April 2024 - 22

BUSINESS
Why every operation needs
two succession plans
BY JEFFREY S. DEWALD CLU, CHFC, CBEC
I
t was a gorgeous spring morning
in Maine, and our client Jim was
moving his water tanker from
one parcel of his sprawling farm
to another, over a winding and
hilly country road. It was Jim's
last chore of the morning. After
lunch, Jim had a meeting at his
attorney's office with his cousin and
business partner. They were to put
the finishing touches on the farm
succession plan we'd been working
on for the past year.
As Jim rounded a bend and
crested a hill, his heart stopped.
There in front of him was the son
from the farm next door, driving a
box truck full of eggs, straddling the
double yellow line, and coming at
Jim head-on. As Jim's life flashed
before his eyes, he wrenched the
wheel to the right, sending his
tanker careening into the ditch as
the box truck hit him ...
By its very nature, farm succession
planning is a challenge. We ask our
clients to prepare for the day they
can no longer be at the controls of
an operation they have grown and
nurtured for 20, 30, 40 years or longer.
None of us wants to contemplate that.
Adding to the challenge: In our
combined 80 years experience in
succession planning, we've come to
realize that every operation needs
not one, but two succession plans.
Everything goes perfect
We call the first plan the
" Everything Goes Perfect Plan. " It's
the roadmap for when life works out
exactly as planned. You never have
a bad crop, you and your spouse
are never sick, the children grow
naturally into their management
roles, and all the children and
their spouses (even the ones who
22 | APRIL 2024
The Egg Truck Plan is the second plan created in honor of Jim, for the
times when the unthinkable happens. Photo courtesy of Jim.
didn't grow up on a farm) get along
and accept the sacrifices and time
commitment. Mom and dad get to
retire at the time of their choosing,
remain financially independent
of the operation and live out their
retirement dreams.
The Everything Goes Perfect Plan
is important. It gives a goal and a
direction for long-term planning.
How do we prepare the next
generation to take over? Which of
the children should manage which
part of the operation? Where will
mom and dad's income come from,
once they stop farming, and how can
we minimize the taxes? How do we
hedge against foreseeable risks, like
inflation, outliving their assets, or the
financially devastating probability of
needing long-term care?
Every operation
needs a second plan
But every operation needs a
second plan, which we call The Egg
Truck Plan in honor of Jim. What if

April 2024

Table of Contents for the Digital Edition of April 2024

Editor's Letter
The Pest Whisperer?
Managing wildlife on the farm
Weed battle
Pennsylvania Vegetable Growers Association
Southeast honors
Why every operation needs two succession plans
Biopesticides and beneficial insects
Ag Labor Review
Farm Market & Agriculture
Classifieds
Advertiser Index
April 2024 - 1
April 2024 - 2
April 2024 - 3
April 2024 - Editor's Letter
April 2024 - 5
April 2024 - The Pest Whisperer?
April 2024 - 7
April 2024 - 8
April 2024 - 9
April 2024 - Managing wildlife on the farm
April 2024 - 11
April 2024 - 12
April 2024 - 13
April 2024 - Weed battle
April 2024 - 15
April 2024 - 16
April 2024 - 17
April 2024 - Pennsylvania Vegetable Growers Association
April 2024 - 19
April 2024 - Southeast honors
April 2024 - 21
April 2024 - Why every operation needs two succession plans
April 2024 - 23
April 2024 - Biopesticides and beneficial insects
April 2024 - 25
April 2024 - 26
April 2024 - 27
April 2024 - 28
April 2024 - 29
April 2024 - Ag Labor Review
April 2024 - 31
April 2024 - Farm Market & Agriculture
April 2024 - 33
April 2024 - Classifieds
April 2024 - Advertiser Index
April 2024 - 36
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