When it comes to farm versus household accounts, separate checking, savings and other accounts can safeguard business funds from personal ones, allow farms to monitor farm spending more easily and assist with recordkeeping of the farm’s finances.

Family business succession that builds family relationships and continues to perpetuate a successful business requires attention, time investment, deliberate planning and communication.

Over time, the strength and size of unified family assets create a competitive advantage over the farms that fragment their assets with each generation. I don’t believe many people set out to erode family assets, but it often happens by falling into some of these transition planning traps.

Hard work, determination and perseverance aid four generations of dairy producers on Boertje Farms in Visalia, California.

Some of the concerns heirs have in taking over the family farm include the financial viability of farming, the challenges of modern agriculture and lifestyle implications.

Twenty-five years ago, I would have told you that topics like self confidence and insecurities were a bunch of fluff. However, I’ve been through a lot and can tell you that it is the soft issues that become hard problems in farming.

Transition talks can be dreadful and pit parties against each other in an effort to find a long-term plan for the farm, but with the right approach, these talks can have an entirely different successful outcome.