New England Farm Transfer
Workshops
Michael Sciabarrasi
Extension Professor, Agricultural Business Management
University of New Hampshire
Robert Parsons
Extension Professor, Farm Management
University of Vermont
Farm Transfer Workshops
Review
Situation
Program Description
Evaluations
Time Frame
2002 through 2007
Prior efforts
Situation
•
Succession critical to future of farming
Aging farm population & retirement
High start-up costs & tight profit margins
Development pressures
•
Significant changes in estate tax law
•
Limited expertise across New England
Program Description
Goals
Sustain a viable farm business which can
support the incoming generation while
providing an adequate retirement for the
exiting generation
Leverage available resources across New
England and the Northeast
Program Description
Audiences
Older farmers interested in succession planning
Younger farmers contemplating farm ownership
Industry professionals looking for a better
understanding of succession issues
Program Description
•
Delivery
Introductory workshop on farm succession
A second workshop targeting specific issues
One-on-one visits
•
Support
Northeast Center for Risk Management Education
New England Extension, Land Link Organizations,
Others
Program Description
Transferring the Farm I Workshop
Agenda
Getting the Farm Transfer Process Started
Transferring the Farm - Tools and Techniques
Farm Transfers and Estate Planning
New Ideas and Creative Solutions
Firsthand Experience
New England Wide
5 sites ‘03, 4 sites annually ‘04 –’06, 2 sites ‘07
Program Description
Transferring the Farm II Workshop
Agenda
Retirement Income Needs
Medicare/Health Care Planning
Farm Transition Process and Business Entities
Ingredients of a Business Agreement
Case Study
New England Wide
(2 sites ’04) 3 sites ’05, 2 sites annually ’06 & ‘07
Evaluations
Workshops ‘03-07
Participant profile
Workshop satisfaction
Instructor effectiveness
Knowledge level
Steps taken
Open-ended questions
Need help
Likely future advisors
Follow-up ‘04
Participant profile
Participant satisfaction
Desired follow-up
Steps taken
Applied workshop
concepts to farm
Participation
TTF I
TTF II
798 participants
193 participants
458 evaluations
141 evaluations
57%
73%
Participation
TTF I
TTF II
250
200
150
100
100
50
50
0
'03 '04 '05 '06 '07
Participation
0 '05 '06 '07
Evaluations
TTF I Profile
(N=458)
Sex
Female
Male
Age
>65
Farm owners
72%
Own farmland
74%
Farm Ownership
< 35
Other
35-45
Partnership
56-65
46-55
Sole
Proprietor
TTF II Profile
(N=141)
Sex
Female
Male
Age
>65
Farm owners
80%
Own farmland
77%
Farm Ownership
< 35
Other
35-45
LLC
Partnership
46-55
56-65
Sole
Proprietor
Workshop Satisfaction
TTF II
TTF I
1 2 3 4
5
Percent
Mean
Score
0 1 5 31 63
4.6
0 0 2 29 69
4.7
1 2 3 4
Percent
Mean
Score
0 1 1 27 71
4.7
Organization 0 0 2 24 74
4.7
Overall
5
Scale of 1 (dissatisfied) to 5 (satisfied)
Instructor Effectiveness
TTF I
1 2 3
4
Percent
Getting started
5 Mean
Score
1 2 9 44 44
4.3
Tools & techniques 0 2 15 49 33
4.1
Farm transfer
1 2 12 41 44
4.3
New ideas
1 3 17 47 33
4.1
Farmer panel
1 3 10 34 52
4.3
Scale of 1 (not effective) to 5 (very effective)
Instructor Effectiveness
TTF II
1 2 3
4
Percent
5 Mean
Score
Retirement needs
1 0 9 40 50
4.4
Health care
1 1 9 38 51
4.4
Business structure
0 0 12 35 53
4.4
Business agreements 0 2 10 39 49
4.4
Farm case study
4.3
0 2 15 32 51
Scale of 1 (not effective) to 5 (very effective)
Knowledge Level
TTF I
Prior
Mean
SD
Post
Mean SD
Assessment of goals
2.96 0.99
4.12 0.67
Retirement planning
2.80 1.03
3.92 0.80
Business transition
2.58 1.01
3.95 0.77
Estate planning
2.68 1.04
4.05 0.79
Scale of 1 (low) to 5 (high)
Knowledge Level
TTF II
Prior
Post
Mean SD
Mean SD
Retirement income needs 3.03 0.97
4.15 0.78
Health care planning
2.78 1.05
4.07 0.72
Farm business structures
2.70 0.85
4.14 0.64
Business agreement
provisions
2.55 0.95
4.14 0.70
Scale of 1 (low) to 5 (high)
Steps Taken (Last 5 Years)
TTF I TTF II
Talked to family about transfer
57%
52%
Contacted/met ag. professional
32
40
Contacted/met service provider
37
40
Attended other transfer workshop
32
52
Wrote/updated a will
28
16
Changed business structure
13
14
Developed a business plan
15
19
Other
4
9
No steps taken
11
11
Need Help
TTF I*
Specific legal advice
50%
Finding needed advisors
43
Specific financial advice
41
Keeping on track to get it done
40
Putting it all together
39
Working through family dynamics
39
Affording expenses to complete transfer plan
35
* Collected in ’06 and ’07 only (N = 102)
Likely Future Advisors
TTF I*
Attorney
62%
Tax consultant
50
Estate planner
49
Transfer planning facilitator
36
Dev. rights/cons. easement specialist
32
Financial advisor
31
Farm business management specialist
29
Land use planner
24
Mediator or counselor
19
* Collected in ’06 and ’07 only (N = 102)
Open Ended Questions
TTF I
Please tell us the most valuable thing you learned…
How can we improve this workshop?
What are the major obstacles in transferring the farm
to the next generation?
What would be the most helpful assistance for you to
start or complete your farm transfer plan?
Suggestions for future topics related to farm
transfers…
Open Ended Questions
TTF II
How can we improve this workshop?
What do you plan to do as a result of attending?
Additional comments
Follow-up Evaluation
Satisfaction
(N =32)
Satisfaction with …
Workshop format
Mean Score
4.7
Presentations
4.5
Educational materials
4.6
Location
4.6
Scale of 1 (dissatisfied) to 5 (satisfied)
Follow-up Evaluation
Assistance for Fee
Type
Advanced workshop
Yes
No
N
46% 54% 26
Small group meeting with speaker
32
68
22
Farmer-to-farmer group discussions
37
63
19
One-on-one visit
50
50
24
Follow-up Evaluation
Steps Taken (since prior spring)
Talked to family about transfer
62%
Contacted/met ag. professional
17
Contacted/met service provider
21
Attended other transfer workshop
17
Wrote/updated a will
24
Changed business structure
7
Developed a business plan
4
Other
4
No steps taken
17
Offshoots
Individual Assistance
Beginning in 2005, follow-up farm visits supported
with grant funds to support professional services
received
The Farm Transfer Network of New England
Network of professionals and organizations
offering expertise in farm transfer and succession
New England Farm Transfer
Workshops
Thank You