Important Succession Plan Considerations

Succession planning is a long-term job. In order to avoid struggles in this area, Sara Schafer offers five steps for successful succession planning:

1. Cultivate a strong and focused management team.
2. Maintain an accurate assessment of the business value of your farm.
3. Conduct an audit of the power structure of your business.
4. Regularly assess and update your compensation strategy.
5. Be prepared for disruption in a variety of forms.

Long-term planning and consistent maintenance of your succession strategy are key. Don’t just make a plan then forget about it. Return to your plan regularly, reevaluating and updating it so that when the transition time comes, your business is prepared to make the change smoothly. Be sure to contact your De Boer, Baumann & Company ag advisor for guidance.

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