Editor’s note: This is the final column in a three-part series on family business dynamics.
Family farms often begin with the relentless determination and unwavering spirit of their founders.
These pioneers weathered harsh conditions to clear the land and establish their homesteads. The work was grueling and the comforts were few, but the farm prospered as the family worked together. However, over time, certain pitfalls of complacency emerged.
To sustain the family farm, the senior generation must answer two questions:
- Is the next generation committed to doing the hard things required of owners?
- Is the farm creating an appealing and engaging work environment for the next generation?
As for the first question, the early generations physically worked hard and sacrificed much with a singular focus on work ethic. This work grind sometimes took a toll, so it’s only natural that later generations might not feel the same push. But easing up too much on work ethic and drive can harm the farm business and the farm family.
Sustainable family farms can’t thrive with low-drive owners, or those who don’t add major value to the business. The most enduring farms expect each generation to prove themselves with drive and commitment before becoming owners. Each new wave must show they want to be there and are prepared to tackle the hard tasks required of an owner.
As for the second question, the senior generation must create appealing and engaging work environments for young people: a farm with room to grow, enough money to start a family and a spot where they add value to the business.
Some believe creating such a work environment should be placed on the junior generation. I hear the phrase, “They need to step up.”
Step up to what? Step up where? These comments often create more confusion than a solution. To create a strong team, take these actions:
Evaluate talent
Do all employees have the same capabilities? Do they have the same desire to learn and increase skills? Can they all lead or manage?
Of course not. Some employees have something extra that makes them suitable managers and leaders. Others don’t. This does not mean individuals who can’t lead aren’t valuable. They are valuable, just probably not in a leadership role.
Find the right niche
If we don’t think every employee has what it takes to lead, why do we believe every next-generation family member is a leader?
Some in the next generation may not have what it takes to lead the farm. That’s OK as long as they are positioned where their talents can shine. Others with leadership abilities can become the leaders, whether family or someone else.
Expand skill sets
Let’s face it, some skills that were important just a decade ago are no longer relevant. Farms that remain sustainable often promote building new skills rather than focusing on ones used in the past. These farms encourage continuous improvement across generations.
A sustainable farm requires more than drive and work ethic. It needs smart, talented individuals who are challenged by the farm and themselves. Too often, our talented next generation leaves due to a lack of challenges or opportunities for personal growth. After all, many ag machinery dealerships, and chemical and pharmaceutical companies are eager to hire the best and brightest from family farms.
Investing in the development of talent and drive in the next generation ensures the family farm and its legacy continue to flourish. That’s how you create a sustainable family farm.