This week Paul Neiffer has a conversation with Ken McCauley from White Cloud, Kan.
McCauley now officially considers himself a part-time employee on his family’s 4,500-acre row crop farm. His son, Brad, has taken over the operation.
The transition wasn’t a quick or easy one. McCauley’s first crop was in 1973, and he went through a transition from his dad and separation from farming with his brother. Those lessons were top of mind when Brad returned to the farm 20 years ago.
“So many people have given me opportunities over the last 50 years that I wanted to give that back to my son or anyone else we can,” McCauley says. “I think a lot of families don’t see the value in that.”
McCauley admits the beginning of the transition planning was painful, but the hard work has paid off. He and his wife, Mary, are constantly updating and reviewing their plan to be fair to Brad and their off-farm daughter.
“Everything we’ve ever done has been to keep the land we have together,” McCauley says. “That’s what we plan to do with our entities—keep them intact. The big deal for me is there’s enough profit so each of our kids are happy.”
Neiffer says the biggest error farmers make with their estate planning is procrastination.
“Even a wrong decision, at times, it better than no decision,” Neiffer says. “If you make a wrong decision, you can fix it.”
“You need to do something, even if it’s wrong,” McCauley adds. “Once you get it on paper, it’s a good move. But realize you’ll need to make changes.”
Listen to the podcast episode:
Listen to additional episodes of the Farm CPA Podcast:
Episode 6: Dick Wittman and Cori Wittman Stitt from Idaho
Episode 5: Roric Paulman from Nebraska
Episode 4: Dave Nelson of Iowa
Episode 3: Jim Wiesemeyer, Pro Farmer
