MSU Extension Managing Farm Stress

Succession planning may feel intimidating. Many farmers wait as long as they can before starting planning because they are unsure of how to initiate the process. There are many things to consider when succession planning for a farm. Many families consider the business side of the plan first and are then blindsided by stress and conflict as they attempt to transition the farm to another generation. It can be difficult for everyone to agree on what will come next or how the farm will continue, but early planning can make the process easier and more productive.

Identifying Potential Stressors

Anticipating what may make the process more stressful, and taking steps to alleviate that stress can also make this process smoother. When succession planning, there may be several sources of potential stress and conflict such as:

Financial stress 

Having conversations around current values and depreciation can make anyone feel defensive. It may feel like all decisions are under a microscope and every choice is being questioned. It can add to stress when things aren’t going as well as planned and others dissect purchases and sales.

Fear

Fear is a common feeling for the current generation of owners during the process of succession. They may be afraid of losing control over something that has been a major part of their life and identity for many years. There may be some anxiety related to financial support after retirement, and also how they will fill their days when there isn’t a long list of chores waiting. Many farmers report they are apprehensive about their successors’ readiness to take over operations, and are concerned that decisions made outside of their control may lead to significant loss.

Feeling underappreciated

Both the current generation and potential successors may feel that their contributions are undervalued or not appreciated. Potential successors may feel that all suggestions for innovation or change are dismissed, and that the current generation of owners does not recognize their abilities and skills. It can be very frustrating to want to introduce new ideas and concepts to improve the farm, and to feel like they aren’t welcomed. Current owners may feel that suggestions of change are made because the prospective successors don’t understand what they have been doing and don’t appreciate how much they have done for the farm up to this date. They may see suggestions for changes as criticism of their own work or abilities.

Feelings of guilt

Farmers often report feeling guilt when they are no longer able to perform the work. Farmers may also feel ashamed for wanting to retire when the farm has rested on their shoulders for so long. Others report an emotional connection to the land or farm, and a fierce commitment to the work. Younger family members may also feel a sense of guilt if they do not want to take over the family farm, and there may be a struggle as they try to communicate that to family. For many farm families, it can be an  expectation that children will grow up and continue the family farm work legacy, and it can be difficult for those who do not desire to continue on that path.

Health

While aging is often the main impetus for succession planning, health concerns can add an additional urgency to the process. When the planning and transition timeline is forced to speed up because of complications related to health, this can create additional stress. Mental health can contribute to stress as well. Depression and anxiety may make it difficult to make decisions, which slows down the planning process.

All of these issues can make succession planning more complicated and stressful and may create opportunities for conflict between family members. To add to the stress, while the family is facing the above issues, the work of the farm continues. Decisions still need to be made, and purchases and sales continue. The stress may lead to breaks or even halt the process of planning.

Tips for Planning Sessions

To facilitate a more productive, and perhaps less stressful, succession planning process, families should consider the following action steps:

Set goals early

Discuss everyone’s vision for the farm. Take note of any shared goals and be intentional to focus on how the family can work toward those goals together. It can be helpful to set goals in broad terms. Looking into the future might look more like defining how the farm will continue to be a farm or how the land will remain in the family’s ownership, rather than a specific plan for day-to-day operations.

Ask questions

It is better not to assume you understand the intent behind someone else’s statement. Coming to the table believing everyone else is there with good intentions can help to facilitate the conversation. If someone says something you don’t agree with, ask them about it. Try to determine the motivation behind their thought and the tie to the established goals for the farm. Asking questions can often circumvent misunderstandings and conflict.

Listen

When you ask a question, listen to the answer. Using active listening skills reduces defensiveness and facilitates safe communication, even when there is disagreement. Effective listening starts with reducing distractions, so it is important to set aside the time for these conversations without answering phone calls, texts or emails. Practicing non-verbal listening cues like making eye contact and open body language indicate engagement. Summarizing and asking questions can communicate understanding and help to catch any misinterpretations.

Build a meeting habit

Make a point of planning ahead and meeting consistently at the same time which can help to keep everyone organized and engaged in the process. Knowing how often you plan to meet and when (for example, one time per month, on the first Tuesday at 3pm) also takes the pressure off of coordinating schedules for each meeting. Succession planning is rarely completed in one meeting, and planning ahead to meet regularly will be more productive. It is more difficult to forget a standing meeting, and you are also more likely to make steady progress as each person has the time to accomplish tasks between meetings.

Consider finances

Conduct transparent conversations about farm financials. It is important to come to meetings with current, accurate information, and it is often useful to incorporate professional help to analyze numbers and determine long term viability. The current farm owners should be prepared to be open about the current financial condition, and potential successors and family members will find that the conversation is more forthcoming when it is not met with criticism. Honest conversations are more likely to happen in non-judgmental spaces.

Succession planning can either bring a family together to create a clear vision for the future, or drive wedges into these relationships. Farming is a unique profession, in that family members often work closely together, and when a farmer retires, it is not unusual for them to continue living on the farm. This means that even after retirement, the previous generation of owners may continue to be involved in some way in operations. Building and maintaining a positive relationship throughout succession planning and beyond benefits the family and the farm.

Opportunities to connect

Michigan State University Extension also offers a variety of programming and resources to support yourself or loved ones undergoing mental health distress. MSU Extension offers programs such as Mental Health First Aid, which can teach you how to support someone who is experiencing a mental health challenge or crisis.

For those in the agriculture industry and their families, resources and information can be found at the Managing Farm Stress website. These resources include teletherapy services, the free virtual training Rural Resilience, the AgrAbility project, which supports people with disabilities working in agriculture and more.