As we enter the fourth quarter of the year, now is a good time to think about planning for the remainder of 2026, 2027 and beyond.
The Industry Shift
The swine industry is at a point where we’ve seen, and will continue to see, a significant number of retirements. Many producers have spent decades building successful businesses and are beginning to think about slowing down and entering the next phase of life.
As you think about your own operation and family, have you given serious thought to the future? Where do family members fit? How might you successfully transition the business to the next generation or new leadership?
Some of the most important and challenging work I’ve been involved in has been helping farm families navigate the transition of their operations to the next generation or new leadership. One thing I’ve learned from people who have done this well is that this work is never really complete.
Succession planning is an ongoing process. Even after ownership or leadership has successfully transferred, the next generation begins thinking about who may eventually enter the business and how to develop future leaders.
Key Questions for Your Operation
As you think about succession for your own operation, here are a few questions worth considering:
- Who is interested in returning to the business? Do you have family members already involved or planning to return? Are there others who may want to come back in the future? Just as importantly, do you have the right individuals with the skills and aptitude to eventually lead the business?
- What are the expectations for entering the family business? Is a buy-in required to move into ownership? Should family members gain experience somewhere else before returning to the farm? Clearly communicating expectations can establish ground rules that family members understand and can follow.
- Who else could step into leadership? Do you have strong employees who could move into leadership or more senior roles? If so, how can you continue developing them and preparing them for greater responsibility when you decide to slow down or take a step back?
- How will you financially transition the business? Spend time considering what you and your family will need in retirement. Think about how you’ll treat family members who may enter or purchase the business as well as those who may not return to the farm.
Don’t Wait for the “Perfect” Plan
There is no single correct way to handle succession. Every family, operation and ownership structure is different.
Take time to consider your needs and the needs of the business, then have conversations with family members, peers and your advisory team. Evaluate where your business is currently positioned and revisit any succession planning you’ve already started.
If you haven’t started yet, don’t wait for the perfect plan. Begin the conversation and start developing a roadmap for the future.
You’ve worked hard to build a successful business., Taking the time to plan for its next chapter can help you transition well and leave a lasting legacy.
