business transition planning: receiving generation
TRANSCRIPT
Business Transition Planning:
Receiving Generation
2010 Young Farmer &
Rancher
Excellence in Agriculture
Award
A Brief HistoryThat was then… Original homestead: 1814 Vale Wood Farms: 1933
This is now… 5th and 6th generation 35 full-time, 15 part-time employees
Dairy Processing Plant
Dairy Farm
Route Sales Direct Marketing
From Moo to You!
Dairy Farm
Our commitment to quality dairy products begins with our commitment to a healthy, happy herd of dairy cows
Farm 500 acres Milk 200 cows, 2x 85lbs milk, 110 SCC FARM participant Level 6 Johne’s-free
Dairy Processing PlantProcess a full line of dairy products
Milk from ours and 3 other local farmsManage supply and demandGMPs, HACCP plan, FSMAInspected by PDA, DEP, FDA
Route SalesWholesale accountsHome delivery accounts“The customer is always right!”Pricing, administration, collections
Direct Marketing
Farm events and Dairy Store salesOn-farm Dairy StoreEducational farm tours for school groupsFarm-to-fork dinnerPumpkin Patch, hayride toursSocial media outreach – “like” us!
The Power of Social Media
• Generation One• 1933: Sole Proprietorship
• Generation Two• Partnership
• Generation Three• S-Corp
• Generation Four
Business Structure
Transition PlanningFalse starts
2005: Consultant 12007: Consultant 22009: Consultant 3
Current effort2012: Mike Hosterman, Ag Choice2015: Holding company with by-laws established
with our attorney, accountant. Awaiting business plan. Hint. Hint.
Transition Planning: ReceivingOur Challenges:
Dynamic business and dynamic family: Generation Three: 8 people ages 68-56Generation Four: 17 people ages 41-13Generation Five: 19 people ages 17-6mo
Need a dynamic plan – simple yet adaptableMoving forward, there is no 3 vs 4 – just US
Transition Planning: ReceivingMy Challenges: Giver generation
Is very maleSpecial listening skills requiredLots of ratchet help…but not much planning
assistanceMay retire but aren’t going anywhereThink budget is the “b” wordHave high expectations I hope I can deliver
Transition Planning: ReceivingMy Challenges: Receiving generation
Is very maleProduction-oriented
Have ideas…LOTS of ideas…Varying work experience and education
Part-time participation and ownership optionsHave high expectations I hope I can deliver
