Breaking Through Succession Planning Roadblocks on Your Farm
Nearly every article about farm and ranch transitions emphasizes how few family business owners have formal succession plans. They cite statistics on the lack of planning, warn about the costs of unplanned transitions, and …
Nearly every article about farm and ranch transitions emphasizes how few family business owners have formal succession plans. They cite statistics on the lack of planning, warn about the costs of unplanned transitions, and outline the potential damage to both finances and family relationships. The message is clear: failing to plan for your business transition can create serious challenges for the next generation.
Despite this, many family business owners still don’t complete their succession plans. One reason is that succession planning is never truly “finished.” Life events—births, deaths, marriages, divorces, family conflict, changes in business strategy, acreage fluctuations, and even natural or economic disasters—can all affect your plan.
But even with these realities in mind, many still hesitate. Here are common reasons why.
Feeling Stumped
Sometimes you simply don’t know where to begin. You may be unsure how to divide assets among children, or whether they should be divided equally. Maybe you don’t know how to acknowledge the contributions of family members who stayed to help while others pursued careers elsewhere. Or perhaps no one plans to return to the farm, and you don’t know how to plan for that. When there’s no clear solution, it’s easy to avoid the conversation entirely.
Conflict Among Family Members
Family conflict often contributes to planning paralysis. Maybe you and your spouse can’t agree on a plan. Perhaps tension between adult children complicates decisions about inheritance. Maybe you’re frustrated with an in-law or disappointed by a family member’s lifestyle or choices. When relationships are strained, it can be hard to picture a smooth transition.
Unrealized Goals
Many owners hope to grow their business and pass it on to the next generation. But if those dreams don’t materialize, planning becomes painful. Family involvement may not have worked as hoped, or the business’s long-term viability may be in doubt. Facing those realities can make planning feel like an acknowledgment of a dream that didn’t come true.
Overwhelmed by Complexity
Succession planning can be complicated. Farm Service Agency regulations, entity structures, trusts, gifting strategies—it’s a lot to navigate. When you add in family dynamics, it’s tempting to throw up your hands and think, “They can figure it out when I’m gone.”
Facing Your Own Mortality
Succession planning also means confronting your own mortality, and that’s something many people prefer to avoid. For some, not planning feels easier than facing the idea of stepping away or passing on.
Moving Past the Hesitation
The way to move forward is simple: talk it through. Discuss options, brainstorm ideas, write them down, debate the pros and cons, and visualize what different paths could look like. You can do this with your spouse, trusted friends, other family members, or advisers.
Sometimes it helps to talk to someone completely outside your industry—someone who owns a family business in a different field—to get a fresh perspective. Talking with others you respect can create accountability and momentum.
Then, focus on just the next step. Don’t try to complete the entire plan at once. Schedule another meeting, research a strategy, or start one small conversation. Step by step, the pieces will come together. Overcoming hesitation isn’t easy, but by understanding its sources, talking with others, and consistently moving forward, you can build a stronger path to the future.
To read the full article by Lance Woodbury, visit Overcome Succession Plan Hesitation.
How to Make Your Farm the Employer of Choice
Finding and retaining good help for today’s farms and ranches is no easy task. Rural community depopulation, fewer amenities like schools and hospitals, consolidating operations, slim financial margins, long hours, physically demanding and sometimes …
Finding and retaining good help for today’s farms and ranches is no easy task. Rural community depopulation, fewer amenities like schools and hospitals, consolidating operations, slim financial margins, long hours, physically demanding and sometimes dangerous work—all in remote locations—can make recruitment seem impossible.
Yet family-owned farms and ranches have unique strengths that can help them rise above these challenges. At De Boer, Baumann & Company, we believe that with the right strategies, your family business can not only attract quality employees but also retain them for the long haul.
Tap Into Your Rural Network
Rural communities are often built on deep social and historical ties. People know each other, attend the same churches, participate in local events, and compete in or cheer for school sports. These relationships create a natural recruiting network.
Even those who have moved away to pursue education or careers in bigger cities often maintain strong connections to their hometown. Many young people who left return once they start families, looking for the safety and community that small-town life provides.
Consider staying connected through social media or informal outreach to people who grew up in your area. A well-timed conversation might inspire a talented local to return home and join your team.
Highlight Your Family Business Culture
Family businesses offer something larger operations can’t: a unique, people-first culture. They can often provide more flexibility in work arrangements and respond quickly to an employee’s family needs.
When an employee or a family member faces a health challenge or family event, a family-run business can adapt and support them in ways larger organizations can’t. Family operations also tend to plan with the long term in mind, focusing on generational continuity rather than short-term profits.
This stability fosters loyalty. Many employees stay for decades, becoming part of the “extended family.” That kind of job security is rare—and it’s something only family businesses can authentically offer.
Get Creative with Benefits
Family businesses have the freedom to customize benefits that meet employees’ unique goals and circumstances. Some examples we’ve seen include:
Helping employees purchase land or a home
Allowing employees to run a small side operation alongside the main business
Offering remote workspaces in nearby cities to attract administrative or accounting talent
Providing opportunities for ownership or “phantom stock” so employees can build long-term wealth
Assisting with childcare or contributing to in-state college tuition for employees’ children
Providing housing or contributing to housing as a retirement benefit
Offering deferred compensation, such as cash or life insurance with cash value upon retirement
While you’ll need to follow applicable employment and tax laws, small family-run operations are often better positioned to think outside the box and create tailored, meaningful benefits packages.
Building Your Future Team
Attracting and retaining the right team members is challenging, but not impossible. By tapping into local networks, showcasing your family business culture, and offering creative benefits, you can stand out as an employer of choice—even in a competitive labor market.
At DBC, we understand the unique dynamics of family-run operations and can help you design strategies and structures that make your farm or ranch a place where people want to work—and stay.
To read the full original article by Lance Woodbury, visit How You Can Become the Employer of Choice.
How Effective Internal Controls Can Safeguard Your Farm’s Finances
Running a successful farm in today’s economic landscape requires more than a strong harvest. With fluctuating market prices, rising costs, and increasing regulatory demands, financial stability is key to long-term sustainability—and it starts with …
Running a successful farm in today’s economic landscape requires more than a strong harvest. With fluctuating market prices, rising costs, and increasing regulatory demands, financial stability is key to long-term sustainability—and it starts with strong internal controls.
At De Boer, Baumann & Company, we understand the unique needs of the agricultural industry. Whether you run a multigenerational farm, manage seasonal workers, or operate a complex mix of crop and livestock production, having structured internal processes can help protect your assets, reduce risk, and position your operation for growth.
What Are Internal Controls?
Internal controls are the policies and procedures an organization puts in place to:
- Safeguard assets
- Ensure accurate and reliable financial records
- Promote operational efficiency
- Prevent errors, fraud, and misuse of resources
For farms, which often involve multiple revenue streams, fluctuating inventory, and a variety of labor arrangements, internal controls are essential to keeping financial operations transparent and on track.
Why Farms Are Especially Vulnerable
Farms are unique businesses, and their structure often creates blind spots:
- Seasonal staffing means frequent onboarding and less familiarity with procedures.
- Cash transactions at farm stands or local markets may go unrecorded or mismanaged.
- Family-run operations can lack separation of duties, increasing the risk of unintentional errors or fraud.
- Inventory—whether livestock, equipment, or crops—is hard to track without the right systems in place.
These factors make internal controls more than just best practice—they’re a form of risk management.
Key Internal Controls Every Farm Should Consider
- Segregation of Duties – No single person should handle all aspects of a financial transaction. For example, the person approving payments should not be the one reconciling the bank account.
- Inventory Controls – Track inventory throughout its lifecycle—from planting to harvest, from hatchling to processing. This ensures accurate reporting and helps spot potential losses.
- Cash Handling Procedures – Establish written processes for handling cash, making deposits, and issuing receipts. This is especially important for U-pick operations or roadside stands.
- Bank Reconciliations – Reconcile bank accounts regularly (at least monthly) to catch discrepancies early.
- Technology & Cybersecurity – If you use accounting software or online banking, protect it with strong passwords, two-factor authentication, and regular system backups.
- Documented Policies – Write down your financial procedures—whether for payroll, purchasing, or reimbursements—so expectations are clear for everyone, especially temporary or seasonal workers.
- Succession Planning Controls – As many farms transition between generations, internal controls can provide structure, clarity, and continuity—especially when financial responsibilities are shifting.
The Payoff: Greater Control, Less Risk
Strong internal controls won’t remove all the unpredictability from farming, but they can bring peace of mind where it matters most. With clearer oversight, accurate records, and secure systems, farmers can make more informed decisions, strengthen lender relationships, and reduce vulnerability to fraud or financial mismanagement.
Agriculture is a demanding business, and every dollar counts. By taking time to assess and improve your farm’s internal controls, you’re investing in the future stability and success of your operation.
DBC’s Approach to Internal Controls in Agriculture
At DBC, our team of agriculture specialists takes the time to understand the full picture of your operation. We don’t just offer one-size-fits-all solutions—we partner with you to design practical, tailored controls that align with the scale, seasonality, and structure of your farm.
Whether you need a risk assessment, help developing written procedures, or advice on strengthening your existing controls, our experts are here to help you make confident, informed decisions.
Understanding Costing Systems for Agricultural Operations
Running a successful agricultural operation means knowing exactly how much it costs to produce your crops or livestock. Costing systems help you break down expenses, identify inefficiencies, and price your products appropriately—ultimately safeguarding profitability …
Running a successful agricultural operation means knowing exactly how much it costs to produce your crops or livestock. Costing systems help you break down expenses, identify inefficiencies, and price your products appropriately—ultimately safeguarding profitability in a volatile market.
Because farming often involves seasonal cycles, multiple product lines, and fluctuating input costs, a good costing system is crucial for informed decision-making.
Why Are Costing Systems Important?
A well-designed costing system allows you to:
- Understand the true cost per unit of production
- Compare profitability across different crops or livestock
- Identify areas where costs can be reduced without sacrificing quality
- Prepare accurate budgets and financial forecasts
- Support loan applications and tax planning with precise data
Without accurate cost data, it’s difficult to know which parts of your operation are thriving and which may be draining resources.
Common Costing Approaches in Agriculture
There’s no one-size-fits-all solution, but here are some of the most relevant costing methods for farms:
- Standard Costing
This method sets predetermined costs for inputs and compares actual expenses against them. It highlights variances, so you can quickly identify where prices or usage differ from expectations. - Activity-Based Costing (ABC)
ABC assigns costs to specific activities, such as planting, irrigation, or harvesting. This helps pinpoint which tasks are most expensive and may benefit from efficiency improvements. - Job Order Costing
For farms handling specific projects or batches—like custom growing or specialty products—job order costing tracks expenses per job, offering detailed insights. - Process Costing
Ideal for continuous operations like dairies or grain farms, process costing averages costs across all units produced, simplifying cost per unit calculations.
Key Costs to Track
To get the most from any costing system, pay attention to these cost categories:
- Direct Costs: Inputs like seed, feed, fertilizer, chemicals, labor, and veterinary care. These directly affect your production.
- Indirect Costs (Overhead): Expenses such as equipment depreciation, utilities, insurance, property taxes, and interest payments. These support overall operations but don’t link to a specific product.
- Fixed vs. Variable Costs: Fixed costs remain constant regardless of production volume (e.g., property taxes), while variable costs change with production (e.g., seed or feed). Understanding this difference helps with budgeting and pricing decisions.
How to Choose the Right Costing System for Your Farm
Choosing a costing method depends on your farm’s size, complexity, and goals. Smaller operations might start with simpler cash-based tracking, while larger or diversified farms benefit from detailed systems like ABC or job order costing.
Consider these questions to guide your choice:
- Do you need to track costs by individual crops, livestock, or projects?
- How important is it for you to identify inefficiencies by activity?
- Will detailed costing support your loan applications or tax reporting?
Answering these can help determine if you need a basic or more advanced costing system.
The Bottom Line
Accurate costing is more than just accounting—it’s a powerful management tool. With the right approach, you’ll improve profitability, streamline operations, and make confident, data-driven decisions that support your farm’s growth and longevity.
Partnering With You for Financial Clarity
At De Boer, Baumann & Company, we work with Western Michigan farms to develop practical costing systems tailored to your operation’s unique needs. Whether setting up a new system or reviewing your existing process, our agriculture specialists can provide the insights and guidance you need.
Tax Planning Strategies for Family-Owned Farms
Family farms are the backbone of American agriculture—and like any business, they face complex financial decisions that can impact long-term success. With fluctuating commodity prices, rising input costs, and generational transitions to consider, proactive …
Family farms are the backbone of American agriculture—and like any business, they face complex financial decisions that can impact long-term success. With fluctuating commodity prices, rising input costs, and generational transitions to consider, proactive tax planning is one of the most powerful tools available to protect your farm’s legacy.
Effective tax planning isn’t just about minimizing liability for the current year. It’s about creating long-term strategies that align with your operational goals, succession plans, and personal financial future.
Why Tax Planning Is Critical for Farms
Family-owned farms face unique tax considerations that differ from traditional businesses:
- High-value assets like land, equipment, and livestock
- Variable income streams depending on market conditions or crop cycles
- Intergenerational ownership and succession planning
- Eligibility for agricultural-specific credits, deductions, and deferrals
A well-structured tax plan can help farm owners take full advantage of available opportunities while avoiding unnecessary tax burdens.
7 Tax Planning Strategies for Family-Owned Farms
- Income Averaging
Farmers may qualify for income averaging, allowing them to spread current-year income over the previous three years. This can help smooth out the effects of a particularly profitable year and reduce exposure to higher tax brackets. - Section 179 Expensing & Bonus Depreciation
Purchasing equipment or other qualifying property? Section 179 allows you to deduct the full purchase price (up to a limit), while bonus depreciation lets you write off 100% of new or used eligible assets. These can be powerful tools for managing taxable income. - Prepaying Expenses
Cash-basis farmers can prepay certain expenses (feed, seed, fertilizer) for the next year and deduct them in the current tax year—helping reduce current-year taxable income when managed properly. - Establishing a Retirement Plan
Setting up a SEP IRA, SIMPLE IRA, or other retirement plan for yourself and any employees allows for tax-deferred savings while also reducing taxable income. This is particularly important for long-term planning, especially in family operations without formal benefits. - Managing Inventory Accounting Methods
How you value your crops and livestock (cash vs. accrual accounting, unit-livestock-price method, etc.) can significantly impact taxable income. Choosing the right method—and making timely elections—is essential for accurate reporting. - Gifting and Estate Planning
Gifting portions of the farm, equipment, or income-producing assets to heirs during your lifetime can reduce the size of your taxable estate and aid in succession. Coordinating these gifts with a long-term estate plan ensures a smooth transfer across generations. - Taking Advantage of Agricultural Tax Credits
Federal and state programs may offer tax credits for conservation practices, fuel usage, environmental compliance, and more. Staying informed on available incentives can create significant savings.
Start Planning Early, Reap the Benefits Later
Tax planning is most effective when it’s proactive—not reactive. Waiting until year-end limits your options, especially if your income or expenses fluctuate. Meeting with a qualified advisor throughout the year can help you adjust to market changes, maximize deductions, and stay aligned with your long-term goals.
How DBC Helps Family Farms Plan for the Future
At De Boer, Baumann & Company, we work with farms of all sizes across Western Michigan, helping family-owned operations create custom tax strategies that support both today’s profitability and tomorrow’s legacy.
From equipment purchases to succession planning, our advisors understand the full picture—and we’re here to help you make confident, informed decisions.
Rethinking Expectations for Nonprofit Board Members
Nonprofit boards play a critical role in guiding organizations, but unrealistic expectations for volunteers can create challenges. Excessive pressure around high-level giving and fundraising often results in boards dominated by donors who may lack …
Nonprofit boards play a critical role in guiding organizations, but unrealistic expectations for volunteers can create challenges. Excessive pressure around high-level giving and fundraising often results in boards dominated by donors who may lack the expertise, time, or capacity to govern effectively. This dynamic can discourage qualified individuals from joining or continuing to serve, ultimately affecting the organization’s stability and impact.
Key Responsibilities of Nonprofit Boards
While responsibilities can vary, nonprofit boards are generally tasked with ensuring legal compliance, sound governance, and mission fulfillment. The National Center for Nonprofit Boards identifies ten core duties:
-
Define the organization’s mission and purpose.
-
Select and evaluate the executive director.
-
Support the executive director while reviewing performance.
-
Ensure effective organizational planning.
-
Secure adequate resources.
-
Manage resources responsibly.
-
Oversee programs and services.
-
Enhance the organization’s public image.
-
Serve as a court of appeal when necessary.
-
Assess board performance.
Other experts highlight additional practices that help boards function effectively, including maintaining regular meetings and communication, documenting decisions, establishing committees, providing ongoing education, and ensuring diversity and representation.
Balancing Realistic Expectations
Despite extensive guidance, the sheer volume of responsibilities can overwhelm volunteer board members. Advocates like Vu Le and Michael Bobbitt have questioned traditional board structures, suggesting more inclusive and flexible models that reflect the community and reduce unnecessary burdens, such as mandatory financial contributions.
However, many experts emphasize that boards remain essential. Anne Wallestad, former CEO of BoardSource, notes that boards help nonprofits:
-
Maintain public trust through shared accountability.
-
Ensure strong organizational leadership.
-
Navigate CEO transitions effectively.
Amy Eisenstein, CEO of Capital Campaign Pro, recommends practical, realistic expectations for board members, including:
- Making personal contributions.
-
Sharing professional networks.
-
Advocating for the organization.
-
Encouraging others to contribute.
-
Expressing gratitude to supporters.
-
Actively participating in meetings.
By setting achievable expectations, nonprofits can attract a more diverse and engaged board, improve governance, and foster long-term public trust. While donors are vital, balancing fundraising with effective board leadership helps create a stronger, healthier nonprofit sector.
At DBC, our nonprofit specialists assist organizations in structuring boards and governance practices that promote engagement, accountability, and sustainable impact.
To read the original article by Timothy McClimon, please visit Forbes.
How Recurring Gifts from Donor-Advised Funds Can Strengthen Your Nonprofit
Recurring gifts are increasingly recognized as a critical component of sustainable fundraising. Donor-advised fund (DAF) participants who set up recurring grants in 2024 — whether automatically or manually elected each year — contributed more …
Recurring gifts are increasingly recognized as a critical component of sustainable fundraising. Donor-advised fund (DAF) participants who set up recurring grants in 2024 — whether automatically or manually elected each year — contributed more than three times the amount of donors making one-time donations. This reliable support helps nonprofits maintain programs and plan for the future, even during periods that traditionally see lower giving.
The Advantages of Automatic Recurring Gifts
Automatic recurring contributions provide dependable revenue streams that can smooth out seasonal fluctuations in donations. For example, research found that automatic gifts accounted for 25% of contributions during July 2024, a month typically associated with lower giving.
Beyond the financial benefit, recurring donors often become more engaged with the organizations they support. They are more likely to volunteer, interact with board members, attend events, and, on average, increase their donations by 8% annually.
Encouraging Donors to Choose Automatic Giving
Despite these benefits, many recurring gifts are still manually scheduled. According to Vanguard Charitable, only 24% of recurring gifts are automatic, while the remainder are set manually by the donor. Frequency preferences vary: 50% of recurring grants are annual, 20% monthly, 19% quarterly, and 11% twice per year. Younger or less-wealthy philanthropists often favor monthly contributions.
Nonprofits can guide donors by clearly communicating their preferred timing and frequency. Because DAF grants are not tied to traditional year-end deadlines, organizations have the flexibility to request contributions throughout the year.
Building a Stronger Revenue Foundation
Incorporating recurring giving into your fundraising strategy strengthens financial stability while deepening donor relationships. Encouraging both automatic and manual recurring contributions helps create a more predictable revenue base and fosters long-term engagement with supporters.
At DBC, our nonprofit specialists work with organizations to design and implement recurring giving strategies that maximize donor impact and provide sustained support for your mission.
To read the original article, visit The NonProfit Times and the research from Vanguard Charitable.
Four Ways to Engage the Next Generation of Donors
Successful nonprofits strike a balance between honoring long-time supporters and engaging new donors. Loyal contributors have sustained your mission and fueled meaningful impact over the years — but securing the future of your organization …
Successful nonprofits strike a balance between honoring long-time supporters and engaging new donors. Loyal contributors have sustained your mission and fueled meaningful impact over the years — but securing the future of your organization also requires reaching the next generation of givers.
Generational change is constant: while new potential donors are entering adulthood every day, long-time supporters will eventually step back. The challenge for nonprofits is twofold — maintaining strong relationships with current donors while cultivating the next wave of philanthropists.
Here are four strategies to help your organization attract and retain younger donors:
1. Analyze Your Data to Understand Younger Supporters
Many nonprofits are surprised to discover that younger donors often respond to traditional outreach — just not in traditional ways. For example, a direct mail campaign may prompt a younger recipient to visit your website and donate online rather than sending a check by mail. Without tracking this cross-channel behavior, these gifts may go unnoticed, leading to the mistaken belief that younger audiences aren’t engaging.
By using integrated data analysis across mail, digital, and other channels, nonprofits can more accurately measure results and make informed decisions about how to reach younger donors. The right analytics partner can help identify multi-channel giving trends and create acquisition strategies that appeal to younger audiences without losing sight of older donor preferences.
2. Explore New Outreach Channels
To reach younger demographics, nonprofits should consider expanding beyond traditional mail and phone campaigns. Alternative channels can include:
-
Face-to-face fundraising: Street campaigns and in-person events can be particularly effective, often leading to recurring gifts from supporters in their 30s and 40s.
-
Text messaging: Broadcast fundraising texts can achieve high engagement rates with younger audiences, generating click-through rates as high as 30–40%.
-
Connected TV (CTV): Many individuals under 50 no longer subscribe to cable, but they still stream video content. CTV campaigns can deliver mission-focused messages, build awareness, and drive donations among younger viewers.
3. Broaden Your Data Sources
Many organizations rely heavily on transactional history — such as years of giving and number of gifts — to guide their outreach. While this is useful, it can unintentionally favor older donors who have longer giving histories.
To identify and attract younger supporters, nonprofits should blend transactional data with other behavioral and demographic insights. AI-powered modeling can incorporate thousands of variables, providing a more complete picture of potential donors’ values, interests, and giving potential — regardless of age or donation history.
4. Build Awareness Before Asking for Support
Donating is rarely the first interaction someone has with a nonprofit. Younger audiences often need to connect with your mission in meaningful ways before making a financial commitment. That means starting with awareness-driven marketing campaigns and engaging them with relatable, accessible entry points.
Examples include social media influencer partnerships, mission-related challenges, or downloadable resources tied to your cause. These initiatives can generate qualified leads and build trust, paving the way for long-term donor relationships.
The Bottom Line
Connecting with younger donors doesn’t mean replacing your current supporters — it means building a broader, more resilient community. By applying data-driven insights, diversifying outreach channels, and building awareness early, nonprofits can inspire a new generation to give while continuing to honor and serve those who already do.
At DBC, our nonprofit specialists understand the unique challenges of fundraising in a changing donor landscape. We work with organizations to develop strategies that attract, retain, and engage supporters of all ages.
To read the full article “4 Ideas for Finding Your Next Generation of Donors” by Greg Fox, please visit 4 Ideas For Finding Your Next Generation Of Donors – The NonProfit Times