Cash flow crunches on farms are getting tougher this season as interest rates rise, land is expensive, and expectations for growth need sound management. Consider these actions as you make your approach to the transition conversation this year.

Communication during peak times, like harvest, can have many volcanic events. As I write this, I reflect on Allan Vyhnalek's list of emotions that block negotiation and therefore plug up communication. 

Time is going by. As one generation ages on the farm, and the next generation seeks certainty in planning for their future and understanding the needs of the parents for their well-being. Emotions affect planning.

According to the brochure “What every older Canadian should know about: Powers of attorney and joint bank accounts,” power of attorney is a written, legal document authorizing one or more persons to manage your money and property on your behalf when you are unable to do so. 

Young farm families have many expectations to manage as they work on farms as employees, raise small children and juggle time for off-farm revenue. One of the best ways to have less stress about compensation from the farm is to figure out what you need for personal family living expenses.

Your personal wealth bubble is having some flexibility in your wealth creation beyond the wealth you are creating in farm assets.