Sep. 19/24 Articles Print Page

It’s estimated that at least 40 per cent of Canada’s farmers will retire within the next decade, making farm succession planning a hot topic in agriculture. With the average age of farmers on the rise, the need for transition strategies is now more pressing than ever.

Succession looks different for every farm, as the transition path must meet the needs of the farming family and its business.

Common options include:

  • family succession, where the farm is passed down to a relative.
  • partnerships, which allow for a gradual transition of responsibilities.
  • the formation of corporations or LLCs to manage assets and operations.

Other options include selling the farm to a third party, leasing it to a successor, setting up trusts and estates, or even employee buyouts for long-term workers familiar with the farm’s operations.

Allana Minchau, a second-generation producer in southern Alberta, worked with her parents and her sister on succession planning and that planning has allowed her and her husband to continue to grow their operation.

“In 2012, a big piece of our succession planning was my parents – they sold my sister and I each a half section of land,” explained Minchau. “And we (purchased) that under the Next Generation Loan with AFSC. Under that loan and [with] me buying that land, I built up equity. I built up credit.

“(My husband and I) were able to buy more land that I likely wouldn’t have been able to purchase or maybe not qualify for if we wouldn’t have done that planning so far in advance.”

Farm transition planning includes tax planning, legal agreements, estate planning and relationship management. It can also involve financial discussions, such as exploring loan options for those looking to take over the farm.

Fortunately, there are a variety of loans specifically designed to help the next generation of farmers with farm transition. One such example is Agriculture Financial Services’ (AFSC) Next Generation Loan, available to eligible young, beginning, or returning farmers. It offers competitive interest rates plus an additional Next Generation interest rate incentive, as well as the ability to make interest-only payments.

Bridging the Gap

To ensure Alberta’s producers have the information they need to plan a successful transition, AFSC, along with our partners Farm Management Canada and MNP, is presenting a series of one-day workshops on farm transition. Three Bridging the Gap workshops are being offered throughout the province this fall and winter.

​​​These workshops are designed to engage multiple generations working together on the family farm in meaningful discussions to better understand each other’s concerns and considerations for the future of the farm.

Attendees will participate in sessions on planning, communication, navigating resistance, and working with their transition team. They will be encouraged to ask questions and discuss their farming situations, sharing insights and knowledge with one another. Attendees will also gain access to valuable resources and tools to help them along the way.

Tickets for the workshops are on sale now. There are two options – farmer (1 person) $42 plus GST or farm family (4 people) $105 plus GST. A limited number of complimentary tickets are also available for each workshop; simply use promo code AFSCBTG when purchasing your tickets.

To sign up, please use the links below. You will be taken to a third-party website, Eventbrite, to register. If you wish to learn about Eventbrite’s privacy policy, please see: Eventbrite Privacy Policy | Eventbrite Help Centre

Reserve your spot today