New England Farm Transfer Workshops

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New England Farm Transfer Workshops

• Michael Sciabarrasi
• Extension Professor, Agricultural Business
  Management
• University of New Hampshire
• Robert Parsons
• Extension Professor, Farm Management
• University of Vermont

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Farm Transfer Workshops

• Review
• Situation
• Program Description
• Evaluations
• Time Frame
• 2002 through 2007
• Prior efforts

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Situation

• Succession critical to future of farming
• Aging farm population retirement
• High start-up costs tight profit margins
• Development pressures
• Significant changes in estate tax law
• Limited expertise across New England

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Program Description

• Goals
• Sustain a viable farm business which can support
  the incoming generation while providing an
  adequate retirement for the exiting generation
• Leverage available resources across New England
  and the Northeast

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Program Description

• Audiences
• Older farmers interested in succession planning
• Younger farmers contemplating farm ownership
• Industry professionals looking for a better
  understanding of succession issues

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Program Description

• Delivery
• Introductory workshop on farm succession
• A second workshop targeting specific issues
• One-on-one visits
• Support
• Northeast Center for Risk Management Education
• New England Extension, Land Link Organizations,
• Others

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Program Description

• Transferring the Farm I Workshop
• Agenda
• Getting the Farm Transfer Process Started
• Transferring the Farm - Tools and Techniques
• Farm Transfers and Estate Planning
• New Ideas and Creative Solutions
• Firsthand Experience
• New England Wide
• 5 sites 03, 4 sites annually 04 06, 2 sites
  07

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Program Description

• Transferring the Farm II Workshop
• Agenda
• Retirement Income Needs
• Medicare/Health Care Planning
• Farm Transition Process and Business Entities
• Ingredients of a Business Agreement
• Case Study
• New England Wide
• (2 sites 04) 3 sites 05, 2 sites annually 06
  07

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Evaluations

• Workshops 03-07
• Participant profile
• Workshop satisfaction
• Instructor effectiveness
• Knowledge level
• Steps taken
• Open-ended questions
• Need help
• Likely future advisors

Follow-up 04 Participant profile Participant
satisfaction Desired follow-up Steps
taken Applied workshop concepts to farm
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Participation

• TTF I
• 798 participants
• 458 evaluations
• 57

• TTF II
• 193 participants
• 141 evaluations
• 73

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Participation

• TTF I

• TTF II

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TTF I Profile
(N458)
Farm owners 72
Own farmland 74
13
TTF II Profile
(N141)
Farm owners 80
Own farmland 77
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Workshop Satisfaction

• TTF II

• TTF I

1 2 3 4 5 Mean Score
0 1 5 31 63 4.6
0 0 2 29 69 4.7
1 2 3 4 5 Mean Score
0 1 1 27 71 4.7
0 0 2 24 74 4.7
Percent
Percent
Overall
Organization
Scale of 1 (dissatisfied) to 5 (satisfied)
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Instructor Effectiveness

• TTF I

1 2 3 4 5 Mean Score
Getting started 1 2 9 44 44 4.3
Tools techniques 0 2 15 49 33 4.1
Farm transfer 1 2 12 41 44 4.3
New ideas 1 3 17 47 33 4.1
Farmer panel 1 3 10 34 52 4.3
Percent
Scale of 1 (not effective) to 5 (very effective)
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Instructor Effectiveness

• TTF II

1 2 3 4 5 Mean Score
Retirement needs 1 0 9 40 50 4.4
Health care 1 1 9 38 51 4.4
Business structure 0 0 12 35 53 4.4
Business agreements 0 2 10 39 49 4.4
Farm case study 0 2 15 32 51 4.3
Percent
Scale of 1 (not effective) to 5 (very effective)
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Knowledge Level

• TTF I

Prior Prior Post Post
Mean SD Mean SD
Assessment of goals 2.96 0.99 4.12 0.67
Retirement planning 2.80 1.03 3.92 0.80
Business transition 2.58 1.01 3.95 0.77
Estate planning 2.68 1.04 4.05 0.79
Scale of 1 (low) to 5 (high)
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Knowledge Level

• TTF II

Prior Prior Post Post
Mean SD Mean SD
Retirement income needs 3.03 0.97 4.15 0.78
Health care planning 2.78 1.05 4.07 0.72
Farm business structures 2.70 0.85 4.14 0.64
Business agreement provisions 2.55 0.95 4.14 0.70
Scale of 1 (low) to 5 (high)
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Steps Taken (Last 5 Years)
TTF I TTF II
Talked to family about transfer 57 52
Contacted/met ag. professional 32 40
Contacted/met service provider 37 40
Attended other transfer workshop 32 52
Wrote/updated a will 28 16
Changed business structure 13 14
Developed a business plan 15 19
Other 4 9
No steps taken 11 11
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Need Help
TTF I
Specific legal advice 50
Finding needed advisors 43
Specific financial advice 41
Keeping on track to get it done 40
Putting it all together 39
Working through family dynamics 39
Affording expenses to complete transfer plan 35
Collected in 06 and 07 only (N 102)
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Likely Future Advisors
TTF I
Attorney 62
Tax consultant 50
Estate planner 49
Transfer planning facilitator 36
Dev. rights/cons. easement specialist 32
Financial advisor 31
Farm business management specialist 29
Land use planner 24
Mediator or counselor 19
Collected in 06 and 07 only (N 102)
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Open Ended Questions
TTF I Please tell us the most valuable thing you
learned How can we improve this workshop? What
are the major obstacles in transferring the farm
to the next generation? What would be the most
helpful assistance for you to start or complete
your farm transfer plan? Suggestions for future
topics related to farm transfers
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Open Ended Questions
TTF II How can we improve this workshop? What
do you plan to do as a result of
attending? Additional comments
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Follow-up EvaluationSatisfaction
(N 32)
Satisfaction with Mean Score
Workshop format 4.7
Presentations 4.5
Educational materials 4.6
Location 4.6
Scale of 1 (dissatisfied) to 5 (satisfied)
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Follow-up EvaluationAssistance for Fee
Type Yes No N
Advanced workshop 46 54 26
Small group meeting with speaker 32 68 22
Farmer-to-farmer group discussions 37 63 19
One-on-one visit 50 50 24
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Follow-up EvaluationSteps Taken (since prior
spring)
Talked to family about transfer 62
Contacted/met ag. professional 17
Contacted/met service provider 21
Attended other transfer workshop 17
Wrote/updated a will 24
Changed business structure 7
Developed a business plan 4
Other 4
No steps taken 17
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Offshoots

• Individual Assistance
• Beginning in 2005, follow-up farm visits
  supported with grant funds to support
  professional services received
• The Farm Transfer Network of New England
• Network of professionals and organizations
  offering expertise in farm transfer and
  succession

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New England Farm Transfer Workshops
Thank You