't see eye-to-eye about our goals?" These questions and more are addressed in the Legacy Project's FAQs.  

Didn't find the answer you need? We're here to help.

As a complement to the Farm Journal Legacy Project, eLegacyConnect engages and encourages farm families through vital succession planning resources. Use your Farm Journal Membership Code (FAMILY) to access your 14-day free trial. 

   

 

 

 

 

From Legacy Moment (05/10/2013).
Please join us for future issues,
delivered via email each Friday.

In the interest of making sure we're providing the information, tools and resources you need to achieve your legacy dreams, if I could grant you three wishes, what would you say?  

Please take a few moments to send me a message through "Ask Kevin" on the Farm Journal Legacy Project website. In the comments section, write your three wishes. I know you're busy, so feel free to keep it brief. Just provide enough detail to help me understand your desires. Don't concern yourself with grammar, spelling or punctuation; your comments will not be published.

Thank you in advance; I sincerely appreciate your input. Your comments will help shape the resources and experiences we provide through the Legacy Project in the years to come.  

News & Resources for You: 

"Ask Kevin" is available here. Please be generous with your thoughts; your concerns are no doubt shared by other families in the ag community.

Registration is now open for July's Legacy Project Workshops! We hope to see you in Wichita, Kan. (July 22), Columbia, Mo. (July 24), or Evansville, Ind. (July 26). Click any link for details or to register.

FarmPartner is a new go-to source for matching aspiring farmers with transitioning farmers for jobs, career opportunities and ownership positions. As part of eLegacyConnect (and designed to complement the Farm Journal Legacy Project), you'll also find many of the tools necessary to create long-term working relationships and plan for succession. Take a look now (use membership code FAMILY for a 14-day Farm Journal trial). 

   

 

 

 

 

 

 

From Legacy Moment (05/03/2013).
Please join us for future issues,
delivered via email each Friday.

Freedom to choose can be an intimidating and uncomfortable responsibility. Some young Americans choose to live in a farming community and raise their families in a rural lifestyle. This particular group came to my attention via the headline, "Kansas Group Tries to Reverse Exodus of Young from Rural America."

For anyone who's been paying attention to "Legacy Moment" of late, you might recognize this recurring theme. Young people want to settle in our rural towns, and in most communities, these folks are welcomed with open arms. Not only are there wide open spaces and room to roam, the map dots across the country might be ripe with opportunity for an agribusiness owner and/or a local merchant.

The Kansas group is a community of like-minded young people who founded, "PowerUps," a social and business network that touts rural life for the under-40 crowd and lets them know they are not alone. It was founded about 2-1/2 years ago by Marci Penner, a resident in central Kansas. The website for the movement, aptly titled ruralbychoice.com, features a calendar of events, blogs posts by various members and tidbits for the curious about life in a small town.

Like my previous mentions here, the article reinforces that: "Technology allows companies to operate virtually anywhere. This works in favor of small towns, which also have the advantage of lower costs." It goes on to tout the "moral competitive advantage for companies in small towns that employ young people with rural backgrounds." It mentions their, "...amazing work ethic and strong values."

As the U.S. economy continues to struggle and people look for alternatives to the big city and corporate life, don't overlook the opportunities on the "next frontier." Check out these early pioneers and acknowledge that you're in good company. The article points out, "a lot of young people are looking for jobs that will bring them closer to their rural roots." For some it's farming, for others it's a cheese processing facility, a slaughterhouse/butcher shop, an equipment dealership or an implement manufacturing enterprise.

No matter what, there's a welcome sign and plenty of opportunity for those who choose freedom and welcome the responsibility.

News & Resources for You: 

Rural by Choice...is this a good option for your family?

AFBF's Rural Community Building offers a depth of information about growth in the nation's heartland.

As a complement to the Farm Journal Legacy Project, eLegacyConnect engages and encourages farm families through vital succession planning resources.

   

 

 

 

 

 

 

 Photo courtesy of USDA NRCS.

 

 

 

 

 

From Legacy Moment (04/26/2013).
Please join us for future issues,
delivered via email each Friday.

Well, it's permanent until they can change it. The estate tax, that is...

There was a collective sigh of relief, if not surprise, in January when the estate tax exclusion and the gift tax exemption amounts remained at $5 million. In the same measure, the estate tax was permanently set at only 40% in the beginning of 2013. Although not a perfect solution, the law allows farm families to plan for succession, anticipate the effects of the estate tax and create plans to eliminate or mitigate this onerous obligation.

But that was then. President Barack Obama's budget proposal for 2014 now seeks to use the estate tax to raise revenue by increasing the tax rate from 40% to 45%, lowering the exemption amount to $3.5 million and eliminating the inflation index, which currently applies to the exemption/exclusion amounts. Beyond that, the administration's proposal will eliminate other estate or value freeze strategies, ensuring that an assets appreciation will be subject to tax.

Keep in mind that any changes to the estate tax are only proposals at this point. It's prudent to focus on what a farm owner should do to ward off the negative effects of the tax, such as:

1. Commit to planning. Nobody wants to give Uncle Sam any more than is necessary. With enough time and some compromise, a family can minimize or eliminate an estate tax obligation.

2. Be open to options. Each situation is unique. Like matching puzzle pieces, the tools and techniques used in succession planning, especially as it applies to estate tax strategies, are not always off-the-shelf.

3. Remain flexible. Nothing is "once and done." Estate tax law will change; so will your family, your farm, the economy, commodity markets, etc. Annual reviews and continuous improvements are part of a comprehensive planning process.

4. Involve others. Through our respective communities, we have access to many other people, such as family farmers, professional advisers and subject matter experts. Learn from their experience; it might save you time and money.

5. Start now. Too many people might think, "I'll wait until [some triggering event: fill in the blank]." Or, "I'm too young." Or, "It might cost too much money." Or, "They're not ready yet." Or, any other excuse a person might gin up to postpone planning.

News & Resources for You:

Read full article: 2014 Fiscal Year Estate Tax Proposals (WealthManagement.com; 04-22-2013; Miles C. Padgett and Donald D. Kozusko).

 Remember: Estate planning is just one component of a comprehensive succession plan.

eLegacyConnect complements the Farm Journal Legacy Project. Have you taken a look? 

   

 

 

 

 

 

 

 

 

 

From Legacy Moment (04/04/2013).
Please join us for future issues,
delivered via email each Friday.

Recently, I ran across a mobile app, from an insurance company of all places, that helps consumers locate farmers markets, locally grown produce, agritainment farms, wineries and commodity-related festivals. Harvest to Hand is a simple mobile app designed to connect consumers to producers for healthy food choices.

It isn't the app that fascinates me so much as the concept and the source. Imagine how our daily lives have changed. Not too long ago, food choices (local, natural and organic) were limited to a very niche market. Today, we're using our cell phones to identify producers and find retail sales locations that specialize in this market. Yesterday, insurance companies sold financial security. Now, even these big corporations show compassion by helping customers make healthy food choices.

For me, this serves as another indication that field-to-fork is an increasingly viable, attractive and potentially profitable alternative for breaking into farming. The next frontier is quickly becoming reality and, beyond a niche for consumers, there are other forces helping to increase demand and ensure availability. Though it might always be small, to sustain a percentage of the food market will require professional farmers, processors, distributors and retailers—all of which constitute opportunity for the agripreneur.

Though I can't personally vouch for the mobile site, it looks like it might bring together a physical community, promote healthy eating and enhance the accessibility of locally grown produce. I, for one, appreciate the concept and anticipate there are or will be others. The accompanying website allows farmers, producers and event managers to post their offerings and festivals. 
 

News & Resources for You:

Is your mind wide open to new opportunities?

As you adapt your business plan, don't forget to also keep developing your leadership capabilities.

Have you started your free trial for eLegacyConnect? Give it a look! 

   

 

 

 

 

 

 

 

Photo courtesy of USDA NRCS.