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Handing Down the Family Farm |
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2007-04 - by Susan McIver -
Bruce and Kathy Harker, owners of Harker's Fruit Ranch on Highway 3 in Cawston, are dealing with a situation commonly faced by farmers, the best way to transfer the farm from one generation to the next. "I'm the fifth generation in this family to farm this land and I want the transfer to the sixth to go well," Bruce said.
The Harker business involves 20-acres used for fruit and ground crop production, a retail store and a wholesale section including a packinghouse. Bruce and Kathy each work full time in the business. That means long hours of planning crops, managing personnel, dealing with brokers, retail selling, keeping books, all the myriad of tasks necessary to ensure a successful operation.
"In 1974, a year or so after our marriage, my folks started gradually turning the business over to us," Bruce said. "And to this day I still rely on my father for many things. Ken and Marjorie Harker, both in their 80s, continue to live on the home property and help where needed. "I was the only one of five kids who was interested in the place," said Bruce, a born farmer.
In contrast, three of Bruce and Kathy's four children would like to have careers in the family business. The younger Harkers, perhaps influenced by present high land values, see opportunities in farming that may not have been present or went unrecognized in the past. Bruce and Kathy's switch to organic production in the 1980s years ago may also be a factor in their children's desire to remain on the farm. A significantly higher percentage of the children of organic farmers want to continue in the family business than those raised on conventional farms.
Troy, age 23 and his wife, Sara, and Tyla, 24, are currently working in the packing house. Sara and Troy, who been working as a heavy equipment operator the Alberta oil fields, were happy to trade sky-high wages for what they consider to be a much better lifestyle. After a few years working in agriculture in Nova Scotia, Tyla decided there was no place like home.
Jason, 28, who has a background in finance and auto work, will be returning to the farm in a few months with his fiancée. The youngest, Alysha, having recently graduated from the American Music and Dramatic Academy is pursuing a career in Hollywood.
Bruce recently attended a workshop on succession planning at a recent national agricultural conference in Kelowna. How to distribute family assets fairly among all children while retaining viability of the farm and providing for a guaranteed retirement income for the parents were some of the topics covered.
He and Kathy are also working with a Penticton-based financial consultant, Wally Gaal, to find the best path for their family through the complex web of financial, tax and legal issues.
"I tell the kids that Mom and I are going to maintain control while they learn the ropes," said Bruce. "Mistakes could cost you the farm. We made some that almost did." Making a detailed personal budget is among the first things Bruce and Kathy are asking their children to do. Bruce and Kathy are also faced with the challenge of expanding their operation to accommodate the financial needs of their children's families.
Quick Facts
. More than 120,000 Canadian farmers are expected to turn 65 by 2010
. $50 billion in farm assets will be transferred
. Less than 5 percent of agri-business owners have a written succession plan
. Key considerations involve family, financial, tax and legal issues
Source: Canadian Federation of Independent Business |
