A Family Legacy: Succession Planning for Ranch and Farm Owners A Video Tutorial and Facilitated Workshop Bart Eleveld Extension Economist Oregon State University

RMA Commodity Partnership Agreement ’07-’08 Oregon Cattleman’s Association was commodity partner Livestock emphasis, but farmers also attended Phase I, Workshop series: –2, 4 ½ hour workshops in January and April –5 locations: Eugene, Prineville, Burns, Baker City & Klamath Falls Phase II, DVD tutorial/facilitated workshop

Workshop 1 Focused on the need for succession planning Challenges of family communication Introduction to the case study family and valuing their legacy –Balance sheet Some simple management strategies Building a “team” of experts

Workshop 2 Reviewing the case study family –Prospects for future multigenerational success: income statement and cash flow Expert advisors talk about succession planning tools –Charitable remainder trusts –Accounting and Appraisal tools for valuation discounts –Legal tools: Wills, trusts and buy-sell agreements –Charitable contribution tools: remainder trusts –Conservation easements and trusts

DVD Tutorial/facilitated Workshop Dual purpose –Facilitated workshop series utilizing local succession planning experts. DVD takes care of formal presentations Local advisors answer questions and lead discussion Let participants know there are local resources to turn to. –Self study tutorial Producers can do self-paced learning Web site lists additional background material including more detailed statewide workshop presentations, programs available in other states.

Facilitated Workshop Ideally would allow local facilitator to direct a two (or more) session workshop series –First session stresses the need, importance and challenges of succession planning Uses dramatized scenario of case study family to personalize the situation Has audience participation/involvement exercises that can stimulate discussion and can be done as “homework” assignments for second session

Goals/Objectives and Challenges

Heirloom/Lifestyle Scales

Balance Sheet

Succession “Team” Structure

–Second session turns to “tools of the trade” that producers might use in their succession plan Uses presentation by “experts” to give an overview of some of the methods and instruments. Relate to the case study where possible to have a unifying thread. –Attorney –CPA –Investment and Insurance Advisor(s) –Business management consultant(s) –Communication mediator/facilitator –Conservation easement representatives –“Head coach” Need to stress the “teamwork” aspect