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Stine Customers Get Estate Planning Tips at Generating Success Conference

 

“Hope is not a good business strategy,” says Business-First Family speaker Jolene Brown, CSP.

It’s a powerful message that hit close to home for many farm families gathered in West Des Moines, Iowa, for Successful Farming’s Generating Success Conference sponsored by Stine Seed Company. The event, held August 11–12, 2011, at the West Des Moines Marriott, united more than 150 farmers of all ages to address a growing concern in the agricultural industry—estate planning.

Transitioning the family farm from one generation to the next can be a sensitive subject. Brown and Dr. Don Jonovic, a professional agricultural business advisor, were on-hand to give attendees advice on how to broach difficult questions and create estate plans to ensure the longevity of their operations.

Brown says she’s witnessed too many families make emotional decisions and mistakes that negatively affect their relationships and put their businesses in jeopardy. Common pitfalls include:

• Assuming genetic relationships equal good working relationships;
• Believing the family business can financially support all family members who want to work together;
• Presuming a conversation is a contract;
• Relying upon mind reading as a form of communication; and
• Failing to get plans in place when times are good.

Brown asked attendees to consider, “How many risks are you willing to take in hopes things will be as you wish?”

She recommends that every farm family establish seven key tools to protect their operation:

• Business Plan
• Goals
• Job Descriptions
• Compensation Package
• Code of Conduct
• Buy/Sell Agreement
• Meeting Procedures

Dr. Jonovic advises families to take a team approach to estate planning. He recommends consulting financial, insurance and tax experts, and also reminds farmers to review and adjust their plans to accommodate family, law and tax changes.

Stine invited customers, and their families, from across the Midwest to be their guests at the Generating Success Conference. Ron and Lisa Helmreich made the trip from Freeland, Mich. The Humm family—Ted and Sandy, Kent and Erica, Olan and Erin, along with their infant daughter, Maezee—loaded up the car and made the 10-hour drive from Breckenridge, Mich. They got a behind-the-scenes look at Stine Seed Farm in Adel, and a private tour of Meredith Corporation in downtown Des Moines. They were treated to a welcome reception in the Better Homes and Gardens test garden, followed by dinner in the board room and dessert in the test kitchen!

Both the Helmreich and Humm families say they received valuable advice and take-home tips at the Generating Success Conference that they can implement into their own businesses. 

“We already had some plans in place but the conference was a great way to get the whole family on the same page,” says Olan Humm. “My parents learned they need to get their estate plans in writing to ensure things are executed according to their wishes. My brother, Kent, and I realized we need to create a plan to bring our children into the operation—if they choose to pursue the opportunity.”

The Helmreich family also had an estate plan before the conference but was looking for advice to fine-tune it.

“As the older generation who is getting ready to pass on our business to our kids, everything seems fine from our perspective,” explains Helmreich. “The conference helped us realize that we need to ‘kick the door open’ and give our children permission to ask the tough questions and address their concerns.”

Stine would like to thank all the farm families who came to the Generating Success Conference. If you were unable to attend, you can read a complete recap in Successful Farming’s November issue.