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how to exit a family farm
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lorenk
Posted 9/14/2010 14:36 (#1359335 - in reply to #1358519)
Subject: RE: how to exit a family farm


Grand Rapids, MI
loctite - 9/13/2010 22:13

as a younger farmer, i dont' know what has worked for all of you in the past. i'm stuck with a grandfather with "old school methods". he wants me to make up his mind for him. i 50\50 his ground, and don't want to see him in a bad spot. i'm in a half and half partner ship with my dad on equip., but we keep our ground seperate. dad's opionon (buisness\personal) vary to the point of arguement latley. it's to the point that i need to leave. how should i take my equip, or can i still share and make it work. i also wonder if you as a potential land lord would discredit me(as in not rent to me), based on my situation or decision, i would still like to grow.


First let me say I agree 100% with those that have said we don't have NEARLY enough information to give you any sort of informed advice. What is interesting is most of the posters that said that went on to give you theirs.... This board can be a valuable resource, but you only get out of it what you put into it. Things like a lack of any capital letters and not spell checking do indicate to people that you have not put much time into your post, so why should they put in much time helping?

But...to the question at hand. You may want to consider professional help in this matter. There are a number of good consultants that can help both with the family/interpersonal side of the issue and the business side. As a consultant I deal with both, but probably am stronger on the business side. I can recommend someone else if the problem is more interpersonal. I will not offer any specific advice here other than that, but will give you some insight into the process you can take if you want to try this on your own or at least get a head start on working with a professional.

I would be careful taking any advice here based on the limited information anyone has. Many have told you to "suck it up" but frankly I have seen times when it is better for the family to separate the business. Sometimes it is better to separate the business than to take both the business and personal relationships down because the parties can't agree on the business side. That being said, unless you are 5,000 to 6,000 acres (I am assuming Illinois corn & soy farm) there likley will be a significant cost to owning and operating two seperate sets of equipment, etc. Above all you want to approach this with a professional attitude. Set up meetings to discuss things don't just hit each other in the middle of doing something else. Take your time, be deliberate and don't make rash decisions that leave people in a "bad spot" as you say.

Here are the steps I use to work through this stuff:

The first step is to identify the areas where you don't agree. If all parties can come to the table and understand what they disagree on and understand the position of the others that is a HUGE first step.

The next step would be to determine if you can go forward with your current or some sort of a modified business arrangement based on agreeing to disagree.

The next step is documenting the agreements that are made, and yes I am talking about words on paper here. The process of documenting something serves multiple purposes. The first is to make sure that everyone actually does agree. It is one thing to talk for a while and think you agree, it is another to be able to get it written down. Very often in the process of writing we may find the parties actually were thinking two different ways and not actually in agreement. The second main purpose is to have something to go back to and remind you of what you agreed to.

The final step is to get things implemented the way it was agreed. Everyone needs to follow through on their commitments, ASAP.

My e-mail and contact info is in my profile if you want to discuss this on a professional level.

Good luck,
Loren
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