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Farm Succession Planning Intake

Creating a strategy for transitioning your family farm successfully from one generation to the next.

Part 1 of 9: Family Unit 11% Complete

Family Unit Identity

The goal of this succession plan is creating a strategy for transitioning the family farm successfully from one generation to the next.

Parents

Mother

Father

Children / Siblings

Succession Goals, Concerns & Contingencies

Best Succession Outcome Goals

What are the top 5 outcomes you want from this succession plan?

Succession Concerns

What are your top concerns about the succession process?

Succession Contingency Plans

What backup plans should be in place if the primary plan doesn't work out?

Needs & Wants

Understanding each family member's needs (must-haves) and wants (nice-to-haves) helps create a succession plan that works for everyone.

Part #1: Farm Enterprise Data

What is the estimated value of your farm? Provide best estimates based on recent appraisals and/or market information.

Farm Assets

$
$
$
$
$
$
$
$
$
$

Farm Debts

$
$
$
$
$
$
$
$

Part #2: Asset Details

Provide detailed information about your farm assets.

Land Details

Add details for each parcel of land owned

Buildings & Residence

Equipment & Tool Details

List major equipment items.

Quotas

Non-Farm Assets (Household, Vehicles, Others)

Part #4: Potential Farm Financing Strategies

Indicate which strategies you're considering and provide any relevant details.

Child(ren) purchase the farm at fair market value with their own funds.

Child(ren) make a down payment and finance the remainder (vendor take-back mortgage).

Transfer farm assets to child(ren) at adjusted cost base, deferring capital gains tax.

Farm Credit Canada (FCC) or other government programs for farm succession.

Traditional bank financing or agricultural lending products.

Part #5: Mom's & Dad's Income Needs

Estimate monthly living needs immediately after retirement and in ten years. If inflation is 2%, needs in 10 years will be ~25% higher; if 4%, ~50% higher.

Monthly Expenses

Expense$ Per Month Now$ Per Month in 10 Years
1. Automobile
2. Debt Payments
3. Food
4. Gifts & Donations
5. Insurance
6. Medical, Health & Dental
7. Property Maintenance
8. Property Taxes
9. Utilities
10. Investments
11. Vacation & Travel
12. Long-Term Care
13. Other
(A) Total Expenses

Non-Farm Income

Income Source$ Per Month Now$ Per Month in 10 Years
1. Canada Pension Plan
2. Old Age Security
3. Investment Income
4. Rental Income (after tax)
5. Other
(B) Income Total

Payments Required from Farm, net of tax (A - B)

Note: Make sure there is a "cushion" for unexpected expenditures. Your security and comfort should be your foremost concern.

Part #6: What Can the Farm Afford to Pay Mom & Dad?

Review your financial statements for the last fiscal year and project future cash flow.

Farm Revenue / IncomeNow3 Years5 Years10 Years
1. Farm's annual income
2. Add: depreciation (A)
3. Deduct:
Annual principal payments on existing debt
Future annual capital expenditures
Cushion for other expenses (B)
4. Cash Flow Available (A - B)
Notes:
  • Adjust for any unusual incomes or expenses from the last fiscal year
  • In a proprietorship, use income after deducting salary paid to child(ren) taking over
  • In a partnership, use income allocated to you
  • In a company, use income after child's salary but before company tax and your salary
  • For future years, account for increased profits from debt repayment

Part #7: Professional Support Entities

Provide contact information for your professional advisors to ensure coordinated planning.

1. Lawyer

2. CPA / Accountant

3. Financial Professional

Ready to Submit?

Once you submit this form, Jim Chamberlain will review your information and contact you to schedule a consultation. All information provided is kept strictly confidential.