Passing Down More Than Land: Breaking Generational Cycles in Agriculture
"What are we really passing down to the next generation?" It's a question every farmer and rancher has pondered, likely more than once. But the answer goes far beyond land and debt.
"If it's just land and debt, we've completely missed the mark," Haralson declares.
Instead, host Jonathon Haralson argues, what often gets passed down are cycles: cycles of debt, cycles of stress, cycles of silence, and market cycles. Too often, the struggles of one generation become the burden of the next.
"So not only do we pass down the farm, but we also send its struggles to the next generation. Is that what you want your legacy to be?" Haralson asks.
Haralson dives into the recurring patterns that define many family operations. Financial management, he notes, varies widely from generation to generation. Some thrive, others falter. Relationships, too, often bear the scars of past conflicts and unresolved issues.
"There's something deep that's tearing them apart," Haralson says, describing the bitterness he's observed in some families. He attributes much of this to "emotional silence," a reluctance to address difficult feelings and experiences.
This silence, he argues, can lead to profound consequences. "It's caused them not to show up for their kids. It's caused them not to show up for their wife." The result is a destructive loop: burying oneself in work to avoid facing underlying trauma.
Business structures, too, can perpetuate problems. A handshake deal that worked for granddad might leave the next generation vulnerable, especially when "big money" is involved. Without a proper succession plan, the farm or ranch is at risk.
"We continue to do this generation after generation after generation," Haralson says, until the son or daughter is "working for nothing," toiling for a pittance with only a "hope and a prayer" of someday taking over.
So, how do you break free from these destructive patterns? How do you lighten the "heaviness" that so many carry?
His answer? Therapy.
"Yeah, I said it. There's therapy," Haralson emphasizes. Despite resistance, he's seen firsthand the transformative power of professional help. "I've seen grown men go to therapy and come out a totally different person." The key, he says, is to "take care of business now and stop waiting."
Showing up for your kids is also critical. "You have a finite amount of time to be an impression on your children," Haralson says. Be present, be a leader, and be someone they can count on.
Haralson also stresses the importance of sound financial planning. Get your "house in order," he urges. Develop a proper entity structure, understand the tax implications, and create a written estate plan.
He paints a stark scenario: a farmer dies unexpectedly, leaving a stay-at-home wife with no W-2 income, no life insurance, and a farm tied up in debt. "That's not caring for your family. That's leaving them in crisis."
Life insurance, Haralson argues, is "non-negotiable." "You are a valuable commodity," he says. "Let the farm pay for it." He also emphasizes the need for operating agreements and succession plans that protect everyone involved.
"If you truly love your family, take care of the paperwork, not just what's going on in the fields or the pasture," Haralson says.
The Three Hats
To thrive in today's agricultural landscape, Haralson says, farmers and ranchers must wear three hats: CEO, CFO, and foreman.
CEO: The visionary leader who provides direction and makes key decisions.
CFO: The numbers person who manages risk, handles insurance, and plans for the future.
Foreman: The hands-on worker who handles the day-to-day grind of labor and production.
While most excel as foremen, Haralson says, they often struggle with the CEO and CFO roles. He cautions against waiting for a bailout. "Nobody's going to ride in here with a bailout check for you," he says.
"I don't want you to just pass down land," Haralson concludes. "I want you to pass down stability." This means taking care of your family financially and emotionally, stepping into your role as a leader, and accepting that "no one's going to come save you."
He offers three action steps:
Call a professional about life insurance.
Book time with an attorney or advisor to review your business structure.
Have an honest conversation with your spouse and kids about the future of the farm or ranch.
"Land is valuable," Haralson says, "but the greatest legacy is a healthy family and a ranch or a farm that is set up to last."