1/3 of poll respondents expect new ownership soon, but succession plans
not in place
TORONTO, April 30, 2015 /CNW/ - Business succession is an inevitable
step for entrepreneurs and while a critical part of a business plan,
few actually have a succession plan on paper. This is evident in
Canada's farming community as a recent poll of Canadian farmers shows
that one-third of respondents indicated their farms are likely to
change hands within the next few years, with the majority of those (62
per cent) expected to transfer to family members or partners, but only
30 per cent of these farm owners are doing any formal succession
planning to ensure a smooth transition to the next generation.
The 2015 Canadian Agricultural Outlook Survey noted that, among the
uncertainties farmers face each year, upcoming changes in the ownership
structure of their business is a topic relatively few farmers are
prepared to address with a formal succession plan. This survey was
conducted by Ipsos Reid on behalf of the Western Producer; RBC
Agriculture was a key partner in developing the survey.
"We know that farmers are often so busy with their day-to-day work, it
can be difficult to even think about the day when they won't be
farming," said Gwen Paddock, national director, Agriculture, RBC. "But
we also know that the future success of their farms depends upon having
a well thought-out succession plan in place. Working with a qualified
advisor, accountant and lawyer to formalize a succession plan can help
ensure a seamless transition to the next generation of farmers and
provide the means for today's farmers to enjoy their retirement."
Paddock provided the following tips to help farmers prepare their
Timing is all-important: If possible, begin your planning process at least five years in advance
of when you think you might sell your farm - whether you're thinking of
a partial or full sale. This will help you to better handle any bumps
along the way.
Tap into available expertise: Financial advisors and accountants have expertise that can be
invaluable; bring them in as you start your planning process. You can
also find useful information online, for example through the Agri-Food Management Institute.
Share your plan: Involve key family members or partners - especially those you are
considering passing the farm to - and do so early in your planning
About the 2015 Canadian Agricultural Outlook Survey
The 2015 Ag Outlook Survey provides key information about Canadian
agricultural producer opinions towards their businesses, a short-term
review of their major investments and some projections about what they
are considering in the near future. The survey of 455 farmers, all
subscribers to Western Producer and Glacier FarmMedia publications, the
largest agricultural publisher in the country, was conducted between
December 3 - December 22, 2014. RBC Agriculture was a key partner in the development of the survey.
Sixty-seven per cent grain and oilseeds producers, 81 per cent from
Alberta, Saskatchewan, and Manitoba. Sales of $10,000 to over $2
million. Farms with sales of $250,000 or more made up about two-thirds
of the survey.
About Ipsos Reid
Ipsos is Canada's market intelligence leader and the country's leading
provider of public opinion research. With operations in eight cities,
Ipsos employs more than 600 research professionals and support staff in
Canada. The company has the biggest network of telephone call centres
in Canada, as well as the largest pre-recruited household and on-line
panels. Ipsos' Canadian marketing research and public affairs practices
are staffed with seasoned research consultants with extensive
industry-specific backgrounds, offering the premier suite of research
vehicles in Canada—all of which provide clients with actionable and
relevant information. Ipsos is a leading global survey-based market
research group. To learn more, visit www.ipsos.ca
About RBC Agriculture
RBC has provided financial services, investment products and expert
advice to Canadian agricultural producers for more than 135 years.
RBC's agriculture clients reflect all sizes of operations from hobby
farms to commercial scale farms and ranches and Agribusinesses. Whether
you are interested in expansion, transition or succession, one of our agricultural banking professionals across the country can be of assistance. For more information, please visit www.rbcroyalbank.com/commercial/agriculture/.
For further information:
Kate Yurincich, RBC Communications, 416-974-1031
Sophie Garber, RBC Communications, 416-974-2138