Farm Succession and Estate Planning with Personal Coaching for Participating Families

 

Roberts, D., Area Extension Agronomist, WSU Spokane/Lincoln County Extension, 222 N. Havana St., Spokane, WA 99202-4799Tuck*, B.V., Dryland and Irrigated Field Crops Faculty, Wasco County OSU Extension, 400 East Scenic Drive, The Dalles, OR 97058Kerr*, S.R., WSU-Klickitat County Extension Director, 228 W. Main Street, MS-CH-12 Goldendale, WA 98620

ABSTRACTCounty faculty from Oregon and Washington Extension

initiated a farm succession planning project based on needs assessment of farm families in eastern Washington and Oregon. The project is funded by the Western Center for Risk Manage-ment Education and USDA-CSREES. From 2006 to 2008 we held three farm succession planning workshops at each of six locations across the region. Participation in these workshops greatly exceeded expectations with 40-60 attending at each site. Workshop topics included; reasons for developing a farm succession plan; communicating successfully with all family members involved; identifying appropriate professional input; an overview of relevant state laws; discussion on estate laws and writing wills; conducting successful family meetings; overcoming difficulties encountered in the process; making good use of attorney time; specifying inheritance of treasured personal items; protecting the business in the event of a sudden death; and getting motivated. We recognize that farm succession and estate planning is a challenging process for most families. A unique feature of this project is that the 86 farm families who committed to developing a succession/estate plan received free coaching throughout the project. The coaches were hired initially and trained by WSU to advise farm families who were experi-encing financial difficulty. The coaches all had experience in business and/or the banking industry. They contacted the client families on a regular basis by phone or e-mail to encourage them through the steps of the process. If requested, they met in person with the client families to assist with goal-setting or to facilitate family meetings.

SITUATION“What will become of the family farm?” is often a

difficult and heart-wrenching question that must be addressed to ensure a positive outcome for all. Without a farm succession plan (FSP), a farm enterprise may have to be dissolved to settle an estate and even more acreage may be lost from America’s agricultural portfolio.

ACTIONSWashington State University Extension and the

Oregon State University Extension Service were awarded a $32,488 Western Center for Risk Management Education grant to create the WSU/ OSU Farm Succession Program.

A series of regional FSP workshops was held throughout Eastern WA and OR from Nov. 2006 to Jan. 2008. A Web site was created at www.spokane -county.wsu.edu to house workshop materials.

Program participants who committed to creating an FSP received free coaching from WSU Farm Family Support Network consultants.

“The workshops helped us...[set] goals for ‘turning over’ the ranch and we completed some of those goals. Thank you.”

Table 1. Participant data

Projected Number of Participating

Families

Actual Number of Participating

FamiliesAttendance 90 321

Signed Commitment Forms

45 86

Completed FSP

30 10to date

COACHES…• “Kept me focused and encouraged; very support-

ive.”• “Urged us to get things done—outside prodding is

what we need.”• “Encouraged us to keep going.”

IMPLICATIONS AND RECOMMENDATIONSFarm succession planning is and will continue to be a vital issue to

address throughout the country. Producers both want and need FSP education.

Although fewer than the projected number of families completed an FSP by the conclusion of the grant, many made important steps towards that goal and continue to work on their plans and other essential docu-ments. Coaching was effective and well received and was a crucial factor in the program’s success. Recommendations for those who decide to try a similar mentoring approach for farm succession planning education include:• Use coaches who live near program participants• Conduct face-to-face coaching sessions• Provide structure and defined goals for coaching• Provide a means of coach-to-coach support• Charge a participation fee refundable upon completion of an FSP• Provide frequent feedback to coaches about their effectiveness• Use coaches and resource people knowledgeable about state-specific FSP issues

OUTCOMES AND IMPACTSNinety-three program evaluations were returned, a 29% response rate by participating families. Program-wide evaluation results from these respondents included:• 52% signed an FSP Coaching Commitment form• 83% of others planned to complete a FSP without a coach• 85% read the workbook; 93% found it very or somewhat useful• 47% set goals and priorities for farm succession• 74% discussed the workshops with family members who didn’t attend• 60% held a family meeting• 54% consulted an attorney, CPA and/or financial planner• 43% updated their wills• 14% completed an FSP• 88% said coaching was very or somewhat useful

“[The program] really motivated me to start this topic. I really didn’t know where to start, it was very helpful and informative.”

“Excellent program, the best! It was especially helpful in getting the children interested in the estate planning process.”

“This brought up issues we had not considered and so was informative as well as being a catalyst for starting the process.”

Without a succession plan, a farm’s future is as precarious as this combine!

Photo by John Aeschliman (UBP).

FEEDBACK FROM PARTICIPANTS