Webinar: Successful Ag Succession: Communications and Negotiation (Aug. 27, 2020)

Department of Agricultural Economics Author

08/28/2020 Added

45 Plays

Description

With Allan Vyhnalek, extension educator for farm and ranch succession, Department of Agricultural Economics. When those who are closest to us are also our business partners, things can get complicated. But planning and decision-making can go more smoothly with improved communications. Successful farm and ranch transitions depend on meaningful family discussions and even negotiations. This webinar will highlight specific skills and ideas that will help with these conversations. Tips and common traps of negotiations will be covered as well

Searchable Transcript

Search:

[00:00:18.960]Jessica Groskopf: Good afternoon, everyone. My name is Jessica gross cough. I'm an extension educator and the Panhandle regional economist
[00:00:26.820]Jessica Groskopf: For the Department of Agricultural Economics at the University of Nebraska, Lincoln. Thank you for joining us today.
[00:00:33.510]Jessica Groskopf: This is a part of a series of webinars produced by our extension farm and ranch management team.
[00:00:38.730]Jessica Groskopf: That typically runs every Thursday at noon. You can find the recordings of these sessions and a schedule of upcoming webinars and other resources at farm you and out.edu
[00:00:50.100]Jessica Groskopf: One of the resources that we would like to quickly highlight is the Nebraska rule response hotline.
[00:00:55.890]Jessica Groskopf: In times of stress, knowing when to reach out is essential that a brassica rule response hotline can provide mental health counseling information regarding legal assistance financial clinics mediation and more
[00:01:09.390]Jessica Groskopf: The hotlines toll free number is one 804 640 to five eight. In addition, and wealth of resources related to stress and wellness can be found at rule wellness that you and out that edu.
[00:01:23.760]Jessica Groskopf: During today's presentation, please use the chat box or Q AMP. A located at the bottom of your screen to ask questions we will address those questions at the end of the presentation as time allows. When those who are closest to us allow our business partners.
[00:01:41.970]Jessica Groskopf: When those who are closest to us. Our business partners, things can get complicated but planning and decision making can go more smoothly with improved communication.
[00:01:51.510]Jessica Groskopf: Successful farm and ranch transitions depend on a meaningful FAMILY DISCUSSION AND EVEN negotiations today to tell us about
[00:02:00.690]Jessica Groskopf: The skills and ideas that will help with communication regarding succession plans. I'm pleased to have us joined by Alvin Alec and extension agent and extension educator for Firm enrage succession and transition. Welcome, Alan.
[00:02:18.360]Jessica Groskopf: Yeah.
[00:02:18.630]Allan Vyhnalek: Thanks for thanks for having me thing. And thanks for the great intro introduction. I just appreciate very much. So I think you can see my screen. Okay, is everybody see my, give me a thumbs up. Just great. You see my screen. Okay. Is my is my slider.
[00:02:33.030]Allan Vyhnalek: If you
[00:02:33.510]Jessica Groskopf: Change it to the actual right now we're seeing you like in PowerPoint.
[00:02:39.150]Allan Vyhnalek: Oh, the actual talking on this. Let's
[00:02:41.550]Allan Vyhnalek: Try something else my mistake.
[00:02:46.770]Allan Vyhnalek: Was there again.
[00:02:56.490]There we go.
[00:02:59.670]Allan Vyhnalek: Okay, there should be better. Okay. Alright. Thanks.
[00:03:04.860]Allan Vyhnalek: So thanks for having, having me on. And I want to talk about succession as specifically about communication and negotiation, because I have not talked about that on at least unnecessary she had
[00:03:16.410]Allan Vyhnalek: With with any great depth and I want to go into a little bit more depth today because when it comes right down to it.
[00:03:22.950]Allan Vyhnalek: As I observe the families that I've worked with, especially over the last three years since being this position, but over the last 10 years working with with doing more presentations on succession farm success farmer and succession and transition
[00:03:35.730]Allan Vyhnalek: I can tell you that when we have problems. It's usually it's a vast majority of them. I know exactly what the percentage is. But I'm talking about 80 or 90% of the time.
[00:03:45.420]Allan Vyhnalek: The problems with the transition or problem with the succession has to do with bad communications or adult communications and then and then I'll get to the negotiation part when I get to negotiations, but
[00:03:57.210]Allan Vyhnalek: There's my contact information and there's, there's the website that I have a bunch of stuff at including this is going to be a few minutes out of a two and a half hour presentation I did last November, and the website.
[00:04:10.140]Allan Vyhnalek: Slash succession eggy kinda you know that he is like session. I've got all those things. Ryan did a great job of cutting all those things down into about 12 or 13 different segments of eight to 12 minutes each. So you can look at my whole talk
[00:04:25.380]Allan Vyhnalek: Okay onward. Today's topics. It's we're houses. Here we go.
[00:04:29.970]Allan Vyhnalek: I'll retired why we don't literally plan to retire when we're going to retire, what do I want to be when I grew up, some things on vision, goals, a little bit on communications and in negotiation and how to think about how we create more value, how we make that
[00:04:40.830]Allan Vyhnalek: It goes a little easier because we're doing the right thing. I congratulations for attending. I should say changed out the word coming as part of my regular in person slides. So I apologize, but
[00:04:51.870]Allan Vyhnalek: This is not a substitute for actual state planning instead of going to see a lawyer, but you know, I hope that what I do today makes you use your professionals time better if I could save you a few minutes of the lawyer I've saved you.
[00:05:03.960]Allan Vyhnalek: A nice chunk of change. So hopefully give you some thought to say sometimes the lawyer and think that'll work out very nicely.
[00:05:12.630]Allan Vyhnalek: So Barbara's don't most studies indicate farmers don't retire plan to retire. I mean, if you look at a recent
[00:05:19.320]Allan Vyhnalek: Study in the state of Iowa 78% of farmers, it said they don't plan to fully ever retire from farming, they may be with size of downsizing and include farming quite so much slow down a bit.
[00:05:31.620]Allan Vyhnalek: But they were never going to completely get out controls a huge reason at the farmers, you always will have to control and always plan for the next crop always think about the future.
[00:05:41.550]Allan Vyhnalek: Modern equipment and that you know that helps because some of the GPS enabled equipment better helps
[00:05:47.940]Allan Vyhnalek: Equipment is easier to work with a better help contributes because we're living longer feeling better longer and you know that makes people want to go longer and
[00:05:59.820]Allan Vyhnalek: I think we're finding is that there's no successor other retirement. I knew other retirement plans simple or also support continuing. So the point is, without a successor
[00:06:12.180]Allan Vyhnalek: You want to keep going because it just, it just seems like the right thing to do. And so farmers don't plan to retire. I'm not here to suggest that anybody has to retire, but I would say this.
[00:06:25.230]Allan Vyhnalek: At some point in time. Well, let me say it this way, we've not been able to avoid the pine box. Everybody's gonna have their demise. So what happens to your stuff when you're gone.
[00:06:34.230]Allan Vyhnalek: That's why not, I'm not asking you to retire, but I'm asking you to think about what happens to your stuff. That's the reason we should have succession plan.
[00:06:42.150]Allan Vyhnalek: Because more often than not, that playing tends to be deferred until some critical life event occurs, which forces the family to address the matter. According to study and
[00:06:51.390]Allan Vyhnalek: I think in New Zealand, if I'm not mistaken, AUSTRALIA ACTUALLY in Australia but but the point is is so same the United States said we tend to wait until we have some catastrophic event.
[00:07:03.000]Allan Vyhnalek: Which forced me to just a matter. And if you have that happen like a heart attack or a stroke or a farm accident or
[00:07:11.430]Allan Vyhnalek: coven 19 if you want to go there. Is it it's just
[00:07:16.350]Allan Vyhnalek: It's just what that does is it just creates a lot of stress.
[00:07:20.640]Allan Vyhnalek: Those catastrophic events, just kind of necessary necessary. And I would submit them. We don't make great family decisions when we're under that much stress so
[00:07:29.370]Allan Vyhnalek: We can make family decisions before we have that catastrophic event or that critical life, then I think we make better decisions. So that's my point on that. That's an important thing to consider.
[00:07:40.530]Allan Vyhnalek: We don't like to plan because we think if we assume it's complicated, it's mental work for sure when you go see a lawyer. They use a whole different set of the language sees a whole different set of
[00:07:50.490]Allan Vyhnalek: English, then we know most normal people use and you have to really work hard, mentally, to keep up with what they're saying and sometimes you just can't keep up. And so, you tend to not want to finish up what they tell you to do because it's just so hard.
[00:08:05.880]Allan Vyhnalek: We face our own mentality. We don't want mortality. We don't think about death, but
[00:08:09.900]Allan Vyhnalek: More I would have finding out more recently is that we're afraid if we do something, it will be wrong. And for sure if you make a decision today about your estate plan. So at some point time in the future it will probably be wrong. Something's because something will change.
[00:08:23.460]Allan Vyhnalek: People in your family or die out of order.
[00:08:26.760]Allan Vyhnalek: Somebody has a divorce. Somebody gets sick and passed away from cancer or something like that. So what I would submit, however, his destiny, we never get a plan. Done. Go ahead and do a plan. Get it done have it in place. In case you have that cash rock that critical life event, but
[00:08:43.590]Allan Vyhnalek: Also just understand that you could change it at any point in the future when things change when some changes your family, change the plan then then that makes sense now.
[00:08:53.280]Allan Vyhnalek: That's what I would suggest and changing the plan is less expensive than not having a plan and having things messed up.
[00:09:00.720]Allan Vyhnalek: There any career, there's three types of planning, it has to take place as end of life planning documents, just I think last week, David Akin was on and I hosted a when we talked about the
[00:09:13.140]The
[00:09:16.050]Allan Vyhnalek: Life of the life of state, excuse me, the power of attorneys peerless. That's what I'm trying to say all the power of attorneys end of life stuff to healthcare directives, those kinds of things.
[00:09:25.650]Allan Vyhnalek: And there's just a plan, which is the will trust LLC limited limited partnerships, all those those structures, you can use to put an estate plan together.
[00:09:33.930]Allan Vyhnalek: And then the third part is business succession planning. If you're so lucky to have somebody coming into your business and back to your operation.
[00:09:40.530]Allan Vyhnalek: Then you have to have this succession plan in place for them to be able to take over and not put them in such a position that they can't get take over. You have to make sure that it's designed in a way that they can take over.
[00:09:51.480]Allan Vyhnalek: And what I'm finding is that we don't do a good job communicating with a nice things. And so we have to make, we make sure we have good family communication for all three of these things to happen properly, but they'll need to happen. The
[00:10:05.700]Allan Vyhnalek: First conversation we have to have with any family is regarding a succession plan or a state plan is that when you're done with this planning. Are you still going to have a film don't make that assumption. Get that commitment. I just met with a family recently that had had a major
[00:10:24.270]Allan Vyhnalek: Critical life event occur where they were kind of mad at each other, they weren't talking to each other.
[00:10:29.730]Allan Vyhnalek: They had kind of split, if you will. And I didn't know that before the meeting, but they split
[00:10:35.640]Allan Vyhnalek: And it was. And so I'm not sure they were committed to that having to still have a Family Guy done
[00:10:41.220]Allan Vyhnalek: But I think before the conversation was done that day when we were talking to that family.
[00:10:45.360]Allan Vyhnalek: They did kind of come around and understand. Yeah, probably want to keep our family together our family's important to us. And so make sure you have that commandment, especially if there's been some disagreement fast.
[00:10:55.860]Allan Vyhnalek: And then secondly, grandpa and grandma or mom, dad, whoever that matriarch or patriarch, or they haven't seen page.
[00:11:02.430]Allan Vyhnalek: We have to make sure that work gets worked out first, because if we don't have them on the same page, they started talking to kids about a
[00:11:09.210]Allan Vyhnalek: Grandpa wants to do this or grandma wants to do that and they go talk to a different child then I'll send you pictures of pitting children against each other. And that's something you have to make sure you
[00:11:18.480]Allan Vyhnalek: Avoid and make sure that grandpa grandma or whoever those matriarch or patriarch are set. So we have screwed that up before it even starts that those are two critical pieces that have to go into this before we have any talk about succession, or even a state planning.
[00:11:35.670]Allan Vyhnalek: So for all the farmers out there that are watching today, make sure you are any if really for anyone for that matter, what are your assets.
[00:11:43.560]Allan Vyhnalek: Assets look like in retirement. Beginning to end in mind I sent this way. I'm retired.
[00:11:48.480]Allan Vyhnalek: When I first wrote this slide. I thought the farmers retired. I figured out that they don't. But let's say on the last day that you're farming. What does that operation look like
[00:11:56.100]Allan Vyhnalek: How big did he get how many acres. How many cattle, how big attractors, how many grain bins that you have trucks somebody you help. How many trucks.
[00:12:04.980]Allan Vyhnalek: What is that what is that vision. What does that. What does that utopia look like where's that perfect world look like at the end.
[00:12:10.860]Allan Vyhnalek: And then what do you do with those keys, you have to walk into the house on retirement day you get down to the last to the chores. If you're done working last field, you have to take the keys, the operation hand into somebody
[00:12:20.040]Allan Vyhnalek: What does that look like you're going to the next generation. You have an option. And next day, is it going on to a neighborhood neighborhood renter a tenant.
[00:12:28.140]Allan Vyhnalek: Establish that vision first kind of know where you're headed because that helps you make decisions along the way, that's my next slide because we have to establish goals, based on what you have for your end of end of farming.
[00:12:41.580]Allan Vyhnalek: Decision, the Lord's whatever that vision is for them to farming, you can now take your farming career if you got five years left 20 years
[00:12:49.290]Allan Vyhnalek: 15 years left and you can think about this is what I want to have happen in 510 1520 years segments to get me to that end. And that's what I want to look at, like at the end.
[00:12:58.530]Allan Vyhnalek: And you have to plan that out a little bit because, you know, if you get to where you want to be at retirement and it will also help you make better decisions along the way. I mean, I talked to one older farmer, there was
[00:13:07.890]Allan Vyhnalek: Was offered a piece of ground to buy, buy from his neighbor and this older FARMERS SAID.
[00:13:14.610]Allan Vyhnalek: I love that piece of gravity be a fun piece of ground to have, but I'm not going to buy it to 55 or 60 years old because
[00:13:22.740]Allan Vyhnalek: I don't have a son or daughter coming back into the author. I have no one come back to operation. If I had someone come back operation. I tell you, buying a piece ground, but I don't
[00:13:30.750]Allan Vyhnalek: So why would I buy it because he had his goal of these going to have to sell the operation of the operations going to end because he had no one coming back. So
[00:13:38.220]Allan Vyhnalek: You have to use those kind of things. So that's what I'm talking about to make better decisions along the way based on what's going to be your end, what happens to the end and
[00:13:47.040]Allan Vyhnalek: And also think about what does that future look for you to some somebody identity or Ballantyne say is
[00:13:53.790]Allan Vyhnalek: Are we, ending the business and we're passing the business on, are we selling the business to if you don't know
[00:13:59.010]Allan Vyhnalek: Okay, there's we just got done talking about those things that if you don't know. You start by visiting with your family, because that's what I'm trying to go side where
[00:14:06.630]Allan Vyhnalek: You have to start and make a first conversation or we're going to
[00:14:10.140]Allan Vyhnalek: Anybody in the family interested I talked to one young producer about young man, about three months ago, four months goes during CO, but he calls me up and he says, you know,
[00:14:21.210]Allan Vyhnalek: I think my wife and I want to move from our bigger town in Nebraska out to the farm and I want to take over for farming.
[00:14:28.170]Allan Vyhnalek: It's close enough to where we live. Currently, then my wife can continue her job in the town that we live and I can go out and work with down in the farm. I'll give up my
[00:14:37.650]Allan Vyhnalek: To in town job and go work with Devon far as dads get older and and essentially dad did not. He had not never told dad. That was his intention.
[00:14:47.550]Allan Vyhnalek: Is there is going to spring this on dad at whatever age. He was the height late 20s early 30s.
[00:14:53.670]Allan Vyhnalek: And I was kind of going, wow. It's too bad that they didn't have that conversation kind of all along that that we're going to get yourself established in town with careers desert and get some
[00:15:02.580]Allan Vyhnalek: Get some assets put together some cash put together and then I'm going to come work with you on a farm. It's too bad dad didn't know that because if you get a set up some things
[00:15:11.280]Allan Vyhnalek: Differently and and and and another couple came to my office here in Lincoln, about a year ago, not quite. A year ago by 11 months ago and he go yeah so
[00:15:22.770]Allan Vyhnalek: We're old enough that we solar we sold our equipment and we we we retired. We moved
[00:15:28.800]Allan Vyhnalek: And now we find out that we have a son that wants to move to a bigger city in Nebraska out to our places happened down the Panhandle somewhere and
[00:15:37.350]Allan Vyhnalek: He wants to start farming and I said, You sold your equipment and you know your son was going to come back to farm. And he said, Yeah, that's right. It's a little sad, isn't it. I said, yeah, it's a lot sad.
[00:15:47.220]Allan Vyhnalek: You should, you should you know strategy and hang on to that and you go, Yeah, let's do that. We didn't or someone's going to farm.
[00:15:52.860]Allan Vyhnalek: So just a couple of examples where families didn't talk and it ends up to be a you know you're putting people in an unenviable situation. So please have that Congress conversation, sir, communicate better
[00:16:04.560]Allan Vyhnalek: Here's a produce study that was just released last summer. He said, in order to resolve issues, half of you spend time thinking meeting and discussing with family members and here's the sad thing.
[00:16:14.520]Allan Vyhnalek: 30% never read hardly ever blue 30% only some of the time 30% and also time only 10%. Are you kidding me 60% hardly ever or never.
[00:16:26.700]Allan Vyhnalek: And only some of the time 30% and most of the time 10% that those numbers are way off, we should be most of the time 60 to 70% and some of the time to those 30%
[00:16:37.200]Allan Vyhnalek: We shouldn't be having never hardly ever we should always be involved, family members, communications, this is just
[00:16:44.910]Allan Vyhnalek: You know, this is too bad. And essentially what happens in my view is that we have a lot of
[00:16:51.660]Allan Vyhnalek: Farmers and a brassica Indiana Iowa all these Midwestern states. It came from European countries and have a lot of the values of Europeans coming in, was it you know our business is our business. So we don't share it with me. And I think that that that sometimes that
[00:17:08.370]Allan Vyhnalek: That attitude or that dead value that Family Guy. I'm not criticizing. I'm just saying that happens. It's true.
[00:17:13.980]Allan Vyhnalek: I guess in a way of being able to move forward. And because we have to share, share, share what's happening. Share we're thinking about, and we've that's not our
[00:17:23.220]Allan Vyhnalek: Mo, that's not our background, we're not used to thinking that. So what I suggest to people.
[00:17:28.620]Allan Vyhnalek: Is. Listen, I know you don't want to share. I know you don't think that's, that's what we do. But you need to share need to share with family, but I know understands you don't want your business, Nolan by every once you
[00:17:39.600]Allan Vyhnalek: Give the family, a kind of a gag orders is a we're going to share stuff with you and we expect you to keep it within a family. You don't share that outside the family that's for you to have. And you'd have no one else. So communication is huge. We gotta get this going. And
[00:17:56.010]Allan Vyhnalek: I said earlier when we have problems with families getting along and getting a succession plan and places. Most of the time from the lack of appropriate communication.
[00:18:05.220]Allan Vyhnalek: One way to start is to start your children to your parents and you should consider a family meeting.
[00:18:11.280]Allan Vyhnalek: Now, depending on who you're
[00:18:12.840]Allan Vyhnalek: Who you are, you think this is a good idea. You don't think this is good idea I've talked to lawyers that they hate the idea of autonomy, they would assume. Talk to grandpa grandma get their state plan put together and do it succession plan put together and do it.
[00:18:24.750]Allan Vyhnalek: They don't want to have other people involved because they're just mess it up for them.
[00:18:29.700]Allan Vyhnalek: For sure, if you're going to have a family meeting, you have to plan carefully. Are you going to have a disaster on your hands.
[00:18:36.030]Allan Vyhnalek: You know, it will family meeting with the idea that you're going to make
[00:18:40.560]Allan Vyhnalek: Decisions based on what happens, it's a family meeting at the family mean no, no, no offense to get your family together, talk about what happens to the farm or what happens to grandma's yellow pipe later. What happens to the
[00:18:53.070]Allan Vyhnalek: Antique tractor that's been restored. I think you're going to have the first meeting just to get input for all and get everyone had kids get everyone to get tell tell the mom and dad, the matriarch or patriarch what they'd like to have happen.
[00:19:06.600]Allan Vyhnalek: So people should be there should be mom and dad, and they're on their sons and daughters.
[00:19:10.980]Allan Vyhnalek: And some lawyers say, that's it. They don't want spouses there too. But I think spouses to be there. And I also think that grandchildren should be there that are adult age or adults.
[00:19:20.010]Allan Vyhnalek: I'm not gonna say what age. That is because I've seen 14 year old grand children that would be fine in a family like this and I've seen 24 year old grandchildren that should not be a family means like this. So you have to pick
[00:19:31.590]Allan Vyhnalek: Who you want their will. Who's, who's interested parties and get those people there, they should be there. And I'm particularly
[00:19:38.820]Allan Vyhnalek: On board with the idea that all the spouses are there. I really think that's important, who
[00:19:44.940]Allan Vyhnalek: Lawyers are some somewhere, as you said, No, I don't want spouses. They are, they tend to mess things up. I
[00:19:50.640]Allan Vyhnalek: For my dealings with families, I find out that sometimes espouses
[00:19:54.510]Allan Vyhnalek: As some of the best questions as they should be there. But more importantly, even if they don't ask questions, even if they only have something to say they should at least hear the dialogue and get get a tenor of what's going on there.
[00:20:05.640]Allan Vyhnalek: But I think in order to do this properly, you're not going to get it and have a family mean to make decisions, you're going to have a family means make input, because the end of the day.
[00:20:14.040]Allan Vyhnalek: How do you feel like your family. You feel like a family because you belong. And if you how you feel like you belong. We're not allowed to make input. So it's a really important part of
[00:20:23.280]Allan Vyhnalek: I think it's important part of the process to have them involved in some, in some way, in some capacity, at least at the beginning of the discussion.
[00:20:30.810]Allan Vyhnalek: So to make that work. You should set some clear ground rules one I think should be absolutely said is no criticizing of ideas. If someone says,
[00:20:38.670]Allan Vyhnalek: I think we should do this then you go, no, I don't want to do that. That's criticism. No, don't do that. Let them say what they're going to say,
[00:20:46.740]Allan Vyhnalek: And then you have to communicate properly back and forth about what's your views are if your views, different from what the idea that was brought forward is
[00:20:55.320]Allan Vyhnalek: And then also in any family almost any family, you're going to have somebody to talk solid wants to talk all the time.
[00:21:01.530]Allan Vyhnalek: They never quit talking, they just didn't want to jump in on everything and said they only have another thing to say. And so you might have to institute a gag rule.
[00:21:08.910]Allan Vyhnalek: For that person who wants to talk all the time and you simply say listen when we're talking about item A everyone's allowed to talk once
[00:21:18.810]Allan Vyhnalek: And no one can talk a second time. Don't ever wants talked about item A everybody rooms got a chance to talk
[00:21:25.140]Allan Vyhnalek: Then we go into it and then everyone can talk again once. And so you have to gag them down to make sure they do that properly and do what they need to do, and all those kinds of things. So
[00:21:36.420]Allan Vyhnalek: You have to know criticizing the ideas. Let everyone talk have a gag rule, if needed, and just first me is only to gather input know decisions are made, then when you have decision making meeting.
[00:21:49.470]Allan Vyhnalek: Then you use to graduate one need to get input. They used to go room and decoder rule in this cases.
[00:21:54.930]Allan Vyhnalek: You as the goal sets the rule. So that's grandpa and grandma great grandma grandma on your children. That's great, usually doesn't include spouses usually would not absolutely not include grandchildren, because they don't have the decision power.
[00:22:10.710]Allan Vyhnalek: I think non local family should be involved somehow I've sat meeting with a meeting with a
[00:22:15.870]Allan Vyhnalek: farm family last year and we had a son from a different city near and about 300 miles away. They didn't want to drive in and I said, absolutely don't drive. Don't take time to do that.
[00:22:26.970]Allan Vyhnalek: But we're looking and we got that we got a phone out and we put him on speaker phone so you can listen in to the whole meeting and he made several excellent comments.
[00:22:34.800]Allan Vyhnalek: And he didn't say a lot but you got to hear it all and that's important just to make sure they're they're involved somehow
[00:22:41.220]Allan Vyhnalek: And then we get to the sweetheart deals and we have to make sure we don't have those surprises in place. I think my favorite sweetheart deal was
[00:22:49.860]Allan Vyhnalek: The story I one of the counties. I've worked in my career and the county in the story goes that there are four children that were sitting down to talk
[00:22:58.980]Allan Vyhnalek: After mom and dad passed away. Dad was gone by now mom passed away to for children and so
[00:23:04.200]Allan Vyhnalek: One of the boys was the farmer and the other three were to sit down and talk with her brother.
[00:23:08.550]Allan Vyhnalek: And say, You know, we want you to continue farming, you're going to, you know, and we're not necessarily going to change anything. We just need to know we do a felony to figure out where we're at.
[00:23:16.620]Allan Vyhnalek: So they asked a boy, that was the farmer what do you pay in mom and dad for him and to be true at this time of the world's this time of the day ranch could have been something like
[00:23:25.890]Allan Vyhnalek: 250 to $350 per acre depending on exactly where you're at on it defaults to avid it should have been some number around 300 bucks an acre. And the farmer said well I'm paying mom and dad $65
[00:23:40.560]Allan Vyhnalek: And so that that's the sweetheart deal, you have to be careful of. You have to think about that because
[00:23:46.350]Allan Vyhnalek: Maybe $65 an acre wasn't very much and I think that most the normal emotional reactions would say that it was terrible. That was a terrible deal and this guy was screwing mom and dad is really being unfair. But I'm saying
[00:24:00.030]Allan Vyhnalek: Be careful about the sweetheart deals and be careful about situations like that because I'm betting that a $65 an acre.
[00:24:07.410]Allan Vyhnalek: Grandpa and grandma couldn't pay the property. So it was probably paying property tax will that son.
[00:24:12.990]Allan Vyhnalek: Who took care of maintaining all the irrigation equipment or even installing irrigation, the sun did grandpa grandma didn't installing irrigation equipment for $65 an acre.
[00:24:23.160]Allan Vyhnalek: And who router care of. If you had to remove a fence to get the pivot to go all the way around who puts a bulldozer. He knew the fence to do all that work to grab that ground and have the pivot going well. But the Sunday.
[00:24:34.800]Allan Vyhnalek: And there's a forest it on a place to take care of painting the
[00:24:38.430]Allan Vyhnalek: Painting and and replacing windows and and changing the roof and and you're doing deciding and all those things too far as well at $65 an acre up at the sun.
[00:24:48.720]Allan Vyhnalek: And the sun took care of taxes and it's. And by the way, the son of his wife, his spouse probably took care of
[00:24:54.840]Allan Vyhnalek: Grandpa and grandma is a transition from the farmhouse to assisted living to a nursing facility to hospice to the end of life.
[00:25:03.060]Allan Vyhnalek: And into the non farm kids probably weren't involved because they need, in many cases, they're not even around. So at the end of the day was $65 too much.
[00:25:13.710]Allan Vyhnalek: Maybe not. Now if son is doing all those things for his parents. So if you hear about a sweetheart deal. It could be as we are deal. I didn't know
[00:25:22.380]Allan Vyhnalek: They also make sure you ask these clarifying questions and make sure that you consider that maybe isn't that big of a sweetheart deal. I'm not sure.
[00:25:30.000]Allan Vyhnalek: I did, to be sure, communications, the younger generation acquire better communications that we receive as boomers or as the older generation. Our parents generation. These did receive my say I talked about that. That's the, that's the I my business, my business. I don't share that
[00:25:47.610]Allan Vyhnalek: So for for communication. Listening is the key practice and make sure you use
[00:25:54.720]Allan Vyhnalek: You said what you heard the doctor them said, and make sure you understand the other person's point of view. Seek first to understand then to be understood. Okay, so
[00:26:03.180]Allan Vyhnalek: I didn't tell you this, Jessica, would you get back on at least audio for me. Are you there. Can you can get that on audio is that can be okay.
[00:26:10.800]Jessica Groskopf: Sure, I'm here. Okay, great.
[00:26:12.720]Allan Vyhnalek: Let's have a quick dialogue. I'm sorry. I didn't prep you on this. It's not hard. This is not hard. Okay, so
[00:26:20.310]Allan Vyhnalek: Let me, let me do first demonstrate how we're not going to communicate. Okay, let me pray appropriate communication. Okay, so here's my question to you.
[00:26:28.350]Allan Vyhnalek: What are your plans for this weekend. It's Thursday, you should have some plans for the weekend what anything at all. You got planned at all for the weekend.
[00:26:35.400]Jessica Groskopf: Sure. So we're going to irrigate this weekend because we saw water running and hopefully my folks are going to come up from Colorado and we're going to go to a couple of big auction.
[00:26:46.500]Allan Vyhnalek: Well, that's interesting. But you know I would. I look forward to this weekend is being able to go see my grandson Harry in Omaha me he's he's he's only around once a while because he's he's
[00:26:56.160]Allan Vyhnalek: A way to split marriage deal and in silver hair is going to be around this weekend. We're going to go up there and see him, we're going to
[00:27:01.320]Allan Vyhnalek: Play a little ball in the yard and should be cooler on Saturday, and we're really looking forward to that. And we might even go to Claire So my daughter granddaughter is a soccer game. And so just going to spend a little
[00:27:12.240]Allan Vyhnalek: Time that family is gonna be awesome. I really look forward to that. Okay, so
[00:27:17.010]Allan Vyhnalek: Here's my point of that conversation. Do not listen to anything. Jessica said, not really.
[00:27:22.200]Allan Vyhnalek: I asked her the question. So I can say what I was doing on the weekend. I wanted to brag to her about my weekend. I don't care what happened about her weekend. So here's the more appropriate way to do it in my view and Jessica, you need to change your answers out of here.
[00:27:36.060]Allan Vyhnalek: But here's, here's how I think it probably should go on these would be better to go this way. So, Hey, Jessica. So, what do you, what's your plans for the weekend.
[00:27:45.270]Jessica Groskopf: Yeah, so we're still running water. So we'll be out in the field a lot. But then we're going to go to in some auctions. This weekend as well.
[00:27:51.840]Allan Vyhnalek: So who's, who's, what do you, what do you want. Are you still watering the wet.
[00:27:57.600]Allan Vyhnalek: Dry Dry buildings.
[00:27:59.760]Jessica Groskopf: So we have water for both corn and rideable still all the surface water. So coming down.
[00:28:04.770]Allan Vyhnalek: And so your corn is just do store Cornerstone any water is how mature enough to be done.
[00:28:09.630]Jessica Groskopf: Now, so we're about two weeks behind you guys, so we're not quite filled out yet.
[00:28:14.700]Allan Vyhnalek: Okay, so what what kind of options. Are you interested in going to, what does that look like
[00:28:20.760]Jessica Groskopf: So the family that used to own our implement dealership is having an estate auction. So lots of antiques and
[00:28:28.350]Jessica Groskopf: Equipment type stuff for my husband.
[00:28:31.590]Allan Vyhnalek: This is more for your husband and for you. Then I take it.
[00:28:34.680]Jessica Groskopf: I don't know. They have some pretty good ceramics stuff on there so we
[00:28:38.850]Allan Vyhnalek: Both agree. Alright, so what did I say that calm. Thank you very much. This guy. I apologize, but thank you so what what in that conversation. What did I. What did I say about what I was doing this weekend. Nothing. Okay.
[00:28:52.500]Allan Vyhnalek: And so to do this properly have to avoid the yes or no questions, like you say, Do you have plans and also you have to say yes or no.
[00:29:00.750]Allan Vyhnalek: You'd have to say, you know, what are your plans and then they can answer. So it's like good to open us it was opening questions, who, what, why and start to start to say, bless others to start this question sequence.
[00:29:14.130]Allan Vyhnalek: To see get to the full answers, rather than just a yes or no answer. And you have to kind of practice that I'm, I'm still not all that good at it, but
[00:29:22.590]Allan Vyhnalek: You have to make sure you repeat what you were taught you have them say, and then asked him clarifying questions that they add on to it. So you really fully understand
[00:29:30.480]Allan Vyhnalek: And understand this is about what's happening on a weekend says no big deal. But when you get to those hard topics. That's where you really have to delve in and get to more clarification and more more detail. But what's going to go on.
[00:29:42.090]Allan Vyhnalek: So the other thing I think it's got to happen guys show empathy show concern and focus on the intent.
[00:29:47.880]Allan Vyhnalek: In other words, if somebody is kind of frustrated about something go so I sense that you're frustrated that and then you then you ask them a question.
[00:29:57.630]Allan Vyhnalek: They can expound on why the frustration and you have to stop and listen more yet slow yourself down and stop and listening and more when emotion is high.
[00:30:06.570]Allan Vyhnalek: You need to get to the heart of the issue when you don't feel like you were being understood when you try and talk to them, or when the other you when you can tell the other person doesn't feel understood
[00:30:14.940]Allan Vyhnalek: The key here is to look for some of the non verbal to the
[00:30:19.320]Allan Vyhnalek: Some of the physical clues. Some of the body language clues about what's going on so you can get to the heart of an issue. So if you really want to communicate properly.
[00:30:27.360]Allan Vyhnalek: You have to spend time studying that other person thinking and you have to listen to what they're saying and ask them questions about their about their saying so that you're not
[00:30:35.910]Allan Vyhnalek: The bottom line is, don't listen with the intent to reply. Listen to the tent to understand. That's the best that's that's the number one mistake. We have to attend to two replies that attend to understand and so
[00:30:51.120]Allan Vyhnalek: Here's a video that kind of summarizes what I'm trying to save his communications and and just a mistake did that in this video. There's the mistake that I make all the time. Somebody describes a problem to me and I want to fix it.
[00:31:04.590]Allan Vyhnalek: And that's not what needs to happen. So let's try and watch it. It's only about a minute and a half long.
[00:31:11.070]She's pretty sure you know
[00:31:14.820]And sometimes it feels like it's right up on me and I can just feel it, like literally feel it in my head. And it's relentless and
[00:31:27.210]I don't know if it's going to stop. I mean, that's the thing that scares me the most is that I don't know if it's ever going to stop.
[00:31:34.020]Yeah.
[00:31:37.410]You do have nail in your head.
[00:31:42.660]Is not about the nail. Are you sure because, I mean, I bet if we got that out of there. Stop trying to fix it. No, I'm not trying to fix it. I'm just
[00:31:50.220]Pointing out that maybe the nail is cause you always do this. You always try to fix things when when I really need is for you to just listen. See, I don't think that is what you need. I think what you need is to get the nail. I'm not even listening now. Okay, fine. I will listen. Fine.
[00:32:05.040]It's just
[00:32:06.720]Sometimes it's like there's this achy
[00:32:12.360]I don't know what it is.
[00:32:15.180]And I'm not sleeping very well at all. Not I, sweaters are snagged mean all of them.
[00:32:23.790]Sounds
[00:32:25.950]Really hard
[00:32:32.880]Oh, come on. If you would just don't
[00:32:40.200]Allan Vyhnalek: Okay, so
[00:32:43.110]Allan Vyhnalek: Just really quick, just know that just know that
[00:32:47.820]Allan Vyhnalek: That's a classic not
[00:32:51.150]Allan Vyhnalek: Not
[00:32:53.070]Allan Vyhnalek: Going for the emotion not listening for the empathy not listening to the frustration, you
[00:32:58.680]Allan Vyhnalek: Know you can see what the problem is you have to allow them to say it in their own words. Otherwise, they don't feel like they're being listened to. So, you know,
[00:33:06.090]Allan Vyhnalek: You get yourself into a jam with someone think about. It's not about the nail. Wait a minute. Did I hear what they said, Do I really understand you, I fully appreciate that and you can go on and get stuff done prefer
[00:33:18.420]Allan Vyhnalek: The other, the other part of my time if you got any questions, please put them in the chat or the Q AMP. A will find
[00:33:25.110]Allan Vyhnalek: Little pile and talk about is a little bit about negotiation go sit on top of us vehicles that the kids and the grandkids and my case or
[00:33:34.290]Allan Vyhnalek: The grocery store and gets the candy aisle and you go, I want to get involved when I gave it away in na na na and of course the family thing.
[00:33:41.400]Allan Vyhnalek: And we negotiate in a lot of part of our lives for farming is say things like leasing and purchasing and rental rates and customer we do. It's a part of our everyday business negotiations.
[00:33:52.590]Allan Vyhnalek: It's a back and forth process designed to reach an agreement when you do the party I both sharing a post issues. We all want to go chase. It is, however, what I submit for our discussion today is that we're all talking, we have to win.
[00:34:07.860]Allan Vyhnalek: So about 1969 I've been about 14 years old. I remember take on with my dad to the implement dealer in downtown clean Nebraska.
[00:34:18.810]Allan Vyhnalek: And we went in there and dad haggled with that salesman over the last hundred bucks on that track to purchase as a US tractor purchase he haggle that salesman over that last $100 for two hours. Two hours.
[00:34:37.170]Allan Vyhnalek: We got done. And let me explain something about 1969 1969 I was 14 I was old enough to start hauling bales square bales 6080 pound square rectangular videos alfalfa business and I wrote, I get paid.
[00:34:54.000]Allan Vyhnalek: 75 cents to a buck and a quarter now.
[00:34:58.470]Allan Vyhnalek: And by the time I graduated from high school and 73 year was a buck and a half to buck 75 an hour and one guy PB $2 an hour. And now I thought I was in hog heaven.
[00:35:09.060]Allan Vyhnalek: But the bottom line is you think that's what we're looking at 1969 for formulators
[00:35:14.790]Allan Vyhnalek: We get down with the NGOs to our negotiation now and dad and Yemen, the dad is salesman salesman finally decides what's the difference between 50 bucks you come up 30 bucks on it down 50 bucks. They made the deal and your auditor.
[00:35:26.760]Allan Vyhnalek: Got back to the pickup started heading home and I go, dad is we just, we just took two hours haggling over basically 50 bucks. What do you, what do you do, and he's, he looked at me and go, son, or is it out. He goes, where else we're going to make $25 an hour this afternoon.
[00:35:44.370]Allan Vyhnalek: And go okay to say, I get it. But that's how we're taught to negotiate we're taught to be have to when we talked to, we have to beat up the other person.
[00:35:53.550]Allan Vyhnalek: And and and get a split and come somewhere in the middle. I'm not saying that's wrong.
[00:35:59.130]Allan Vyhnalek: I'm just saying that we're talking about family and you're talking about a state of estate planning and how that stuff is going to get split
[00:36:08.130]Allan Vyhnalek: How's your family members feel if you're trying to beat them over the head for that last 50 bucks. I'm not sure that's the way we should be treating family that's all I'm submitted.
[00:36:17.550]Allan Vyhnalek: Think about that is you think about negotiation, especially as negotiation with the family because I'm not sure. Winning is the right way.
[00:36:25.650]Allan Vyhnalek: When we have to do negotiation after member that's should not be about the wedding and invite the way we usually create more than valued and 100% we can create more value than hundred percent
[00:36:37.050]Allan Vyhnalek: Value get that stuff. So when I tried to trade pickups. I don't necessarily try to trade to get a better price. I tried to play with the idea that. Okay, so this is your price. Okay, that's good. But does that include my class.
[00:36:53.070]Allan Vyhnalek: Is that include running boards. Does that include the title cover. Does that include the the bug shield up front, you know, deflector shield so
[00:37:02.190]Allan Vyhnalek: Those are the kinds of things I try and do to create more value and and maybe we can make a deal on that. So we have to give that some thought and there's other ways to think about creating more value.
[00:37:14.490]Allan Vyhnalek: That's just one example one brief so simple example.
[00:37:18.660]Allan Vyhnalek: When we have when we have family things going on with negotiation. However, we have emotions. We have emotional situation. Somebody probably passed away, or somebody you know you
[00:37:32.040]Allan Vyhnalek: As their emotions tend to entangle negotiations and I went to a workshop at Harvard here a couple of three years ago now and
[00:37:40.170]Allan Vyhnalek: We, we learned is spent a whole day talking about these five roadblocks emotions that gets through up negotiations, but basically
[00:37:50.610]Allan Vyhnalek: And so here, I'll go to your real quick. It's just like appreciation and words are really appreciating the people that were talking to and if you go saying what are they being listened to. Every Good job, good job with communication.
[00:38:02.370]Allan Vyhnalek: If we have not
[00:38:04.380]Allan Vyhnalek: That they're going to throw up a roadblock gives you a negotiation. So you have to really stop and connect with them and find out what their issues are find out there must allow they're emotionally attached to things that sort of thing. You really have to get through them.
[00:38:16.650]Allan Vyhnalek: If we if we have other people that were talking to you, especially family members are we going to have a proper affiliation with those. Now number. So the rosary treating those parties his adversaries, or his colleagues or his family.
[00:38:29.070]Allan Vyhnalek: I guess that's kind of what I lead off with because when we negotiate didn't shoot intrigue Family Singers negotiate with people. So check your affiliation in the door. Make sure that you train especially family members as family members, not as adversary. If you have to negotiate.
[00:38:47.070]Allan Vyhnalek: The third one is autonomy. So are we require somebody to the decision making power for a decision and then they don't use it, or excuse me if we countermand dad or your don't let them make that decision.
[00:39:00.210]Allan Vyhnalek: What they feel like they're being blocked and so make sure you give if you give somebody autonomy that they can keep it that they don't get taken away from
[00:39:08.190]Allan Vyhnalek: I'm going to talk about that. And when I talk about that when I do my full blown workshop I was talking about john as a
[00:39:15.420]Allan Vyhnalek: Farmer If you have a one of your son's come back the farm with you don't get infantry complete troll and control the farm immediately. Don't do that, because every six months you both the manager.
[00:39:27.210]Allan Vyhnalek: Can be mad at you because you question one of these decisions and you'll be mad at him because he just seemed like you were to go
[00:39:33.270]Allan Vyhnalek: So that's what I'm talking about. You're going to give autonomy. You can't question, a decision, so I will probably give and yet. And yet, if you stick the kid at the Business Center and pitchfork.
[00:39:43.740]Allan Vyhnalek: Never been in making decisions. He's probably never stick around long either. So you have to play that carefully and do that appropriately.
[00:39:51.420]Allan Vyhnalek: When it comes to family, family and status. Are you treating all family members is full of full recognition or eating some of them inferior Lee and when it comes to old man like I am, I can poke fun at myself for a couple things here.
[00:40:07.440]Allan Vyhnalek: On status specifically because the older guys especially tend to want to treat women different than another man.
[00:40:15.660]Allan Vyhnalek: And they want to trend to treat all young different than their age group.
[00:40:20.820]Allan Vyhnalek: So if you you have to check in your status at the door. If you have the grandkids there. If you have younger family members there, that sort of thing.
[00:40:28.470]Allan Vyhnalek: Make sure that you give them proper status if they're part of the family. They're part of the family doesn't mean you're a woman does it mean that they're young. They're family members. So you have to treat them the same.
[00:40:37.830]Allan Vyhnalek: And so I joke in my workshops that the young women have two strikes against them. But that's what we have to check everything at the door and say okay
[00:40:46.830]Allan Vyhnalek: If I got down here. Am I treating them all the same, or by recognizing your status. So am I giving them proper time and then
[00:40:53.940]Allan Vyhnalek: We also have to check the role because if we give someone a role. They are they fulfilled with the role that they have
[00:41:00.660]Allan Vyhnalek: And if we take a young person and don't give them much of a role. Are you going to scoop the grain bout unload the truck and that's all we kind of let them do we don't give them any
[00:41:09.540]Allan Vyhnalek: Being full decision making jobs and how they going to learn. Number one and number two how they feel about that. So we have to make sure that people are filled with the role, I never family recently where the grandparents.
[00:41:22.350]Allan Vyhnalek: Basically within their 70s, but they were still wanting to be active with the farm. They still wanted to help out the grandfather wanted to go drive trucks whatever was needed move people around who get parts.
[00:41:32.280]Allan Vyhnalek: And then the boys in their late 40s early 50s didn't want to like grandpa do anything anymore because they determined him to be too old.
[00:41:39.360]Allan Vyhnalek: And I don't know what the truth was there, but I was suspected with somewhere in the middle. And so you can find things for them to do so. He felt like he
[00:41:46.260]Allan Vyhnalek: And so the grandparents grandparents. In this case, we're felt felt like they were left out. They didn't have appropriate role without operation, they felt like they still under to didn't belong
[00:41:54.930]Allan Vyhnalek: So I'm asking families and think about that carefully and think about where they could have people
[00:41:59.160]Allan Vyhnalek: With the appropriate role and how they would get along and what would be the right thing for them to do. I mean, do we stick to stick a 70 year late 70 year old grandfather into a tractor and letting plant or stick them in a carbon and harvest
[00:42:15.120]Allan Vyhnalek: If you have GPS stuff if you can then maybe you can't, I don't know, depends on his, his physical condition. Where does this cognitive condition is it depends. It just depends, but but i'm not saying it. You have to completely rule that out either
[00:42:29.010]Allan Vyhnalek: And that's kind of the end of my talk. Those are things I kind of wanted to
[00:42:31.920]Allan Vyhnalek: Get across and think about have a stink about communications part of the big ocean part. Here's some websites, the top ones. My what the website that Brian's helped me with
[00:42:41.040]Allan Vyhnalek: I need some of these other job Baker's attorney out longhand is a terrific set of articles. They're very detailed, very, very tactical they're good articles on how to do some session stuff.
[00:42:51.690]Allan Vyhnalek: Dave Baker's beginning farmer center and our State University as good as the information, Agra, let's
[00:42:56.820]Allan Vyhnalek: Go to see out of Kansas City has good information and Purdue has some good information. So, and there's other places too. I'm not saying these are the Randalls. I mean, just something to think about. Also, I want to make quick mention of the road response hotline.
[00:43:09.690]Allan Vyhnalek: If you need a free hour with an attorney or a financial planner or something like that. Don't be afraid to try and call them.
[00:43:17.100]Allan Vyhnalek: Or if you need to help with the go station or need help mediation, don't be afraid to call them. He called me too. I'm a reseller for you to response hotline.
[00:43:25.680]Allan Vyhnalek: You get an appointment. They go to clinics across the state right now they're doing clinics virtually but you can still get in their scope schedule and that number is 800-464-0258
[00:43:35.640]Allan Vyhnalek: Also there's a next gen program if you bring someone new, back to the farm is to be at a good
[00:43:41.100]Allan Vyhnalek: Beginning farmer information for the Brassica department bag and there's that phone number right there. Ask for Carla bomb VA un Carla.
[00:43:48.510]Allan Vyhnalek: And get information about the next gen program very important programs. Very, very cool to have something, think about those things I want to mention today, Jessica. And I don't know if we have any questions, you will. If you haven't, please type them in the channel, try and try my best and
[00:44:04.200]Jessica Groskopf: So our first question is, what is the biggest obstacle to official transition
[00:44:11.070]Allan Vyhnalek: Well, this biggest obstacle is the lack of communication for the fan. I mean, you did you typically somebody do something out, they don't they don't they don't talk to listen to each other. They don't talk
[00:44:24.030]Allan Vyhnalek: You know, I've met with the farm family and the younger couple wanted to ask over a couple of they could have an acre at the far side of the
[00:44:33.900]Allan Vyhnalek: Building site to build their own house. And when we, when we met and they told Mom and Dad. They want to have an acre. Mom, Dad will say, Well, sure. The. Why would you build a house. We plan to move to town will buy a house in town. He can sustain our house.
[00:44:49.800]Allan Vyhnalek: And that interested enough created an uncomfortable silence because at the end of the day before that, when they got all broken down and ending day everybody told us he showed her the cards, where
[00:44:59.700]Allan Vyhnalek: The, the, the system, the daughter in law didn't really want to be in mom dad's, you know, Mom. Dad's house because it wasn't good enough for her. She wouldn't have her own brand new house. So, and, and there's some
[00:45:12.270]Allan Vyhnalek: That so I'm kind of joking when I say it, but there's some truth to things like that. And in this case it was told to story frame house, a typical farmstead house to didn't have any events going to be the upper upper floors, where their daughters would have to sleep.
[00:45:25.260]Allan Vyhnalek: And so that was that was going to be a proud differ air conditioning end or heat so I understood their concerns and so
[00:45:31.410]Allan Vyhnalek: But it's communication dating communicating together. What do you want to do with how about housing, what would the next generation is coming back. So
[00:45:37.710]Allan Vyhnalek: To me those things like that just shouldn't get left out, and you should be critical to this should be always included that's that's the point. Honestly,
[00:45:46.920]Jessica Groskopf: So Alan, you gave some good examples with buying a pickup how you can add value in the negotiation. What are some good examples maybe from afar perspective of how we can add value talk about estate planning.
[00:46:01.470]Allan Vyhnalek: So that's that's that's interesting because, you know, essentially, you have to consider every for every farm. That's going to be different, but you have to consider.
[00:46:10.620]Allan Vyhnalek: What skills and what attributes, you have to bring to the table. I mean it that younger person's been trained
[00:46:16.530]Allan Vyhnalek: And has some financial backgrounds, you know, good accounting classes good financial fun. Did you say i'm gonna i'm my my skill here could be to do the books and we don't have to have a CPA do quite so much. We could add this
[00:46:28.230]Allan Vyhnalek: Tone down or CPA bill. I could take some of that on and we just go to CPA to finish up on taxes, instead of having to do all the data entry and some of that sort of thing.
[00:46:36.060]Allan Vyhnalek: Us an example of one thing a younger person could provide because they had the computer skills. They all they're all trained very well computers better than I ever will be.
[00:46:44.040]Allan Vyhnalek: And your divine mind is they can do some of those things and provide value that that did that farming operation doesn't have right now and it could also be like
[00:46:51.750]Allan Vyhnalek: Like for instance, your husband's a pretty dang good mechanic and they're saving you saving thousands of dollars on
[00:46:58.290]Allan Vyhnalek: repair bills because your husband could just fix stuff. And it's, that's an example in your family where I shared sorry I didn't need to bring me into this, but that's a family this example in your family.
[00:47:09.540]Allan Vyhnalek: Where are your he's contributing to that operation.
[00:47:14.250]Allan Vyhnalek: And so, though. That's how he's adding value is that, that's my point. And that's, that's it. You guys have a great example right underneath your nose of how you add value to an operation. So you have to look for those
[00:47:24.570]Allan Vyhnalek: Those ways to to make this all everybody kind of work out between the generations makes it all work.
[00:47:32.310]Jessica Groskopf: So our next question is how does the pandemic change succession planning.
[00:47:38.640]Allan Vyhnalek: Well, that's an interesting question. If you've listened to my need to talk in a couple of other seminars. Just recently I would say that
[00:47:46.170]Allan Vyhnalek: What I've said what I mean changes is a pandemic is brought some awareness of succession planning and we knew early on in March and April, that there was some especially well no not just older people, but even people
[00:47:58.020]Allan Vyhnalek: Middle aged and even little bit younger people that were in a rush to get their health care power of attorneys and some of that sort of thing.
[00:48:04.530]Allan Vyhnalek: And healthcare directives in order in case he ended up on a ventilator.
[00:48:07.650]Allan Vyhnalek: And so I but but the bottom line would be, you still need those all those documents and all the documentation doesn't make a difference with it with the demise is it can be pandemic into your heart attack and be a tractor accident can do these things.
[00:48:20.340]Allan Vyhnalek: We are granted access and I had a friend of mine from college, it ended up in the green button.
[00:48:24.540]Allan Vyhnalek: And it just two weeks ago and add have the rescue squad and we fly a helicopter everything else getting out and and use. Okay. But thank God it's okay.
[00:48:34.710]Allan Vyhnalek: The bottom line is we don't know when that things going to happen that event. And so they they divided. So think about what it's so damn it kind of brings it to our attention, but
[00:48:45.300]Allan Vyhnalek: There's all these other reasons why you need to have all these these documentation and stuff in order. Just, just to be consistent.
[00:48:52.770]Jessica Groskopf: We have a great question on the chat and I know, Alan, you and I discussed this, but
[00:48:58.260]Jessica Groskopf: What do you recommend in situations in which the older generation refuses to acknowledge that succession planning needs to take place due to age and dirty rereading health. The Next Generation wants a plan. What's, what's your recommendation.
[00:49:16.890]Allan Vyhnalek: So you know that's that's always tough and
[00:49:21.480]Allan Vyhnalek: So what's what's what's interesting is, in some cases that older generation may have done something they're just not sharing it.
[00:49:26.880]Allan Vyhnalek: I think there's some cases that happens and i would i would admit. Also, there's some cases they just don't want to think about it. So they just refuse to think about it. I'm going to live forever. I'm never going to die.
[00:49:36.180]Allan Vyhnalek: But do they never recognize is that they don't get to take any dirt with them into conference usually boy divert dirt. They don't get to take their dirt with them with me to take the bride prize bull with them. But that doesn't happen.
[00:49:46.620]Allan Vyhnalek: So probably don't attack them on the six lack of succession planning, but just really
[00:49:53.880]Allan Vyhnalek: Really spend some time with good communication really spend some time getting into their head and times how they're feeling about stuff. And what they think about stuff.
[00:50:02.700]Allan Vyhnalek: And you really establish a good rapport really steady to spend some extra time over there to take what they're
[00:50:08.850]Allan Vyhnalek: In their house with them or wherever there happened to be spent some time with them.
[00:50:13.380]Allan Vyhnalek: Get up. Get broke down a little bit. I mean, communication standpoint and then you kind of ease into that conversation. You don't just bored it out. Hey,
[00:50:21.330]Allan Vyhnalek: So my day to 6am I going to get a this land or not, you know, you don't do that, you have to kind of really kind of go back door on it.
[00:50:28.920]Allan Vyhnalek: The other thing to strategy, I think, to think about is, is maybe you can't get to them. Maybe you're not the person that could push their buttons.
[00:50:35.640]Allan Vyhnalek: But maybe you can identify somebody else it is. So what do they have a friend who they have a clergy. Do they have a banker, they have
[00:50:43.110]Allan Vyhnalek: I don't know who the day somebody else in the community that can push your dad or your dad was button to get him to think about what is the state plan B.
[00:50:50.820]Allan Vyhnalek: And maybe that's not you. Maybe their lawyer can do it. I don't know. But there's usually somebody that can push your button. If you can't get their button going. Those are the suggestions I have. It's not perfect.
[00:51:00.720]Allan Vyhnalek: It'll never be perfect but you gotta try and I didn't. Please keep trying to keep going.
[00:51:07.860]Jessica Groskopf: So can I add to that.
[00:51:09.720]Allan Vyhnalek: Yeah, please.
[00:51:11.160]Jessica Groskopf: So by them, not having a plan. They do have a plan right indecision is a choice. So
[00:51:19.140]Jessica Groskopf: The other thing is that if they don't have something written the State of Nebraska has a series of laws that will then come into place at their death.
[00:51:27.300]Jessica Groskopf: So effectively down. There's an article on your website on the succession website regarding what Nebraska is estate planning for the firm would be so
[00:51:38.850]Jessica Groskopf: You know, just because they don't have a plan doesn't mean it's something won't happen. There is a process then to allocating those assets to the errors by Nebraska, a long
[00:51:55.290]Allan Vyhnalek: Way the rest of State law doesn't necessarily allow me to pass it on to my
[00:51:58.710]Allan Vyhnalek: Skip a generation pass on my grandchildren or anything like that. So if you have specific ideas like that mine. You better have something in place, because the brass de la la la la. You do some of the stuff that you think is just automatically going to have
[00:52:10.950]Jessica Groskopf: Another question in the chat is how do you make your siblings feel better about the fact that mom and dad sold the farm.
[00:52:18.690]Jessica Groskopf: To this person 20 years ago on contract that's now paid off. And because of that, because of inflation is now worth a lot more I since they feel like I should owe them because the farm is worth more now.
[00:52:34.500]Allan Vyhnalek: So,
[00:52:36.090]Allan Vyhnalek: Oddly enough, you know, I had that situation happen. I've had that situation happened to me.
[00:52:41.610]Allan Vyhnalek: I'm not going to go in and add those details, but essentially the same thing happened when my mom and dad got the land to my brother and myself.
[00:52:48.570]Allan Vyhnalek: And I have to keep till I just keep telling myself. Listen, I signed off on the deal when it happened all the all the all the parties are in on the deal and happened, it happened.
[00:52:59.880]Allan Vyhnalek: And that's that's done. It's sunny is finished. Don't think about that anymore. Yes. They've made the evaluations changes depending on what property you have and how much inflation and all that sort of thing, but
[00:53:11.760]Allan Vyhnalek: We can't, we can't, we can't go back and revisit that that's water under the bridge that's over with. It's just like saying
[00:53:17.820]Allan Vyhnalek: Well by God. There was $7 corn back in 2012 and I didn't get enough cash, man. No, you agree to a specific cash right you got paid for it. It's done. Don't worry about that.
[00:53:28.890]Allan Vyhnalek: And you can't do the same thing with the state planning and you can't can't hold a grudge against your family members.
[00:53:33.810]Allan Vyhnalek: Because everybody agreed at that time bells bells. Oh, fine. So that's done. That's this that's finished. The other thing I'll say quickly as
[00:53:41.250]Allan Vyhnalek: The on foreign kids are. They are going to continue on, or the dawn farm grandkids is going to continue on, probably to get a different consideration and then the off farm kids and so
[00:53:51.000]Allan Vyhnalek: The fair versus equal go to my go to that website. Looking at my server SQL video and you get some information on now.
[00:54:03.870]Jessica Groskopf: will encourage you, if there are any more.
[00:54:07.320]Jessica Groskopf: Questions to go ahead and drop them in the chat, we're about five minutes from our time limit. So if there are any more questions, please go ahead and type those in just a reminder to check or not you and al.edu for a schedule of more webinars in this series focused on
[00:54:25.800]Jessica Groskopf: Impact on agriculture in Nebraska. The series continues next Thursday at noon with a discussion on cow retention and the current market.
[00:54:36.510]Jessica Groskopf: Also after this webinar is then you'll be receiving a short 32nd survey in your email, and we would really appreciate your icon today's webinar and your input on future sessions.
[00:54:50.430]Jessica Groskopf: So with that,
[00:54:54.720]Jessica Groskopf: I'm not seeing any more questions come through for you, Alan.
[00:54:59.700]Jessica Groskopf: So thank you, Alan, and everyone for joining us today are recording today's webinar will be posted@farm.eu and our.edu where you can also register for our upcoming webinars. So thanks again for joining us and have a great rest of your day.

The screen size you are trying to search captions on is too small!

You can always jump over to MediaHub and check it out there.

Comments

0 Comments

Webinar: Successful Ag Succession: Communications and Negotiation (Aug. 27, 2020)

Description

Searchable Transcript

Comments icon comment

Related Channels

Comments