FARMFINANCE
By Jim Snyder
Transferring soft assets
Putting the cart before the horse when planning for succession can do more harm than good
This article is the third in a series about farm business management. The material is based on seminars developed by BDO. Each seminar focuses on a different aspect of preparing your farm for a transition.
B
alancing family and business needs can be challenging when managing a family farm business. Responding to these needs becomes even more complex as you try to balance ownership and management obligations. Managing soft assets, such as people, skills and knowledge, often requires a separate approach than if you were just dealing with the physical aspect of transferring your farm or hard assets. When all three functions—family, ownership and management—are balanced, your farm business will have a strong competitive advantage. Separating ownership from management and maintaining balance between them is fundamental to a sustainable family enterprise. Understanding the relationship between ownership and management is key to developing a balanced, wellthought out succession plan. Recognizing these concepts and openly
When all three functions—family, ownership and management—are balanced, your farm business will have a strong competitive advantage.
18 | July 2012 | MilkPRODUCER
Table of Contents for the Digital Edition of The Milk Producer - July 2012