Family farms have historically contributed to the foundation of our country’s economy, but the family farm is in danger of extinction. The following statistics predict a looming crisis in Canadian family farms:
- 78% will face transition in the next 10-15 years
- 120,000 farmers will turn 65 within the next decade, transitioning $50 billion in farm assets
- 70% have done no succession planning
- One of the keys is starting early – the earlier the planning begins, the greater the number of options
- The difficulty is to separate the assets on retirement or death in a way that is equitable yet doesn’t compromise the viability of the farming operation
- Preserving family harmony and the continued success of the business are the essential objectives of good succession planning
- Failure to plan can lead to significant business problems such as the sale of farm assets to settle an estate, as well as aggravating disharmony within the family
Thoughtful discussion, wise planning tools and a shared commitment to a sustainable future can prevent the deterioration and inevitable loss of the family farm.
Please join me here to read about issues, concerns and solutions to the challenges facing Canadian farm families.
I appreciate your comments and input.
Georginal Knitel
