Grainswest - Spring 2024

Spring 2024 Grains West 30 “Sometimes you have to plant seeds,” said Oszli. “There has to be some communication and some type of a plan to facilitate the change. Oftentimes, it’s an education in financial literacy that needs to happen between father and child. Quite often dad has made the decisions, it’s all in his head, but to put a succession plan in place, it really needs to be in writing so both parties can understand where decisions are coming from.” Having seen many clients simply start too late, he urges farm families that haven’t begun the process to begin today, even if it’s a quick, throw- something-at-the-wall conversation. “The neat part about the plan is there’s always different points we can make changes to, and if the plan needs to be looked at periodically, we can make changes as circumstances dictate.” For the moment, the Duncans need no adjustment to their plan. The girls share collective gratitude for their parents’ well-considered efforts, which negated any heated voices, gnashed teeth or thrown chairs. “The farm is everything in my world, so to split it up would be tough,” admitted Duncan. “To have my kids fighting would be horrible, so I think they looked at all that and just went, ‘Whatever mom and dad want, we’re good with.’” The sons-in-law even signed post- nuptial agreements that stated the farm itself could never be part of a settlement in the event of a divorce. Both men signed it with zero hesitation. Duncan knows families that have been destroyed by greed when a child believed they were entitled to more than was offered. However, to ensure a farm continues to operate typically requires a disproportionate split of assets. “Let’s face it, there’s no question it is pretty lopsided,” he said of the farm transition. “It’s lopsided for the future of our farm to continue. You absolutely cannot look at numbers when you’re doing something like this. The old adage, equal is not fair, and fair is not equal; that’s a huge statement that really applies here.” Nonetheless, the process was amicable and straightforward, said daughter Shelby. All four daughters are great friends and recognized the uneven asset distribution necessary to maintain the existence and operation of the family farm. “Everyone was very friendly and just felt comfortable voicing any concerns if they felt something was unfair. But the way my parents did it, everybody kind of agreed it seems quite fair,” she said. Now that the succession plan is in motion, it’s an exciting time for her family and sister Darci’s. With a clear path ahead, both families can envision long-term plans for the farm and its continued evolution. Each sister will receive a set amount of land. The Lethbridges live on the home quarter with their parents and will receive outbuildings and houses but less land. The Coles have more land and live on a nearby acreage. The equipment is the only part of the farm that is owned jointly by the two sisters’ families as a corporation. THE REAL THING A self-described “hardcore farmer,” for many years, Duncan didn’t let on as to when he would start the succession planning process. His children were somewhat concerned it wouldn’t happen. “We’ve always felt like all these talks are great but is it actually going to happen?” said Shelby. “He always said, ‘In the next five years, in the next five years.’ But then years would go by, and it would still be, ‘in the next five years.’ It wasn’t until last year that things started to actually happen.” The completed plan will see Duncan fully succeeded by the time he turns 70. As of today, each family has bought in at three per cent. Not monumental, but enough to make it feel real. “As soon as mom and dad put a plan in place as to how we’re going to move forward with this, I felt like that was the perfect solution. That’s what we needed to get the ball rolling, even if it’s slowly,” said Shelby. “It’s moving in the right direction. We’re learning a ton from working with my parents instead of just taking over all at once. I feel really good about the way it’s moving now.” With the heavy lifting of the succession plan behind them, the real fun has begun for both generations. Shelby admits there were many career paths she and her husband could have taken, but the certainty they will be farmers is exciting and has practical implications. Ty and brother-in-law Matt can glean as much as possible from Duncan while he’s close at hand to mentor them. As well, Shelby loves the assurance her children will grow up to enjoy the same country lifestyle she did. “The biggest thing is openness and communication by all parties,” said Duncan. “We put out there what we wanted, and they put out there what they thought of what we wanted, and in the end, it was just a smooth, very good process. “When I’m on my deathbed and see my kids’ and grandkids’ names on those titles and that the farm is operating, I’m great, I’m done, I’m happy.” Even though it was initially said of planting a tree, Oszli reminds farmers the best time to start this was yesterday, but the second-best time is today. “ The farm is everything in my world, so to split it up would be tough.” – Dennis Duncan FEATURE