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Who Really Owns The Family Farm?
University of Nebraska’s Ron Hanson poses tough questions about family farm transfer.
SAN ANTONIO, TEXAS (Feb. 2, 2005) — The issue of farm family transfer is never an easy topic to discuss, and University of Nebraska professor Ron Hanson told Cattlemen’s College® attendees he wasn’t there to make friends during his session on the topic. “We’re going to cover some things that many people don’t like to talk about,” Hansen said. Learning to communicate some of those taboo topics is essential to transferring the family farm from one generation to the next.
Hanson, an ag economics professor and a leading authority on the difficult subject of family farming, said one of the biggest challenges facing agriculture is identifying “who” will be the next generation of family farmers. Many families don’t work together to find solutions to pass the farm to the next generation, he added. “That’s a critical issue.”
Hanson reported that the common perception among parents today toward their adult children is this: “You can buy the farm, but just remember that I still own it.”
“This sends the message to children that the parents’ are still in charge,” Hanson said. “Passing ownership on is one thing; passing control on is another. There’s a world of difference between the two.” He advised parents to start recognizing that.
Hanson said he’s witnessed the scenario time and again: Without communication and a written plan, the issue of passing the family farm from one generation to the next will split families. “Don’t be naïve. If mom and dad don’t do it, how many families do you know that could sit down and work things out when the parents are dead and gone?”
His advice:
1) Parents are in charge and need to be responsible and initiate the transfer process. Talk about different scenarios and what would happen if one parent/spouse died, remarried, etc.
2) Fathers who work with their adult children need to wear two hats on the farm — that of boss and that of Dad. In turn, adult children need to recognize those two roles and realize it is a difficult position. Parents should praise their children where credit is due, rather than providing only criticism.
3) Children should never feel obligated to return to the farm if their career interests or dreams lie elsewhere. “If the opportunity is there and children have it in their heart, someday they will come home,” Hanson said.
4) Finally, Hanson said once parents have made decisions for a future plan together, they need to communicate that to all family members — which includes in-laws and adult children who have moved away from the farm. The plan should be presented as a “we” by both parents to minimize division between the family, and children should be given a chance to discuss their feelings about the plan so issues can be resolved.
“The key is to plan ahead, start discussions early. It is the responsibility of the parents,” Hanson added. He suggested getting help if needed and making certain the plan is in writing. “If families don’t have things discussed, written down and communicated, it can — and does — destroy families,” he said.
For more information contact Ron Hanson at rhanson1@unl.edu.
— by Kindra Gordon, field editor, Angus Productions Inc.
© Copyright 2005 Angus Productions Inc.
Editor’s Note: This article was written under contract or by staff of Angus Productions Inc. (API), which claims copyright to this article. It may not be published or distributed without the express permission of Angus Productions Inc. To request reprint permission and guidelines, contact Shauna Rose Hermel, editor, at (816) 383-5270 or shermel@angusjournal.com.
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