April 2024 - 23

BUSINESS
the unthinkable happens, and you
don't get the chance to live out your
dreams? What is your contingency
plan to keep the wheels from falling
off the operation, and your family
from spiraling into arguments and
acrimony if you die, get sick or
get dementia? Is your family and
operation prepared?
HAVING
GOOD INTENTIONS
DOESN'T GUARANTEE
SUCCESS.
Having good intentions doesn't
guarantee success. Both plans
must address a range of issues:
Who will own the operation? Who
will manage it? How do we keep
key non-family managers on board?
How have you communicated your
intentions to your family? How do
we prevent a breakdown of trust
and communication among the
children who are in the operation
and the ones who have chosen a
different path?
Are your legal documents (wills,
trusts, powers of attorney, etc.) upto-date?
Or are they the same ones
you executed 30 years ago when
your oldest child was born? Do
they transfer the farm to the right
parties, with appropriate protections
against divorce and poor choices?
How do they treat the children who
are not in the operation? Will your
surviving spouse be financially
independent of the operation?
If there is a buy-sell agreement,
is it tax-efficient? Is it affordable,
or will it bankrupt the buyers? With
land values skyrocketing in many
parts of the country, is the value in
the agreement " fair " to both buyer
and seller? If there is insurance
associated with the agreement, are
the policies healthy? Or have they
been adversely impacted by the
stock market or interest rates?
We've had lots of farmers,
growers and ranchers tell us " We
have a plan. " But our experience is
VEGETABLEGROWERSNEWS.COM | 23
most operations have one plan or the
other, but not both, and many have no
plan at all. If your operation doesn't
have both an Everything Goes Perfect
plan and an Egg Truck Plan, it may
be time to upgrade your planning to
protect your family and the farm.
Jim wasn't belted in, and he broke
several ribs as the tanker rolled into
the ditch. Luckily, he survived. But in
a cruel twist of fate, 2 ½ years later,
his brother was hit head on and
killed by a pickup truck which hit
a patch of black ice. Jim's request
of us? " Keep telling that egg truck
story. None of us know how much
time the Good Lord will give us, and
we need to be prepared. "
Our next article will explore the
surprising reason why most family
business succession plans fail.
Disclaimer: Agribusiness Succession
Advisors' Jeffrey DeWald and Michael
Cohen are registered representatives
of and offer securities and advisory
services through Lincoln Financial
Advisors Corp., a broker-dealer
(member SIPC) and registered
investment advisor. This information
should not be construed as legal or
tax advice. You may want to consult
a legal or tax advisor regarding this
information as it relates to your
personal circumstances. Agribusiness
Succession Advisors is not an affiliate
of Lincoln Financial Advisors. CRN5934717-090723
Jeffrey
S. DeWald CLU, ChFC,
CBEC is a founder and managing
member of Agribusiness Succession
Advisors, LLC. Jeff has more than
40 years of experience providing
succession planning and estate
planning strategies for successful
farm families and other closely
held businesses. Jeffrey S. DeWald
is a registered representative of
Lincoln Financial Advisors Corp.
Jeffrey DeWald can be reached
by email at Jeff.DeWald@lfg.com.
For more information, visit www.
agsuccession.com.
http://www.agsuccession.com http://miedemaauctioneering.com http://www.VEGETABLEGROWERSNEWS.COM
April 2024

Table of Contents for the Digital Edition of April 2024
