Farm Transition Program
Strathclair, Manitoba
Boulder Bluff Clydesdales
Charity Martin Thevenot grew up near Strathclair, Manitoba, helping her parents, Blaine and Trinda Martin, on their third-generation farm, Boulder Bluff Clydesdales.
Cypress River, Manitoba
Lakeshore Holsteins Ltd
Farming is in Ryan De Ruyck’s blood. At a young age, he remembers helping his father, Benny, along with his three sisters on their family’s dairy farm near Bruxelles, Manitoba.
Deloraine, Manitoba
Laval Family Farm
Dean Laval and his wife, Barb, have three children, one boy and two girls. Their son Taylor is now set to be the fourth generation to run the family farm, following in his fathers, grandfathers, and great grandfathers’ footsteps.
Sunrise Farm Legacy Loan
A retiring owner can create a solid plan for transferring farm ownership to the next generation while ensuring its continued success by systematically addressing these questions and involving relevant experts and family members. Healthy conversations about ownership, management, finance, roles, plans, goals, values, and vision must be discussed with your family, including the interested and uninterested children and seeking ways that they can determine their interest in helping the business.
In most cases, many farm businesses avoid farm transitioning because there are no clear goals or communication for the young farmers to carry on the daunting task. Others do not even know how to start and who to consult for guidance.
Some farmers trying to set up or have set up a farm transition plan need to recognize their in-laws in the process, remembering that they have a role to play in the farming business. Everyone in the family has a role to play, either working on the farm or not. The most important is for the person to show interest in the business and its success.
In summary, farm transitioning is a complex transaction that involves tax planning, estate planning, and relationship management. When it comes to planning, everyone involved in the transactions looks at different options and makes informed decisions. The process requires careful consideration and discussion. Without thoughtful planning, your farm, land, and family’s future may be at risk.
At Sunrise, we can work with you, your family, stakeholders, and/or successor to ensure a smooth transition.
The Sunrise Farm Legacy Loan assists farmers that are looking to start, grow, or pass along their farm business. The Legacy Loan allows them to make payments that aid cash flow while building equity in the farm asset, and potential tax advantages for the seller.
CLICK HERE to connect with a Sunrise Credit Union lender.
More than half of Manitoba Farm
Operators are over the age of 55.
Three out of four of Canada's farms will change hands over the next 10 years.
According to Statistics Canada’s Census of Agriculture, farm transitioning is essential to Canada’s agricultural industry’s long-term viability and health. The comprehensive survey provides valuable data on various aspects of farming nationwide, including farm operators’ demographics, farming operations types, farming income, and trends in the agricultural sector. A closer look at the census, carried out every five years, reveals a decrease in farm transitioning in Canada, which could arise due to several mitigating factors, such as the aging farmer population. This is the rationale behind the interest in farm transitioning in Canada among individual farmers, associations, organizations and government advocating its importance and showing interest in it.
Agriculture is one of the cornerstones of the Canadian economy, contributing billions of dollars annually, providing food security, and employing a significant portion of the workforce. Therefore, it must be sustained through farm transitioning.
What is Farm Transitioning?
Farm transitioning is a methodical and planned process through which agricultural operations or farm businesses are bequeathed to another generation by the retiring owner. It is a deliberate and systematic process where another person handles the company on your behalf in a way or manner you had wanted it to be or perhaps better than you.
It involves identifying a successor who have an interest in taking the business or farm to a greater height, modernizing farming techniques, managing resources, possess good market strategies and being compliant with regulatory and standard practices, performing continuous research and innovation concerning sustainable agriculture.
Farm transitioning can take multiple years, and it encompasses a holistic approach to farming that considers environmental impact, economic sustainability, community involvement, and adaptation to changing agricultural landscapes.
Frequently Asked Questions
As an individual who wants to transfer the farm to children, some essential questions and careful thoughts need to be addressed and decided upon before other actions follow. They include but are not limited to the following:
Are your children interested in taking over the farm?
It is advisable to have a candid discussion with your children about their interest in taking over the farm and to understand their goals, concerns, and aspirations regarding it.
Do your children have the skills, knowledge, and experience to manage the farm?
This is an important part that requires careful deliberation. You can assess your children’s skills, knowledge, and experience related to farm management. If there is a gap, you can offer mentorship and training or even send them for further studies to gain more knowledge. This ensures the development of talent for critical leadership roles to ensure continuity.
What roles and responsibilities will each child have in managing the farm?
Identify each child’s capabilities, strengths, and interests to determine the roles and responsibilities for managing the farm. This should be done with consistent monitoring and guidance until the child can handle it professionally.
Are there any potential conflicts or challenges that must be addressed before transferring the farm to your child(ren)?
It is important to address any potential family conflicts or challenges promptly, encourage open dialogue, and seek ways to resolve related issues immediately.
How will you support your children in their new roles as farm owners?
The retired owner should be willing to provide ongoing support and guidance to help the young farm owners in their new roles. This would help them settle in quickly, learn quickly, and boost their confidence.
Have you considered creating a will or trust to formalize the transfer and ensure a smooth transition?
It is important to work with a lawyer, an accountant and a financial advisor to ensure you have set out your wishes. This is best to consider tax implications and legal consequences that may arise.
Have you consulted with legal and financial advisors to understand the implications of transferring the farm?
It is best to consult with legal and financial advisors specializing in estate planning and farm transfers. Working with them helps to create a plan that addresses wills, trusts, legal requirements, tax implications and necessary documentation for the transfer of ownership.
How will you document a detailed succession plan guiding the new farm owners?
Working with experts will help the retired owner to develop a detailed succession plan that outlines the steps involved in transferring ownership to the children. The document is a guide that should include timelines, roles and responsibilities, and contingency measures.
What are your expectations for the farm’s future after you transfer ownership?
Give a clear and futuristic picture of how you envisioned your farm to your children. Discuss the long-term vision for the farm by setting clear goals and strategies, including plans for sustainability and growth.
What are the options if one or more family members are not interested in the family farm?
To ensure non-interested family members are compensated fairly, options include bequeathing them a parcel of land that is rented back to the farm through a long-term rental agreement, beneficiaries of parents’ life insurance, or other non-farm property assets that do not pose a threat to the farm operations
Less than 10% of Manitoba Farmers have a written transition plan.
Our Sunrise Credit Union advisors are ready to help
you plan your farms transiton.
you plan your farms transiton.
Insurance policies are a part of farm transition planning when you have one or more children
who will not be taking over the farm. Sunrise Wealth Management is here
to assist you in ensuring fairness when passing on the family farm.
