BUSINESS Effective succession planning Developing a successful plan is more than who gets what and when BY JEFF DEWALD AND MIKE COHEN N Jeff DeWald o one really plans to fail; however, many farm families fail to plan. Farm succession planning is a process that takes time and focus. An effective plan can enhance family harmony and financial security. But done poorly - or left to chance - the end result could be a financial disaster and create broken family relationships that may never recover. Succession planning is not just a matter of who gets what and when. While that is important, the real planning starts with understanding the financial needs of the senior generation, while preparing the next generation to lead An effective farm succession plan includes four components: Financial independence For the senior generation, this is critical for a successful plan, and answers the question, " Are we okay? " Where will mom and dad find the income coming in (for life) that exceeds Mike Cohen 16 | OCTOBER 2023 their everyday living expenses? What if inflation remains high? How can they hedge foreseeable risks, like longevity (outliving their savings) or the odds they will require long-term care?