It’s the talk every ranch family needs to have. The issue of succession planning in agricultural operations is one many try to avoid because of potential conflict and stress.
This episode of “The Future of Beef Show”, features Alan Hojer, a longtime ranch succession expert from the Keep Farmers Farming program. Hojer has helped hundreds of families tackle one of the toughest transitions in agriculture — passing the ranch to the next generation. He emphasizes the most important goal for farm and ranch families is finding peace during generational transitions.
Hojer explains agriculture is experiencing an unprecedented transition period. Historically, farm succession was simple — typically the oldest child would inherit the homeplace and parents would buy additional land for other children. However, rising land values and economic challenges have made this approach increasingly difficult.
In the podcast, he shares insights on why so many ranchers avoid planning, what gets in the way of productive conversations and how to turn tension into trust at the kitchen table. Here are a few important principles Hojer highlights:
- Succession is not about equal distribution, but about finding peace and supporting each family member’s individual path
- The older generation must be willing to share information and gradually transfer decision-making responsibilities
- Younger generations should seek experience both within and outside the family operation
- Gender should not be a barrier to succession
- A third-party facilitator can be crucial in navigating complex family dynamics
Hojer says the first step is simply getting family members to sit down and talk. He encourages producers to begin difficult conversations casually and informally.
The key to successful succession, according to Hojer, is developing a shared vision. He stresses that vision is more important than assets, and families must work together to create a unified direction for their operation. This vision serves as a foundation for strategic planning and helps align family members’ expectations and goals.
More Than One Discussion
A critical aspect of successful succession is communication and information sharing. Hojer recommends starting these conversations early — ideally when the next generation is in their late 30s or early 40s.
He advocates for monthly family meetings that include financial reviews, allowing younger generations to understand the business’s operations and become active participants.
Succession planning is an ongoing process, not a one-time event. It requires patience, open communication and a commitment to the family’s collective vision.
Hojer notes that succession doesn’t always mean keeping the entire operation together. Sometimes, a successful transition means helping family members find their own paths, which might involve dividing the operation or transitioning to an outside party.
The Keep Farmers Farming program is a division of the South Dakota Ag Foundation that focuses on helping agricultural families navigate succession planning and generational transitions. The program’s goal is to provide families with the tools and support needed to navigate succession successfully, ensuring the continued vitality of agricultural operations.
“You always have to remember it’s nobody’s to take. It’s the parents to give,” Hojer summarizes. “And the greatest gift a parent can give is not the asset itself. It’s actually the information at a time when time is still on the side of the younger generation.”
Your Next Read: The Future of Beef Show Now Streaming on Farm Journal TV
