FarmLink News

First Impressions are Lasting Impressions–Preparing for the first contact with a FarmLink Participant

Aspiring Farmers Benefit From Land Programs–By Patricia Callahan, The Wall Street Journal

First Impressions are Lasting Impressions—Preparing for the first contact with a FarmLink participant

It seems obvious that a program with farm owners and farm seekers will have success in bringing these parties together to transfer farms. However, it is not that easy. Differences in goals, values, personality types, and financial issues may end your discussion about a farm transfer, before you can even get to the kitchen table.

As a participant in the NY FarmLink program there are many things that you need to consider before making contact with another program participant. Whether it is a farm transfer between family members or between unrelated individuals, your readiness, personal goals, finances, values and knowledge will need to be decided and evaluated. You should be prepared to discuss these, before you make the first contact. Being prepared could be the difference between a successful and an unsuccessful first contact.

The following questions are not intended to be an exhaustive list, but can serve to get you started in thinking about the serious issues that must be addressed during a farm transfer. Many other concerns may come to mind as you think about your answers to these questions. Be sure to write down your additional thoughts and questions as you go through the list.

As a Farm Seeker:

• Are you ready to take on the responsibility of owning your own farm? Why do you want to be a farmer? Have you researched the physical, emotional and financial requirements of operating a farm business? Have you contacted others in the same type of enterprise for their input and to discuss their experiences? Do you have the support of your immediate family?
• Do you have the necessary experience, knowledge, skills and track record for the type of farm enterprise you want to enter? If you don’t, what is your plan to obtain the knowledge that you will need? You may need to look for a farm owner who is in a position to share his or her knowledge with you. You may need to negotiate a trial period or work for someone for a period of time.
• Do you have a business plan prepared?
• Do you have financing to purchase some assets? Are you aware of loan and grant programs that could be available to you? Have you contacted creditors, such as the Farm Service Agency, Farm Credit, or your local bank?
• Is owner financing required or available? Can you afford to partially buy the farm assets, such as the milking herd, and gradually purchase the land over time?
• Have you thought about sources of supplemental income such as an off-farm job during the start up phase (especially if the farm cannot support two families and you wish to remain small)? Does your spouse have off-farm income and a willingness to contribute during this time?
• Are you familiar with the different types of partnering and business arrangements that can be made?

As a farm owner:

• Have you planned for your exit? Are you ready to transfer control of the management and assets of your farm? Are you and your family emotionally ready? Can you afford to retire, or do you have plans for another career?
• If you are considering a partnership, rather than a transfer, are you prepared to share control of the management and assets?
• Have you taken a look at your current financial situation? Do you have a viable business that will be able to prosper in the future? Can the farm support two parties during a transition phase or do you require options for supplemental income during this phase?
• Are you willing to take the time to mentor and share your knowledge with an entering farmer? Do you have certain expectations of the younger generation? Are these expectations realistic? Do you have the management skills required to mentor and direct someone?
• Are you prepared to talk about what you can contribute to the farm business financially? You may own some machinery or livestock that can be part of the package. Are you able to provide financing to a new farmer?
• Do you have farm records to show the history and success of the business? Are you willing to share them?
• Have you researched different types of partnering and leasing arrangements and agreements that can be made?

Owners and Seekers:

• What is your vision for the farm’s future?
  • What are your specific ideas or goals for the operation? What is your timeline for the farm transfer? Are these flexible? Think about how these ideas might impact the other party. For example:
    • As a Seeker: Do you see yourself expanding the business or do you want the business to stay small? Are you willing to have the farm owner influence your decisions?
    • As an Owner: Are you open to allowing the younger generation to make changes in the farm operation
• How well do you listen and communicate?
  • Think about how you will explain your goals for the farm business. How will you react to his or her answers and questions? Do you have the listening skills necessary for creating a strong relationship in order to facilitate the farm transfer?
• Have you thought about the impact that the transfer will have on your family?
  • Talk to your spouse and children and find out what they are expecting from the transfer. Give each person involved an opportunity to speak. Are all parties aware of the requirements on them for work, hours, vacations, finances and their futures? Does your business plan meet the needs of all family members? Not all family members, such as in-laws and off-farm siblings, will be involved in the transfer but need to be involved in these communications.
• Are you willing to start with a trial period before starting a formal arrangement? This can be a good way to test your relationship with a potential partner and also their commitment to the farm’s success and transition.
• Are you flexible? Are you able to compromise and give and take in order to make the transfer successful? As a farm owner are you able to let go and share control of the business? As a farm seeker are you patient and willing to work towards your goals over time? Remember that a successful farm transfer is not a single event, but is a process that takes place over time.
• Are you aware of and open to differences in personalities, goals, values, beliefs or lifestyles? Do you have the skills and patience for dealing with these differences, or are you willing to learn how to work with these differences?

When you are ready to contact the Farm Owner or Seeker, on the phone or in person, remember to treat it as you would an interview. The purpose of an interview is to get to know each other. Know your strengths, and your weaknesses, and be honest in communicating them. Be alert and think before you answer questions. Concentrate on what the other party is saying and repeat what you have heard back to make sure you understand what was said. Allow each person time to speak without interruption. For face-to-face meetings, be on time and dress neatly. Be respectful of each other’s time and the amount of effort that each of you has made to come to the meeting.

This first interview may be the beginning of a long-term working relationship – a relationship that will be key to the success of your farm transition plan. Take this opportunity of the first meeting to set the foundation for a strong working relationship.

You can start by talking about your expectations and goals. Discuss the differences and resolve any discrepancies at the start. Being open and honest will save you time and heartache later. It may take several discussions. If the farm situation is not right for either of you, take what you have learned from the meetings and move on. If you decide that you might have a workable situation - together you will continue to discuss the details and you will need to develop a transition plan. As you draw up this plan, continue to get to know each other and evaluate your relationship and each party’s readiness to transfer.

As you develop your transition plan and before you put it into action you will need to consult your own lawyer, accountant and other advisors as necessary. NY FarmNet can help by providing information, referrals and consulting during this planning phase.

For more information relating to Farm Transfer, Business Planning, Communication Skills and Farming Relationships, call NY FarmNet at 1-800-547-3276.