Working together, the family was able to have discussions about how the farm could utilize its cash flow to find a combination of saving, borrowing, insuring and gifting assets to nonfarming children at the optimal times to have maximum impact on their lives while also having a minimal impact on farm operations.

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.

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. 

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

Find a lawyer you like. Ask other farmers which professionals have served them well. You can also go to the Canadian Association of Farm Advisors directory to find great advisers who care about agricultural families.

“Help, my siblings want farmland!” is one of my most viewed blogs. Our current reality of higher interest rates and rising land values needs to be addressed early on in your transition conversations.