Originally published in Missouri Soybean Farmer Magazine
By Robert Guinn, Chief Executive Officer
Guinn joined FCS Financial in 1993 as a loan officer in Southwest Missouri and now serves as the Chief Executive Officer for the cooperative. He was raised on a dairy and cow-calf operation in Southwest Missouri and graduated from University of Missouri with a degree in Ag Econ.
The end of the year is a time of reflection and planning. As you sit down to work on your balance sheet and map out your business plan for the upcoming season, you're likely thinking about everything from crop rotations to equipment upgrades. But there's another critical investment that's just as important as any new tractor or land purchase: your farm's future. I’m talking about succession planning.
For over 30 years, I’ve had the honor of working with Missouri farm families in a variety of roles with FCS Financial. I’ve seen firsthand how a well-thought-out plan can secure a family’s legacy for generations. I’ve also seen the devastating fallout when a plan doesn’t exist or isn’t executed.
Every farmer knows succession planning is important. But if you’re like most, it’s one of those things that’s easy to put off until another day. We’re all busy, and it's much easier to focus on the immediate tasks in front of us. But a successful transition isn’t something that happens on its own—it requires intention and effort. Based on my experience, there are three critical steps I’ve seen families take that make all the difference.
1. Communicate, and Communicate Often
When most people think about a succession plan, they think about a will or a trust. But a legal document is just one piece of the puzzle. The most successful farm families I’ve seen are committed to ongoing communication. This means regularly discussing the plan—and the reasoning behind it—with everyone who will be impacted, including your children, their spouses, and any other family members.
Leaving your family to guess your intentions after you're gone is a recipe for conflict. I’ve seen families torn apart by assumptions and unspoken expectations. It’s far better to be clear and honest. Have open conversations about your decisions while you’re still in control. While it might feel difficult or uncomfortable at first, having these discussions now prevents surprises and hurt feelings down the road. It ensures everyone is on the same page and helps preserve family relationships.
2. Take Action on Your Decisions
Conversations are a vital first step, but they’re only effective if you follow through. After these family meetings—which should be scheduled and happen regularly—you’ll almost always have a list of “to-do” items. Maybe someone brought up a detail that needs to be revisited, or a tax implication that needs to be addressed. The critical part is actually doing the follow-up work.
Don’t let your plan gather dust in a drawer. You should revisit it any time there are major life events, like births, deaths, marriages, or divorces. These changes can significantly impact your plan, and it's essential to adjust it accordingly. A great plan is a living document, and it requires consistent action to keep it up to date and relevant.
I also encourage you to bring your key advisors into these conversations. Your accountant, attorney, and lender are vital partners in this process. Not only can they provide expert guidance but involving them ensures they are familiar with the next generation and their roles in the business. A strong working relationship with these professionals is a crucial component of any successful transition.
3. Transition Management Long Before You Transition Assets
Some of the biggest wrecks I’ve seen are when a farm transitions assets without first transitioning management. When a father or mother makes every business decision up until their death, they leave the next generation unprepared to take the reins.
A successful succession plan includes more than just the transfer of assets. It also requires a clear, intentional timeline for growing the next generation into capable managers. This means giving them opportunities to make decisions, lead projects, and gain the skills they’ll need to run the operation. They need to understand the business from top to bottom, from balance sheets and cash flow to production and marketing.
Building this transition period into your plan gives the next generation the confidence and experience they need to succeed. It also allows you to mentor them and guide them through challenges, ensuring the farm continues to thrive for years to come.
Succession planning isn't just about preserving your farm; it's about preserving your family and your legacy. It’s an investment that pays dividends for generations. I encourage you to take the time this winter to start the conversation, take action on your plan, and intentionally prepare the next generation. Your family, and your farm, will be better for it.
