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Move Over, Dad

So your son wants to return to the farming operation after graduation from college next year. He hadn't expressed much interest in the farm until the last two years. Now what?

The first step is to evaluate the potential cash flow of your operation. Are there enough plates at the table? Your operation will need to generate enough income to be able to support an additional family member.

Data from a number of sources indicates that it takes over $50,000 to support a family of four. Not all this income needs to come from the farm. A lot of family living in today's world is provided by off-farm income. If there isn't enough income in the operation, your son may need to take a job off the farm until there is enough income to support him.

Second, establish a probation period, a time for both you and your son to carefully evaluate each of your goals. Consider a pre-agreement that details the responsibilities of both generations and a timeline for assuming management and ownership. This agreement also can provide for an exit strategy in the event that either party comes to the conclusion that they do not want to become a part of the operation.

In my experience, over 20% of returning family members decide they would rather seek employment off-farm after getting a chance to "test-drive" their home farming operation.

This is a good time to do some long range strategic planning for your operation and discuss your observations with other family members. Is it possible other family members will want to join the operation in the future? The farm may not be large enough to accommodate all those who express an interest in coming back to the operation. Just because you were able to accommodate one family member does not obligate you to accept all members who want to return.

Dunteman is Management Coach for Farm Futures.