At Ascent Financial, we understand the necessity for a new generation of farmers to supply our food, and we appreciate the men and women who continue to answer the call to carry on the farming tradition.
Yet, research shows that only 30% of family-owned businesses survive into the second generation. That number plummets to 12% in the third generation and drops again to 3% in the fourth generation. That’s why we’re proud to provide Agricultural Consulting & Planning Services.
Ascent conducts a holistic approach to the transition plan, formalizing the business and improving the probability of a successful and sustainable transition, to pass management and/or ownership on to the next generation. We follow a balanced approach and steps needed to bring in the next generation and have them staged for success.
The Transition Plan is based on the economics of the business and the individuals involved; testing concepts through economic models. Ascent also helps with communication and meeting protocol, successor development and professional development plans and governance. Tax and Entity strategies, financial structure and risk management are agreed upon and implemented. Ascent also provides on-going monitoring with budget to actual financial modeling, recording equity transfers and annual certificates and estate plan check ins.
Smooth Transitions with Ascent Financial
Family farms are as unique as the farmers who work them, however the struggle to transition to a new era of ownership is remarkably common. Nearly 60% of these transitions turn sour due to communication problems. In a quarter of cases, the next generation is simply unprepared for the challenges farming brings with it. The remaining 15% are victims of poor tax or financial planning, bad legal advice, and other issues.
Transferring a lifetime of hard work, including investments in assets such as buildings and equipment, hard fought improvements in soil health and water quality, and relationships with bankers, suppliers and neighbors can be a complex and nuanced endeavor. Statistics show there are currently under two million farmers actively farming across the nation. The number of professionals–like Ascent Financial–with valuable experience in ag consulting and succession planning are few, yet companies like ours are invaluable in assisting in the smooth transition of farm ownership between generations
Don’t let a lifetime of work become another transitional statistic. Trust the challenges associated with succession planning to the expert team at Ascent Financial and watch a lifetime of hard work live on. Contact us today for more information.