WEBVTT 00:00:10.509 --> 00:00:13.750 Welcome to the Bullvine Podcast, where we tackle 00:00:13.750 --> 00:00:16.149 the toughest challenges facing today's dairy 00:00:16.149 --> 00:00:19.010 industry. And what I'm about to share might be 00:00:19.010 --> 00:00:21.230 the most uncomfortable truth you'll hear this 00:00:21.230 --> 00:00:25.629 year. Your dairy legacy has a staggering 83 .5 00:00:25.629 --> 00:00:28.149 % chance of disappearing by the third generation. 00:00:29.039 --> 00:00:31.480 While you're obsessing over milk prices and feed 00:00:31.480 --> 00:00:34.420 costs, the real threat to your operation isn't 00:00:34.420 --> 00:00:37.619 in the barn. It's at your kitchen table. Today, 00:00:37.780 --> 00:00:40.000 we're ripping the lid off the family dairy time 00:00:40.000 --> 00:00:42.679 bomb that's ticking under operations across North 00:00:42.679 --> 00:00:46.280 America. You'll discover the hidden math, family 00:00:46.280 --> 00:00:49.200 dynamics, and strategic fixes that separate the 00:00:49.200 --> 00:00:52.719 16 .5 % of farms that survive generational transfers 00:00:52.719 --> 00:00:55.600 from the overwhelming majority that implode. 00:00:56.359 --> 00:00:58.920 This isn't just another podcast about succession 00:00:58.920 --> 00:01:02.140 planning. It's your wake -up call to ensure your 00:01:02.140 --> 00:01:04.739 life's work doesn't become another statistic. 00:01:05.340 --> 00:01:08.040 Let's dive in. All right, welcome to The Deep 00:01:08.040 --> 00:01:10.659 Dive, where we grab the bull by the horns and 00:01:10.659 --> 00:01:12.840 really get down to what matters in the dairy 00:01:12.840 --> 00:01:16.000 industry. Glad to be digging in. And today, well, 00:01:16.120 --> 00:01:17.840 we're kicking things off with a statistic that 00:01:17.840 --> 00:01:22.000 should make every family dairy operation set 00:01:22.000 --> 00:01:27.450 up and take notice. A huge number. 83 .5 % of 00:01:27.450 --> 00:01:29.390 family dairy farms don't make it to the third 00:01:29.390 --> 00:01:31.689 generation. Wow. Just let that sink in for a 00:01:31.689 --> 00:01:34.590 second. Is your farm potentially facing that 00:01:34.590 --> 00:01:37.750 same uphill battle? Yeah, it's a tough question. 00:01:38.010 --> 00:01:40.349 It's a direct question, absolutely. But frankly, 00:01:40.609 --> 00:01:42.849 it's one we can't afford to sugarcoat here. No, 00:01:42.890 --> 00:01:45.010 definitely not. It's a sobering truth, really. 00:01:45.329 --> 00:01:47.609 We all know the daily grind, right? The constant 00:01:47.609 --> 00:01:51.030 juggling of milk prices, feed costs, the weather. 00:01:51.090 --> 00:01:54.010 Oh, yeah. The day -to -day. But the reality is 00:01:54.010 --> 00:01:56.930 those numbers. They don't lie. Often the biggest 00:01:56.930 --> 00:01:59.150 threat to a farm's long -term survival isn't 00:01:59.150 --> 00:02:01.230 just market swings. It's closer to home. It's 00:02:01.230 --> 00:02:02.950 what happens within the family. It's the lack 00:02:02.950 --> 00:02:05.370 of a solid plan for the future. It's like the 00:02:05.370 --> 00:02:07.609 succession elephant right there in the milking 00:02:07.609 --> 00:02:09.870 parlor. The succession elephant. I like that. 00:02:09.969 --> 00:02:11.710 We're calling this the family dairy time bomb. 00:02:11.889 --> 00:02:15.610 Aptly named. Because it's not some distant worry 00:02:15.610 --> 00:02:19.300 for... way down the road. It's a present danger 00:02:19.300 --> 00:02:22.039 if we're not proactive. Absolutely. It sneaks 00:02:22.039 --> 00:02:24.319 up on you. Think about it. The USDA tells us 00:02:24.319 --> 00:02:27.460 97 % of farms are family -owned. That's almost... 00:02:27.710 --> 00:02:30.270 All of them. Right. The vast majority. Yet surveys 00:02:30.270 --> 00:02:33.509 time and again show that only around 20 percent 00:02:33.509 --> 00:02:36.090 of farmers feel truly confident in their succession 00:02:36.090 --> 00:02:38.710 plan. That's a huge gap. It's a Grand Canyon 00:02:38.710 --> 00:02:41.949 size gap between, you know, good intentions and 00:02:41.949 --> 00:02:44.250 actually being prepared. It really highlights 00:02:44.250 --> 00:02:46.889 this disconnect, doesn't it? Between wanting 00:02:46.889 --> 00:02:50.090 to pass the farm on and having a concrete roadmap 00:02:50.090 --> 00:02:53.159 to actually make it happen. And we've all heard 00:02:53.159 --> 00:02:55.159 that old saying, you know, shirt sleeves to shirt 00:02:55.159 --> 00:02:57.319 sleeves in three generations or the third generation 00:02:57.319 --> 00:02:59.319 losing the farm. Yeah, it's almost folklore. 00:03:00.340 --> 00:03:02.300 And it can be easy to just brush it off like, 00:03:02.360 --> 00:03:04.840 oh, that won't happen to us. But then you look 00:03:04.840 --> 00:03:06.800 at the actual data, like from the Small Business 00:03:06.800 --> 00:03:08.900 Administration. No, it's not pretty. Not at all. 00:03:09.210 --> 00:03:12.129 Less than a third of family businesses even make 00:03:12.129 --> 00:03:14.530 it to the second generation. And only about, 00:03:14.629 --> 00:03:18.729 what, 16 .5 % survived to the third? 16 .5%. 00:03:18.729 --> 00:03:21.129 Wow. So you realize this isn't just some old 00:03:21.129 --> 00:03:23.909 wives' tale. It's a statistical reality. It's 00:03:23.909 --> 00:03:26.330 backed by data across different sectors, different 00:03:26.330 --> 00:03:29.530 cultures, even going back centuries. And let's 00:03:29.530 --> 00:03:32.710 be honest, the dairy sector, our sector, has 00:03:32.710 --> 00:03:35.669 its own unique set of hurdles. It makes the succession 00:03:35.669 --> 00:03:39.770 puzzle even trickier than, say, a family hardware 00:03:39.770 --> 00:03:42.330 store. Oh, definitely. You've got factors that 00:03:42.330 --> 00:03:44.729 just amplify the challenge. Like what specifically? 00:03:45.229 --> 00:03:47.409 Well, first off, it's a 247 business. There's 00:03:47.409 --> 00:03:49.990 no clocking out at five. Nope. Cows don't take 00:03:49.990 --> 00:03:52.580 weekends. Exactly. Then there's the massive investment 00:03:52.580 --> 00:03:54.860 needed in specialized equipment. Think robotics, 00:03:54.939 --> 00:03:57.199 feeding systems. It's always evolving, always 00:03:57.199 --> 00:03:59.639 expensive. And the regulation. Don't get me started. 00:03:59.879 --> 00:04:02.199 Right. The regulatory landscape can feel like, 00:04:02.219 --> 00:04:05.300 well, like navigating a maze blindfolded sometimes. 00:04:05.560 --> 00:04:07.659 Yeah. So all of that just makes handing over 00:04:07.659 --> 00:04:10.479 the reins that much harder. It absolutely amplifies 00:04:10.479 --> 00:04:12.439 the challenges. And you know, we talk a lot about 00:04:12.439 --> 00:04:14.879 sustainability these days. Usually meaning environmental 00:04:14.879 --> 00:04:16.939 stuff. Right. Environmental stewardship, which 00:04:16.939 --> 00:04:20.189 is crucial, of course. We need to apply that 00:04:20.189 --> 00:04:23.410 same critical thinking to the operational sustainability. 00:04:23.610 --> 00:04:26.769 The basic question, will your farm still exist, 00:04:26.970 --> 00:04:29.550 still be running 30 years from now? That's the 00:04:29.550 --> 00:04:31.930 core question. Remember that Farm Journal survey? 00:04:32.810 --> 00:04:37.310 80 % of farmers intend to pass the farm on. Good 00:04:37.310 --> 00:04:40.410 intentions. Yeah. Only about 20 % feel confident 00:04:40.410 --> 00:04:42.370 they'll actually manage it successfully. Intent 00:04:42.370 --> 00:04:44.750 versus confidence, big difference. Huge difference. 00:04:44.870 --> 00:04:49.000 And then that Iowa State study. Half of farmers 00:04:49.000 --> 00:04:52.439 didn't even have a basic estate plan. Half. That's 00:04:52.439 --> 00:04:55.500 shocking. And nearly three quarters hadn't identified 00:04:55.500 --> 00:04:58.420 a clear successor. So the picture is pretty clear. 00:04:58.500 --> 00:05:00.180 Good intentions just aren't enough. You need 00:05:00.180 --> 00:05:02.740 concrete action. Okay. Now, I know when you start 00:05:02.740 --> 00:05:04.839 talking farm transitions, one of the first things 00:05:04.839 --> 00:05:06.839 that pops into a lot of farmers' minds, something 00:05:06.839 --> 00:05:08.720 we hear about at the bullvine too, is estate 00:05:08.720 --> 00:05:11.439 taxes. Ah, yes. The tax man. It's always a concern. 00:05:11.620 --> 00:05:15.319 It's a legitimate concern for sure. But is it 00:05:15.319 --> 00:05:18.029 the main killer? Well, look. Tax planning is 00:05:18.029 --> 00:05:19.709 definitely a piece of the succession puzzle. 00:05:19.850 --> 00:05:22.750 You can't ignore it. Right. But it's crucial 00:05:22.750 --> 00:05:26.389 to understand it's rarely the sole reason or 00:05:26.389 --> 00:05:30.089 even the primary reason that family farms fail 00:05:30.089 --> 00:05:32.209 to make it through the generations. So what are 00:05:32.209 --> 00:05:34.829 the real culprits then? Think about the farms 00:05:34.829 --> 00:05:37.610 you've seen that didn't make it. More often than 00:05:37.610 --> 00:05:40.730 not, the root causes are things like, well, an 00:05:40.730 --> 00:05:44.290 inability to adapt and scale the operation. To 00:05:44.290 --> 00:05:46.209 stay competitive. Keeping up with the times. 00:05:46.529 --> 00:05:49.829 Exactly. Or unresolved conflicts simmering within 00:05:49.829 --> 00:05:51.750 the family. That's a big one. Family dynamics, 00:05:52.050 --> 00:05:54.680 yeah. Or simply the next generation. Maybe they 00:05:54.680 --> 00:05:57.319 lack the passion, that fire in the belly, or 00:05:57.319 --> 00:05:58.939 maybe they just haven't developed the necessary 00:05:58.939 --> 00:06:01.480 management skills to take the farm forward successfully. 00:06:01.699 --> 00:06:04.019 Those sound like the silent killers you mentioned. 00:06:04.139 --> 00:06:05.600 That's exactly what they are, the silent killers 00:06:05.600 --> 00:06:07.959 of family farm legacies. Less dramatic than a 00:06:07.959 --> 00:06:10.300 tax bill, maybe, but often far more destructive. 00:06:10.680 --> 00:06:12.980 Okay, so let's really dig into the nitty gritty 00:06:12.980 --> 00:06:15.500 here. What are these specific challenges within 00:06:15.500 --> 00:06:17.680 dairy that make these generational transitions 00:06:17.680 --> 00:06:20.870 so darn difficult? Right. Dairy does have some 00:06:20.870 --> 00:06:23.970 very distinct hurdles. First and foremost, you've 00:06:23.970 --> 00:06:27.029 got the sheer capital intensity of modern operations. 00:06:27.269 --> 00:06:29.930 The money. Always the money. Always the money. 00:06:29.990 --> 00:06:32.009 We're not just talking land prices, which are 00:06:32.009 --> 00:06:35.420 significant enough. Think about the investment 00:06:35.420 --> 00:06:38.120 in things like robotic milking systems. Those 00:06:38.120 --> 00:06:40.480 aren't cheap. Not even close. We're talking upwards 00:06:40.480 --> 00:06:43.819 of $200 ,000 per unit in many cases. Per unit. 00:06:43.920 --> 00:06:48.279 Wow. Yeah. And a 2024 Compere financial report 00:06:48.279 --> 00:06:51.259 really hammered this home. They basically said, 00:06:51.339 --> 00:06:54.319 with the skyrocketing costs and the trend towards 00:06:54.319 --> 00:06:57.860 larger scale, the old model. The kids just buy 00:06:57.860 --> 00:07:00.920 out the parents. Exactly. That model, where the 00:07:00.920 --> 00:07:02.980 next generation simply buys out the retiring 00:07:02.980 --> 00:07:05.500 folks while keeping the business afloat financially, 00:07:05.899 --> 00:07:08.639 it's becoming increasingly unrealistic for many. 00:07:08.720 --> 00:07:11.000 The numbers just don't pencil out anymore. So 00:07:11.000 --> 00:07:13.259 it puts the next generation in a really tough 00:07:13.259 --> 00:07:15.879 spot right from day one, saddled with huge debt 00:07:15.879 --> 00:07:17.800 before they even, you know, make their mark. 00:07:17.879 --> 00:07:19.839 Precisely. And then you factor in the lifestyle 00:07:19.839 --> 00:07:21.540 commitment we talked about. It's unlike almost 00:07:21.540 --> 00:07:23.819 any other industry. Not a nine to five, that's 00:07:23.819 --> 00:07:26.639 for sure. No way. It's round -the -clock dedication. 00:07:26.959 --> 00:07:29.459 So anyone thinking about taking over isn't just 00:07:29.459 --> 00:07:31.899 making a business decision. They're choosing 00:07:31.899 --> 00:07:34.279 a way of life, really. It affects everything. 00:07:34.480 --> 00:07:36.920 Everything. Their family, their time. Their whole 00:07:36.920 --> 00:07:39.879 existence. Interestingly, some research out of 00:07:39.879 --> 00:07:43.879 Brazil in 2023 actually found a positive link 00:07:43.879 --> 00:07:48.560 between bigger farm size and actually doing formal 00:07:48.560 --> 00:07:50.800 succession planning. Really? So bigger farms 00:07:50.800 --> 00:07:53.399 are more likely to plan? It seems so. It suggests 00:07:53.399 --> 00:07:56.060 that maybe at a certain scale, with the increased 00:07:56.060 --> 00:07:58.639 complexity and the bigger financial stakes, the 00:07:58.639 --> 00:08:00.959 need for planning becomes more obvious. You can't 00:08:00.959 --> 00:08:03.500 just wing it. That makes sense. Or maybe smaller 00:08:03.500 --> 00:08:06.680 operations are just too swamped day to day. That 00:08:06.680 --> 00:08:08.779 can be part of it, too. The sheer daily demands 00:08:08.779 --> 00:08:10.959 might leave less time, less mental bandwidth 00:08:10.959 --> 00:08:13.600 for that long term strategic thinking. Yeah. 00:08:13.660 --> 00:08:16.120 When you're dealing with a sick cow or a broken 00:08:16.120 --> 00:08:18.480 feeder, next year's transition plan feels pretty 00:08:18.480 --> 00:08:20.980 far away. Exactly. And beyond the tangible stuff, 00:08:21.079 --> 00:08:23.079 the land, the cows, the equipment and the crazy 00:08:23.079 --> 00:08:25.459 workload, there's all that knowledge, isn't there? 00:08:25.540 --> 00:08:27.720 The dairy wisdom. That's a good way to put it. 00:08:27.740 --> 00:08:29.980 That intellectual capital, the deep understanding 00:08:29.980 --> 00:08:34.440 of. Herd genetics, repro cycles, nutrition quirks, 00:08:34.500 --> 00:08:37.120 keeping that milk quality perfect. Stuff you 00:08:37.120 --> 00:08:40.480 can't learn overnight. Not at all. And that invaluable 00:08:40.480 --> 00:08:43.539 knowledge needs to be transferred just as deliberately 00:08:43.539 --> 00:08:47.539 as the physical assets. A 2023 study, I think 00:08:47.539 --> 00:08:49.360 it was in the Journal of Agribusiness and Rural 00:08:49.360 --> 00:08:52.179 Development Research, identified farm transfer 00:08:52.179 --> 00:08:55.580 and farm handover as key patterns. Okay. And 00:08:55.580 --> 00:08:58.460 both of those require getting the potential successors 00:08:58.460 --> 00:09:02.049 involved actively and early. You need that overlap 00:09:02.049 --> 00:09:04.769 to make sure that vital, often unspoken knowledge 00:09:04.769 --> 00:09:07.309 isn't lost. Right. You can't just hand over the 00:09:07.309 --> 00:09:09.830 keys and say, good luck. Definitely not. Yeah. 00:09:10.049 --> 00:09:12.409 Expecting it all to magically transfer is a recipe 00:09:12.409 --> 00:09:14.570 for failure. So it sounds like the deck is kind 00:09:14.570 --> 00:09:16.830 of inherently stacked against a smooth transition 00:09:16.830 --> 00:09:19.049 in Derry, unless there's a really conscious, 00:09:19.269 --> 00:09:21.250 really well thought out effort. I think that's 00:09:21.250 --> 00:09:23.110 fair to say it requires intentionality. And that 00:09:23.110 --> 00:09:25.009 brings us to what you've identified as the three 00:09:25.009 --> 00:09:27.750 critical elements for either survival or, well, 00:09:27.830 --> 00:09:31.299 failure in this process. Unity. Talent and drive 00:09:31.299 --> 00:09:34.120 and asset growth. That's right. Those are the 00:09:34.120 --> 00:09:36.120 pillars. Let's start by unpacking this idea of 00:09:36.120 --> 00:09:38.580 unity. You emphasize it goes way beyond just 00:09:38.580 --> 00:09:40.840 everyone in the family getting along at Thanksgiving 00:09:40.840 --> 00:09:43.259 dinner. Oh, absolutely. That romantic notion, 00:09:43.419 --> 00:09:45.740 you know, that family harmony will just automatically 00:09:45.740 --> 00:09:48.759 prevail once the next generation is involved. 00:09:49.159 --> 00:09:51.639 It's a dangerously naive assumption. Just because 00:09:51.639 --> 00:09:53.440 you shared a bunk bed doesn't mean you can run 00:09:53.440 --> 00:09:56.159 a multi -million dollar business together. Exactly. 00:09:56.159 --> 00:09:59.600 The stakes are much higher. livelihoods, significant 00:09:59.600 --> 00:10:03.740 assets. It's a different ballgame. Legal experts 00:10:03.740 --> 00:10:06.299 who specialize in this, like Sandin Law, often 00:10:06.299 --> 00:10:07.899 talk about the challenge of balancing things. 00:10:08.059 --> 00:10:10.399 Balancing what? Balancing the needs and expectations 00:10:10.399 --> 00:10:12.679 of the kids who stay on the farm versus the kids 00:10:12.679 --> 00:10:15.539 who leave. How do you distribute assets fairly 00:10:15.539 --> 00:10:18.460 and keep the farm financially viable? It's a 00:10:18.460 --> 00:10:20.840 real tightrope walk. A very tough balancing act. 00:10:21.019 --> 00:10:23.679 You've even got a table here outlining what unity 00:10:23.679 --> 00:10:27.190 is and... maybe more importantly, what it isn't 00:10:27.190 --> 00:10:30.049 in a family farm business. Let's hit a few of 00:10:30.049 --> 00:10:32.789 these. Unity isn't about everyone always agreeing. 00:10:33.049 --> 00:10:37.509 Correct. True unity, in this context, is about 00:10:37.509 --> 00:10:39.750 creating an environment where everyone feels 00:10:39.750 --> 00:10:43.250 safe to speak up, even if they disagree, even 00:10:43.250 --> 00:10:45.269 if it's uncomfortable. So disagreement is okay? 00:10:46.620 --> 00:10:48.740 Healthy, even? It can be very healthy. Yeah. 00:10:48.860 --> 00:10:51.220 It leads to more robust discussion, better decisions 00:10:51.220 --> 00:10:53.759 in the end, suppressing different opinions just 00:10:53.759 --> 00:10:57.539 for a superficial piece. That's weak unity. Okay. 00:10:57.580 --> 00:11:00.100 And it's also not about needing total consensus 00:11:00.100 --> 00:11:02.600 on every single decision because that sounds 00:11:02.600 --> 00:11:04.620 impossible. It pretty much is impossible. And 00:11:04.620 --> 00:11:07.000 trying for it leads to paralysis. Nothing gets 00:11:07.000 --> 00:11:09.720 done. So what's the alternative? Intentional 00:11:09.720 --> 00:11:11.799 unity means that even if someone doesn't fully 00:11:11.799 --> 00:11:14.279 agree with a decision, once it's made, everyone 00:11:14.279 --> 00:11:16.750 commits. They get on board, work together to 00:11:16.750 --> 00:11:19.370 make it succeed. It's about trust and shared 00:11:19.370 --> 00:11:21.830 commitment to the farm's goals, even with individual 00:11:21.830 --> 00:11:23.809 reservations. Right. And this one might hit home 00:11:23.809 --> 00:11:25.990 for some families. Unity doesn't mean everyone 00:11:25.990 --> 00:11:27.929 has to be best friends outside of work. Exactly. 00:11:27.929 --> 00:11:29.870 Look, positive relationships help, obviously. 00:11:30.250 --> 00:11:32.350 But the foundation of unity in the business is 00:11:32.350 --> 00:11:35.549 about clear professional expectations. How do 00:11:35.549 --> 00:11:37.730 we interact here on the farm during business 00:11:37.730 --> 00:11:40.009 hours? Respecting roles and responsibilities? 00:11:40.549 --> 00:11:43.629 Yes. Mutual respect, shared commitment to the 00:11:43.629 --> 00:11:45.710 farm's success, regardless of whether you hang 00:11:45.710 --> 00:11:48.169 out together on Saturday night. Okay. And this 00:11:48.169 --> 00:11:51.970 one feels crucial for multi -gen farms. Unity 00:11:51.970 --> 00:11:55.600 isn't always about strict equality in pay. ownership, 00:11:55.679 --> 00:11:58.679 or responsibilities. This is a big one. Fairness 00:11:58.679 --> 00:12:01.100 in business isn't always the same as absolute 00:12:01.100 --> 00:12:04.860 equality. Oh, so? Unity here means having clearly 00:12:04.860 --> 00:12:08.500 defined roles, clear responsibilities, and transparent 00:12:08.500 --> 00:12:10.779 compensation structures that everyone understands 00:12:10.779 --> 00:12:13.700 and accepts. It's about setting realistic expectations 00:12:13.700 --> 00:12:16.759 up front. How does the next generation earn their 00:12:16.759 --> 00:12:19.100 way in? What's the exit plan for the senior generation? 00:12:19.379 --> 00:12:22.710 How are jobs divided? All agreed upon proactively. 00:12:22.870 --> 00:12:25.610 Not assumed. Never assumed. You quote Daryl Wade 00:12:25.610 --> 00:12:27.970 from Farm Life Financial Planning Group, saying 00:12:27.970 --> 00:12:30.070 that not having these tough conversations inevitably 00:12:30.070 --> 00:12:32.269 leads to bigger headaches later. That rings true. 00:12:32.769 --> 00:12:34.950 Avoidance just makes it worse. Absolutely. He 00:12:34.950 --> 00:12:36.929 stresses having regular family business meetings, 00:12:37.110 --> 00:12:39.570 separate from the day -to -day operational chat. 00:12:39.750 --> 00:12:42.149 Dedicated time for the tough stuff. Exactly. 00:12:42.250 --> 00:12:44.389 A structured space to tackle these succession 00:12:44.389 --> 00:12:47.299 issues before they blow up. Intentional unity 00:12:47.299 --> 00:12:50.279 doesn't just happen. It takes effort, communication, 00:12:50.720 --> 00:12:53.179 maybe even some structured arguments. Okay, so 00:12:53.179 --> 00:12:55.879 unity is more about structure and professionalism 00:12:55.879 --> 00:12:57.980 than just warm, fuzzy feelings. Pretty much, 00:12:58.080 --> 00:13:00.639 yeah. The second critical element... talent and 00:13:00.639 --> 00:13:03.460 drive in the next generation. And you make a 00:13:03.460 --> 00:13:06.440 really key point that entrepreneurial fire, the 00:13:06.440 --> 00:13:09.500 thing that maybe started the farm, it isn't automatically 00:13:09.500 --> 00:13:12.259 passed down like eye color. No, it's very natural 00:13:12.259 --> 00:13:14.620 for it to diminish, actually. The founding generation 00:13:14.620 --> 00:13:17.940 often starts with less, right? They operate out 00:13:17.940 --> 00:13:20.440 of necessity, maybe scarcity. Yeah. That breeds 00:13:20.440 --> 00:13:23.039 incredible work ethic, huge sacrifices. Built 00:13:23.039 --> 00:13:25.220 it from scratch. Right. Subsequent generations 00:13:25.220 --> 00:13:27.100 often grow up with more comfort, more security. 00:13:27.200 --> 00:13:30.419 So that initial intense, almost primal drive, 00:13:30.600 --> 00:13:33.320 it can naturally lessen. So farms need to actively 00:13:33.320 --> 00:13:35.580 counter that. Sustainable family farms recognize 00:13:35.580 --> 00:13:37.879 this. They put strategies in place. They know 00:13:37.879 --> 00:13:40.340 the business can't thrive long term if the owners 00:13:40.340 --> 00:13:42.379 lack drive, if they aren't bringing high value, 00:13:42.519 --> 00:13:44.519 if they aren't willing to adapt. And there seems 00:13:44.519 --> 00:13:46.940 to be a wider issue, too, with just getting young 00:13:46.940 --> 00:13:49.740 talent into farming in general. The average age 00:13:49.740 --> 00:13:52.159 keeps climbing. There is indeed. The Canadian 00:13:52.159 --> 00:13:55.059 Bar Association pointed this out. Farming is 00:13:55.059 --> 00:13:57.879 getting more capital intensive, more reliant 00:13:57.879 --> 00:14:00.899 on complex tech, advanced management skills. 00:14:01.120 --> 00:14:03.019 Needs a different skill set, maybe. It does. 00:14:03.240 --> 00:14:05.960 And at the same time, the percentage of farmers 00:14:05.960 --> 00:14:09.539 under 35 has plummeted. It went from 20 % back 00:14:09.539 --> 00:14:14.759 in 91 to just 8 % in 2021. 8 %! That's a tiny 00:14:14.759 --> 00:14:17.500 pipeline. It's a very real challenge. Finding 00:14:17.500 --> 00:14:19.919 and cultivating that next generation of skilled 00:14:19.919 --> 00:14:22.830 dairy operators is getting harder. And even when 00:14:22.830 --> 00:14:24.690 the next generation is involved working hard 00:14:24.690 --> 00:14:26.809 every day, it doesn't guarantee they see a clear 00:14:26.809 --> 00:14:28.809 path forward for themselves, does it? No, and 00:14:28.809 --> 00:14:31.629 that can be really disheartening. That 2024 Compure 00:14:31.629 --> 00:14:34.389 report mentioned this too. Often, the kids are 00:14:34.389 --> 00:14:37.129 deep in the labor, maybe even management, but 00:14:37.129 --> 00:14:39.590 they lack a clear, communicated vision for their 00:14:39.590 --> 00:14:42.009 future role. Like ownership or real decision 00:14:42.009 --> 00:14:44.870 -making power. Exactly. And that uncertainty, 00:14:45.049 --> 00:14:47.610 it can really stifle their long -term drives. 00:14:48.110 --> 00:14:50.830 Why pour your heart and soul into it if you don't 00:14:50.830 --> 00:14:53.309 see a tangible path forward, a real stake in 00:14:53.309 --> 00:14:55.629 the future? Yeah, that makes sense. And you also 00:14:55.629 --> 00:14:57.809 brought up this idea of the hidden succession 00:14:57.809 --> 00:15:00.250 challenge technology transfer. It's not just 00:15:00.250 --> 00:15:02.769 about breeding cows anymore. Not by a long shot. 00:15:03.190 --> 00:15:06.970 Modern dairy is so tech heavy. Automated milking, 00:15:07.090 --> 00:15:10.210 advanced genetic software, complex data analytics 00:15:10.210 --> 00:15:12.570 for herd management, financials. The list goes 00:15:12.570 --> 00:15:15.009 on. It really does. The next generation needs 00:15:15.009 --> 00:15:16.730 to be more than just comfortable with this stuff. 00:15:17.080 --> 00:15:19.500 They need to be proficient. It's a core competency 00:15:19.500 --> 00:15:22.899 now, alongside the traditional skills. Failing 00:15:22.899 --> 00:15:25.740 to transfer that tech aptitude, that's a critical 00:15:25.740 --> 00:15:28.179 but often overlooked failure point. The farm 00:15:28.179 --> 00:15:30.639 of tomorrow needs tech skills. Absolutely. And 00:15:30.639 --> 00:15:32.940 you included that example, kind of sad really, 00:15:33.100 --> 00:15:36.080 of Loveland Dairy Whip in Ohio. The ice cream 00:15:36.080 --> 00:15:38.279 shop with dairy roots. Yeah, closed after 31 00:15:38.279 --> 00:15:40.039 years because the next generation just wasn't 00:15:40.039 --> 00:15:42.399 interested. A clear consequence of that transfer 00:15:42.399 --> 00:15:45.539 failing. It really underscores it. When the passion 00:15:46.029 --> 00:15:50.269 the knowledge, the interest. When it isn't successfully 00:15:50.269 --> 00:15:53.629 passed down, legacies can just end. You can't 00:15:53.629 --> 00:15:55.669 assume they'll want it. You have to actively 00:15:55.669 --> 00:15:58.889 nurture that interest and capability. Okay, so 00:15:58.889 --> 00:16:01.570 we've got unity, talent, and drive. The third 00:16:01.570 --> 00:16:03.450 essential piece you talked about is asset growth, 00:16:03.610 --> 00:16:06.049 what you called the uncomfortable math. Yeah, 00:16:06.070 --> 00:16:08.389 uncomfortable because it forces a hard look at 00:16:08.389 --> 00:16:10.710 the financial realities. Which are? Which are 00:16:10.710 --> 00:16:13.850 that dairy farming takes huge capital. And every 00:16:13.850 --> 00:16:16.070 time another family member comes back to the 00:16:16.070 --> 00:16:18.929 farm, wanting to work, wanting ownership eventually, 00:16:19.210 --> 00:16:21.629 that's another household needing financial support 00:16:21.629 --> 00:16:24.110 from the business. Another mouth to feed, essentially, 00:16:24.289 --> 00:16:27.350 from the farm's profits. Exactly. So without 00:16:27.350 --> 00:16:29.629 corresponding strategic growth in the farm's 00:16:29.629 --> 00:16:33.090 assets, it's profitability. The basic math just 00:16:33.090 --> 00:16:35.289 doesn't work long term. You can't just maintain 00:16:35.289 --> 00:16:37.049 the status quo if you're adding more families 00:16:37.049 --> 00:16:39.870 to the draw. You have to grow the pie. It seems 00:16:39.870 --> 00:16:42.350 straightforward, but easy to ignore in the daily 00:16:42.350 --> 00:16:44.309 rush. You have to ask, right? If two kids come 00:16:44.309 --> 00:16:46.470 back, how much more net profit do we need just 00:16:46.470 --> 00:16:48.289 to keep everyone at the same standard of living? 00:16:48.830 --> 00:16:52.090 Precisely. And while that Brazil research linked 00:16:52.090 --> 00:16:54.610 bigger scale to more planning. Which makes sense. 00:16:54.769 --> 00:16:57.129 It does. But they also made a crucial point. 00:16:57.669 --> 00:17:01.409 Scale alone isn't the magic bullet. Oh. The communication, 00:17:01.669 --> 00:17:03.909 the strategic planning that goes with that scale, 00:17:03.970 --> 00:17:06.609 that's just as critical, maybe more so. Yeah. 00:17:06.859 --> 00:17:09.519 You can have a big, efficient farm, but if the 00:17:09.519 --> 00:17:11.819 financial structure can't support multiple families 00:17:11.819 --> 00:17:15.160 or if there's no plan for future growth, succession 00:17:15.160 --> 00:17:17.559 is still going to hit major roadblocks. Okay. 00:17:17.619 --> 00:17:20.079 So given all these potential traps, what can 00:17:20.079 --> 00:17:22.619 dairy farmers actually do? How do they defuse 00:17:22.619 --> 00:17:26.140 this family dairy time bomb? You've got a five 00:17:26.140 --> 00:17:28.599 -step action plan. Step one, assess your current 00:17:28.599 --> 00:17:31.019 readiness. This is ground zero. You need some 00:17:31.019 --> 00:17:33.200 honest self -reflection, maybe even uncomfortable 00:17:33.200 --> 00:17:35.759 reflection. Asking the hard questions. Exactly. 00:17:35.759 --> 00:17:38.140 Like, do we have a written, up -to -date succession 00:17:38.140 --> 00:17:40.519 plan? And has everyone involved actually reviewed 00:17:40.519 --> 00:17:42.799 it and agreed to it? Okay. What else? Have we 00:17:42.799 --> 00:17:45.000 clearly identified potential successors? And 00:17:45.000 --> 00:17:47.279 more importantly, are their current skills and 00:17:47.279 --> 00:17:49.519 training genuinely lining up with what the farm 00:17:49.519 --> 00:17:51.619 will need in the future, not just what it needs 00:17:51.619 --> 00:17:54.839 now? Future needs. Got it. Have we actually sat 00:17:54.839 --> 00:17:57.279 down and crunched the numbers? Calculated the 00:17:57.279 --> 00:17:59.680 long -term financial needs for every family member 00:17:59.680 --> 00:18:01.940 who plans to be involved. The uncomfortable math 00:18:01.940 --> 00:18:05.299 again. Yep. And finally, is our current growth 00:18:05.299 --> 00:18:08.940 path realistic? Is it actually enough to meet 00:18:08.940 --> 00:18:11.460 those future financial needs? And if the answer 00:18:11.460 --> 00:18:14.099 to any of those is no... Then your operation 00:18:14.099 --> 00:18:17.900 is likely in that danger zone. A no to even one 00:18:17.900 --> 00:18:21.539 puts you at significant risk. Experts generally 00:18:21.539 --> 00:18:25.009 say a comprehensive plan needs... Well, things 00:18:25.009 --> 00:18:26.950 like a three -year and five -year business plan. 00:18:27.049 --> 00:18:29.549 Okay. A unanimous shareholder agreement if you're 00:18:29.549 --> 00:18:32.150 incorporated. Clear lease agreements if land 00:18:32.150 --> 00:18:35.430 is rented. Updated financials, obviously. And 00:18:35.430 --> 00:18:38.130 explicit plans for grooming, training, knowledge 00:18:38.130 --> 00:18:40.589 transfer. Needs to be on paper, not just in someone's 00:18:40.589 --> 00:18:43.490 head. Absolutely. Documented, agreed upon. Okay. 00:18:43.549 --> 00:18:45.970 Tangible items. Step two in your plan, develop 00:18:45.970 --> 00:18:47.789 financial structures that actually support the 00:18:47.789 --> 00:18:49.769 transition. What does that look like practically? 00:18:50.069 --> 00:18:51.589 This often needs some creative thinking about 00:18:51.589 --> 00:18:54.180 structure, legal, and financial. The Canadian 00:18:54.180 --> 00:18:56.559 Bar Association had a good case study. What was 00:18:56.559 --> 00:18:59.059 the approach? Splitting the farm into two companies. 00:18:59.640 --> 00:19:02.940 One holds the main long -term assets land, big 00:19:02.940 --> 00:19:05.559 machinery, often kept by the senior generation 00:19:05.559 --> 00:19:08.039 initially. Okay, an asset holding company? Right. 00:19:08.160 --> 00:19:10.339 And a second company operates the actual farming 00:19:10.339 --> 00:19:13.740 business. It leases the assets from the holding 00:19:13.740 --> 00:19:17.019 company. And this operating company is what the 00:19:17.019 --> 00:19:19.859 successor generation gradually buys into. Ah, 00:19:19.940 --> 00:19:21.819 so they don't have to buy the whole farm outright 00:19:21.819 --> 00:19:25.140 at the start. Exactly. It massively eases the 00:19:25.140 --> 00:19:27.400 financial burden on them. They don't need that 00:19:27.400 --> 00:19:30.480 huge chunk of capital up front. Plus, it gives 00:19:30.480 --> 00:19:33.039 the retiring generation a steady income stream 00:19:33.039 --> 00:19:36.000 via the lease payments. That's clever. A win 00:19:36.000 --> 00:19:38.579 -win, potentially. It can be. The underlying 00:19:38.579 --> 00:19:41.640 idea is that sustainable farms push each generation 00:19:41.640 --> 00:19:44.000 to learn the skills needed for the future, not 00:19:44.000 --> 00:19:46.559 just the past. And the financial structure should 00:19:46.559 --> 00:19:48.599 support that forward look. Okay, interesting 00:19:48.599 --> 00:19:50.940 structure. Step three sounds simple, but maybe 00:19:50.940 --> 00:19:53.589 isn't? Start meaningful family conversations 00:19:53.589 --> 00:19:56.549 and start them now. Deceptively simple, absolutely. 00:19:56.930 --> 00:19:59.609 That Penn State Extension study, it consistently 00:19:59.609 --> 00:20:01.849 found communication is the hardest part of farm 00:20:01.849 --> 00:20:04.069 transitions. The biggest hurdle. Often, yes. 00:20:04.750 --> 00:20:07.109 And they stress that successful transitions, 00:20:07.369 --> 00:20:10.170 especially in complex operations like dairy, 00:20:10.349 --> 00:20:13.289 can realistically take five to ten years. Five 00:20:13.289 --> 00:20:15.980 to ten years. even when things go well. Even 00:20:15.980 --> 00:20:19.440 under the best circumstances, with everyone cooperating. 00:20:19.700 --> 00:20:22.500 That timeline alone shows why you need to start 00:20:22.500 --> 00:20:25.759 talking now. Urgently. Can't wait until retirement 00:20:25.759 --> 00:20:28.539 is looming. Definitely not. The Bullvine actually 00:20:28.539 --> 00:20:31.140 had an article on this back in February 24, ensuring 00:20:31.140 --> 00:20:34.319 the future. It's stressed starting early, having 00:20:34.319 --> 00:20:37.480 open, honest talks about everyone's goals, expectations. 00:20:37.680 --> 00:20:40.000 Getting it all out on the table. Yes. Getting 00:20:40.000 --> 00:20:42.900 everyone on the same page early minimizes conflict 00:20:42.900 --> 00:20:44.880 later. Makes the whole thing smoother. Makes 00:20:44.880 --> 00:20:46.700 sense. Can't solve a problem we won't discuss. 00:20:46.880 --> 00:20:49.980 Okay, step four. Intentionally develop your successors. 00:20:50.039 --> 00:20:51.819 This isn't just sink or swim. No, not at all. 00:20:51.839 --> 00:20:54.390 It has to be deliberate. systematic skill development, 00:20:54.529 --> 00:20:57.150 mentorship. That Compere article made another 00:20:57.150 --> 00:20:59.210 good point here. What's that? Lenders are increasingly 00:20:59.210 --> 00:21:02.710 asking about next -gen involvement, about the 00:21:02.710 --> 00:21:05.210 transition plan. They see a farm without a clear 00:21:05.210 --> 00:21:08.109 succession strategy as a higher long -term risk. 00:21:08.430 --> 00:21:11.369 So not having a plan, not developing successors, 00:21:11.369 --> 00:21:13.369 could actually hurt your borrowing ability now. 00:21:13.630 --> 00:21:16.109 It potentially could, yes. So whether it's formal 00:21:16.109 --> 00:21:18.950 ag education, structured on -farm training with 00:21:18.950 --> 00:21:21.609 more responsibility over time, external mentors. 00:21:23.259 --> 00:21:25.480 Successors need to actively build the skills, 00:21:25.619 --> 00:21:27.759 the knowledge, the leadership they'll need. Building 00:21:27.759 --> 00:21:30.680 capacity. Exactly. That Agraris Journal study 00:21:30.680 --> 00:21:34.000 backed this up too. Early, meaningful participation 00:21:34.000 --> 00:21:37.259 by successors is critical for long -term sustainability. 00:21:37.480 --> 00:21:39.779 You're investing in them, not just waiting for 00:21:39.779 --> 00:21:41.779 them to inherit. Right. A proactive investment. 00:21:42.119 --> 00:21:45.039 Okay. Fifth and final step. Get expert help to 00:21:45.039 --> 00:21:47.500 test and refine your plan. Don't go it alone. 00:21:47.759 --> 00:21:50.339 Absolutely non -negotiable. Succession planning 00:21:50.339 --> 00:21:53.279 hits so many complex areas. Legal, financial, 00:21:53.660 --> 00:21:56.259 tax, and maybe the trickiest, family dynamics. 00:21:56.519 --> 00:21:58.700 All intertwined. Deeply. As Compure advised, 00:21:58.980 --> 00:22:01.700 get guidance from pros, ag lawyers, tax advisors 00:22:01.700 --> 00:22:03.799 who get farm transitions, business consultants, 00:22:03.980 --> 00:22:05.980 your lenders. They all bring a piece. Because 00:22:05.980 --> 00:22:09.359 every farm is different. Totally unique. Assets, 00:22:09.359 --> 00:22:13.319 debts, family situation. A one -size -fits -all 00:22:13.319 --> 00:22:16.210 plan just won't work. Baker Tele Canada listed 00:22:16.210 --> 00:22:18.690 all the components. Family dynamics, training, 00:22:18.970 --> 00:22:21.049 financial transition, management transition, 00:22:21.349 --> 00:22:24.269 legal, taxes. It takes a team. It really does. 00:22:24.329 --> 00:22:27.089 A coordinated team to cover all the angles, make 00:22:27.089 --> 00:22:30.130 sure the plan is solid, legal, and actually doable. 00:22:30.410 --> 00:22:32.829 And we included a table, kind of a timeline. 00:22:33.150 --> 00:22:35.650 Yeah, I saw that. Immediate, short -term, long 00:22:35.650 --> 00:22:38.349 -term actions. Right. Just to show it's a process. 00:22:38.589 --> 00:22:41.769 Yes. A marathon, not a sprint. And you need experienced 00:22:41.769 --> 00:22:44.509 guides. Makes perfect sense. You wouldn't do 00:22:44.509 --> 00:22:47.589 surgery on your herd yourself. Why try to navigate 00:22:47.589 --> 00:22:50.930 the farm's future alone? Now, we've mostly talked 00:22:50.930 --> 00:22:52.829 parent to child, but you mentioned alternatives. 00:22:53.329 --> 00:22:54.630 Yeah, it's important to remember that's not the 00:22:54.630 --> 00:22:57.309 only path. Yeah. Always the best one. That Loveland 00:22:57.309 --> 00:22:59.130 Dairy Whip example. Where the kids didn't want 00:22:59.130 --> 00:23:01.349 it. Right. They ended up selling to an unrelated 00:23:01.349 --> 00:23:03.710 family who wanted to continue the business. The 00:23:03.710 --> 00:23:05.289 original owners hoped they'd build their own 00:23:05.289 --> 00:23:07.190 tradition there. So a different kind of legacy, 00:23:07.470 --> 00:23:10.799 but the business continues. Exactly. And other 00:23:10.799 --> 00:23:13.460 models are gaining traction, too. Worker cooperatives, 00:23:13.579 --> 00:23:15.920 employee ownership transitions. When there's 00:23:15.920 --> 00:23:18.039 no family successor. Right. Or if the family 00:23:18.039 --> 00:23:19.660 wants a different outcome. It keeps the farm 00:23:19.660 --> 00:23:22.339 going, keeps the employees employed. An Ontario 00:23:22.339 --> 00:23:26.119 Ministry of Ag report in 2023 stressed being 00:23:26.119 --> 00:23:29.279 flexible, considering a range of scenarios. Finding 00:23:29.279 --> 00:23:31.880 the right fit for that specific farm and family. 00:23:32.059 --> 00:23:34.519 Precisely. Finding a sustainable path forward, 00:23:34.599 --> 00:23:37.119 whatever it looks like. Okay. You also included 00:23:37.119 --> 00:23:39.539 a self -assessment tool. How does that work? 00:23:39.819 --> 00:23:41.960 Yeah, just a quick way for listeners to kind 00:23:41.960 --> 00:23:44.299 of gauge where they stand. High level, but useful. 00:23:44.539 --> 00:23:47.140 Five areas. Five key areas. Written planning, 00:23:47.359 --> 00:23:49.779 financial preparation, communication systems, 00:23:49.980 --> 00:23:52.220 talent development, and contingency planning. 00:23:52.400 --> 00:23:54.740 And you rate yourself one to five. Right. One 00:23:54.740 --> 00:23:57.019 means lots of work needed. Five means you're 00:23:57.019 --> 00:23:59.700 on solid ground. Add up the scores. If you're 00:23:59.700 --> 00:24:03.359 below 20 total. Red flag. Yeah, it suggests significant 00:24:03.359 --> 00:24:05.759 work is needed to improve your odds of a successful 00:24:05.759 --> 00:24:07.950 transition. We had a client once talking about 00:24:07.950 --> 00:24:09.809 the challenges. Their main goal, they said, was 00:24:09.809 --> 00:24:12.470 just not becoming terminal. They knew they were 00:24:12.470 --> 00:24:15.049 profitable now, but not structured to survive 00:24:15.049 --> 00:24:18.769 beyond them without a real plan. Wow. Not becoming 00:24:18.769 --> 00:24:21.789 terminal. That's blunt. But honest. And that 00:24:21.789 --> 00:24:24.210 self -awareness is often the crucial first step. 00:24:24.569 --> 00:24:27.049 Puts the stakes in perspective. So we've hit 00:24:27.049 --> 00:24:28.730 the challenges, the steps, the alternatives. 00:24:29.029 --> 00:24:31.670 But what are the real consequences of doing nothing, 00:24:31.809 --> 00:24:34.029 of inaction? Well, those grim stats we started 00:24:34.029 --> 00:24:36.589 with, two -thirds failing by Gen 2, over 80 % 00:24:36.589 --> 00:24:38.089 by Gen 3, that's just part of it. It's just the 00:24:38.089 --> 00:24:41.109 business side. Right. Compure reminded us, unforeseen 00:24:41.109 --> 00:24:44.170 stuff happens. Health scares, market crashes. 00:24:44.829 --> 00:24:48.230 A plan is a crucial safeguard. But beyond the 00:24:48.230 --> 00:24:50.369 money, beyond the farm may be dissolving. The 00:24:50.369 --> 00:24:53.119 human cost. the emotional psychological cost 00:24:53.119 --> 00:24:55.440 can be devastating. Family relationships already 00:24:55.440 --> 00:24:58.680 complex on a farm can be just destroyed. Bitter 00:24:58.680 --> 00:25:01.059 legal fights, no communication, the whole legacy 00:25:01.059 --> 00:25:04.440 built over generations evaporated, gone. Acrimony 00:25:04.440 --> 00:25:07.059 and regret instead of legacy. Exactly. Hopes 00:25:07.059 --> 00:25:09.240 and dreams just dissolved. It's incredibly sad 00:25:09.240 --> 00:25:12.359 when it happens. It is. A heavy thought, but 00:25:12.359 --> 00:25:16.079 vital. So as we wrap this deep dive, what's the 00:25:16.079 --> 00:25:18.920 fundamental question every dairy farm family 00:25:18.920 --> 00:25:22.059 needs to ask themselves? right now. The core 00:25:22.059 --> 00:25:25.460 question, the bottom line is this. Are you actively 00:25:25.460 --> 00:25:30.220 building a lasting legacy? Or are you maybe inadvertently 00:25:30.220 --> 00:25:32.740 creating a future liability for your loved ones? 00:25:32.960 --> 00:25:35.880 Legacy or liability? That's it. Census data shows 00:25:35.880 --> 00:25:37.900 a massive amount of farmland changing hands in 00:25:37.900 --> 00:25:40.480 the next couple of decades. Huge transfer. Risk 00:25:40.480 --> 00:25:43.980 and opportunity. Both. Big risk if you're unprepared. 00:25:44.099 --> 00:25:47.839 Huge opportunity if you plan proactively. Penn 00:25:47.839 --> 00:25:50.420 State Extension reframed it well. How so? They 00:25:50.420 --> 00:25:52.299 said succession planning is really about answering 00:25:52.299 --> 00:25:54.319 the question, what happens if the owner is suddenly 00:25:54.319 --> 00:25:58.640 unable to run the farm? Illness, accident. Modern 00:25:58.640 --> 00:26:00.839 farming is too complex to figure that out after 00:26:00.839 --> 00:26:02.539 a crisis hits. You can't wait for the emergency. 00:26:02.920 --> 00:26:05.160 No. And you hear from farmers who have successfully 00:26:05.160 --> 00:26:07.240 passed it on. They often say it's the hardest 00:26:07.240 --> 00:26:09.319 thing they ever did. But also their proudest 00:26:09.319 --> 00:26:11.460 achievement and the common thread. None of them 00:26:11.460 --> 00:26:12.960 left it to chance. They were all intentional. 00:26:12.960 --> 00:26:15.420 They planned. So the takeaway is crystal clear. 00:26:15.869 --> 00:26:18.349 Can't put this off. Not at all. The clock is 00:26:18.349 --> 00:26:20.589 absolutely ticking on that family dairy time 00:26:20.589 --> 00:26:23.410 bomb. The choice to diffuse it through planning, 00:26:23.490 --> 00:26:25.849 through communication, or risk letting it detonate. 00:26:26.089 --> 00:26:28.710 That choice rests entirely with you and your 00:26:28.710 --> 00:26:31.670 family. Okay. And just to quickly recap the absolute 00:26:31.670 --> 00:26:33.650 core messages from our discussion today. Right. 00:26:33.690 --> 00:26:37.769 First, remember that shocking stat, 83 .5 % don't 00:26:37.769 --> 00:26:40.250 make it to Gen 3. often due to poor planning, 00:26:40.390 --> 00:26:43.650 family conflict, lack of financial scaling. Okay, 00:26:43.730 --> 00:26:46.190 second. True unity isn't about zero conflict. 00:26:46.349 --> 00:26:48.509 It's about having structures to handle disagreements, 00:26:48.569 --> 00:26:51.230 formal agreements, maybe mediation to stay aligned 00:26:51.230 --> 00:26:53.809 on goals. Got it, third. Developing next -gen 00:26:53.809 --> 00:26:56.769 talent and drive needs deliberate effort. Skills, 00:26:56.990 --> 00:26:59.589 experience, real responsibility. It's not just 00:26:59.589 --> 00:27:02.170 inherited. Sustainable asset growth is essential 00:27:02.170 --> 00:27:04.630 to support multiple households. This often means 00:27:04.630 --> 00:27:06.609 creative financial structures, like separating 00:27:06.609 --> 00:27:09.470 assets from operations. And finally? Dairy has 00:27:09.470 --> 00:27:13.769 unique challenges. 247. High tech costs. Succession 00:27:13.769 --> 00:27:15.650 plans need to be tailored to these realities, 00:27:15.809 --> 00:27:18.650 not generic advice. And just to boil it down 00:27:18.650 --> 00:27:20.829 even further, the executive summary? Basically. 00:27:21.259 --> 00:27:24.140 Dairy faces a huge succession challenge, low 00:27:24.140 --> 00:27:27.220 success rates. Despite the complexity and cost 00:27:27.220 --> 00:27:30.599 of modern dairy, few have solid plans. Success 00:27:30.599 --> 00:27:33.839 hinges on unity, via structure, developing talent, 00:27:34.079 --> 00:27:36.920 and ensuring financial scalability. Dairy -specific 00:27:36.920 --> 00:27:40.240 demands amplify these needs. Proactive planning, 00:27:40.420 --> 00:27:42.740 family meetings, financial restructuring, skill 00:27:42.740 --> 00:27:44.940 development is vital to avoid farm collapse. 00:27:45.259 --> 00:27:48.019 With massive land transfer coming, the urgency 00:27:48.019 --> 00:27:50.920 is immense. Couldn't say it better. So there 00:27:50.920 --> 00:27:53.880 you have it. Succession planning isn't some optional 00:27:53.880 --> 00:27:56.240 luxury for dairy farm families. It's an absolute 00:27:56.240 --> 00:27:58.440 necessity if you want that legacy to continue. 00:27:58.619 --> 00:28:00.859 A must do. And with that, we want to leave you 00:28:00.859 --> 00:28:03.500 with one final thought, a call to action, really. 00:28:04.000 --> 00:28:06.839 What is one specific thing, however small it 00:28:06.839 --> 00:28:08.920 seems, that you can commit to doing today about 00:28:08.920 --> 00:28:11.380 your farm succession plan? Just one step. Maybe 00:28:11.380 --> 00:28:13.359 it's finally scheduling that family meeting you've 00:28:13.359 --> 00:28:15.240 been putting off. Maybe it's digging out your 00:28:15.240 --> 00:28:17.460 current will or estate plan just to look at it. 00:28:17.500 --> 00:28:20.039 Maybe it's doing 15 minutes of online research 00:28:20.039 --> 00:28:21.839 about different business structures. Anything 00:28:21.839 --> 00:28:24.680 to get the ball rolling. Exactly. Taking that 00:28:24.680 --> 00:28:27.359 first step. even if it feels overwhelming, is 00:28:27.359 --> 00:28:30.180 often the most critical move. We really hope 00:28:30.180 --> 00:28:32.480 this deep dive has given you some valuable insights 00:28:32.480 --> 00:28:34.940 and maybe the push you needed to start diffusing 00:28:34.940 --> 00:28:37.859 your family dairy time bomb. Thanks for tuning 00:28:37.859 --> 00:28:40.400 in to The Deep Dive. Until next time. That wraps 00:28:40.400 --> 00:28:43.019 our deep dive into the family dairy time bomb. 00:28:43.920 --> 00:28:47.039 Remember, building a lasting dairy legacy isn't 00:28:47.039 --> 00:28:49.980 about chance. It's about intention. The clock 00:28:49.980 --> 00:28:52.440 is ticking on your family farm's future and the 00:28:52.440 --> 00:28:55.309 choice to diffuse that bomb. or let it detonate, 00:28:55.349 --> 00:28:58.609 rests entirely with you. If this episode hit 00:28:58.609 --> 00:29:02.109 close to home, take one action this week. Schedule 00:29:02.109 --> 00:29:03.970 that uncomfortable family meeting you've been 00:29:03.970 --> 00:29:07.130 avoiding. Your dairy's future depends on conversations 00:29:07.130 --> 00:29:09.990 happening at your kitchen table, not just decisions 00:29:09.990 --> 00:29:13.029 made in the barn. For more industry -challenging 00:29:13.029 --> 00:29:16.250 insights and practical strategies, visit us at 00:29:16.250 --> 00:29:18.609 thebullvine .com, where we're constantly adding 00:29:18.609 --> 00:29:21.589 fresh, provocative content to help your operation 00:29:21.589 --> 00:29:25.710 thrive. Subscribe to our podcast, follow us on 00:29:25.710 --> 00:29:29.390 social media, and join the conversation. Thank 00:29:29.390 --> 00:29:31.710 you for joining us for this episode of the Bullvine 00:29:31.710 --> 00:29:34.150 Podcast, where we're not just passionate about 00:29:34.150 --> 00:29:37.029 dairy farming, we're obsessed with helping you 00:29:37.029 --> 00:29:40.349 build a legacy that lasts. Until next time, keep 00:29:40.349 --> 00:29:42.950 challenging conventional wisdom and building 00:29:42.950 --> 00:29:44.470 something worth passing on.