Farm and ranch families across the country are beginning to realize that succession planning can’t wait any longer. Dr. Shannon Ferrell, an agricultural economist at Oklahoma State University, said with cattle markets strong, now is a great time to think about succession planning.
“I think people are saying, all right, this may be the opportune time for us to really start engaging with that topic. Every aspect of the ag industry has its own unique challenges when it comes to the transition, and ranching is no different. And I think lots of people kind of look at their herd transition like, all right, how do I get this herd into the hands of the next generation, and that’s really important. But beyond that, you know, your herd doesn’t operate in isolation. There are so many other assets, so many other business relationships, and so many other family relationships that all have to be coordinated with that transition as well. So, I think the beef industry is really starting to embrace the unique challenges that they face and try to look for unique solutions to those challenges.”
People may not realize just how much work goes into succession planning.
“People sometimes shortchange themselves. They think, Well, I’m just a cattle raiser. I’m like, Well, no, you’re not like, you’ve spent a lifetime developing the unique genetic fingerprint of your herd, and that’s a business value in itself. So, you’re not just transitioning the brand literally, but you’re also transitioning the brand figuratively, and so preserving that and making sure the next generation understands what your objectives have been in developing those genetics is really important as well. It’s not just the how of the ranching, it’s the why of the ranching.”
Ferrell said it’s vital to teach the next generation “why” in addition to “how.”
“In agriculture, we do a good job of teaching the next generation how on our ranch, you know, how do you do this? How do you that? But so often we don’t talk about the why. Why do we do things this way? What are our values, and what are we driving towards? So, I think in the ranching industry, it really kind of goes back to what we talked about previously. I’ve worked to develop a herd with this kind of characteristic, whether it’s commercial production or purebred genetics, but really helping the next generation understand here’s why we’ve gone this direction. And as you take the reins, how do you keep moving forward in that direction, or if you’re going to determine a different path for yourself, how do you pivot from where we are to where we’re going? So, it’s a strategic view with respect to your herd that we don’t often think about unless we sit down and really ask ourselves, what are we trying to accomplish?”