Making a start in farm succession planning
This seminar is giving RBC clients the tools to create the future they want, for farm and family.
It’s said that every journey, no matter how long, begins by taking a single step. For RBC Royal Bank clients, it’s now a little easier to begin the long journey known as succession planning.
Beginning in the spring of 2006, local branches in several Canadian communities hosted the first editions of the new RBC Farm Succession
Planning Seminar. For RBC farm and ranch clients, the seminar was a chance to learn about the key issues in planning for the future of farm and family. For the RBC staff who conducted the seminars, they were a chance to hear first-hand about the issues that concern people the most.
“According to Deloitte Touche, 75 per cent of Canadian farms will change hands over the next 15 years,” says Randy Mann, Vice President, Commercial & Agricultural Financial Services, who hosted a seminar for clients in North Battleford, Sask. “The trouble is, most people don’t know where to begin.”
Decide, plan, implement
In RBC Royal Bank’s way of looking at it, he notes, a family farm transfer has three stages.
First, the family decides what it wants to do. Second, the family works with its advisors to create a plan. Third, family and advisors implement the plan. While lawyers, accountants, realtors and investment advisors are keen to help out with the second and third stages, it’s the first stage that’s causing the real bottleneck in Canadian succession planning.
“We’ve taken the view at RBC Royal Bank that we can play a role in helping people decide what they want their future to look like,” says
Mann. “Once they know that, the plan can fall into place relatively smoothly.”
Different generations, distinct priorities
Over a period of three or so hours, the RBC Farm Succession Planning Seminar combines live presentations, commentary via video, group brainstorming and workbook exercises. By the end of the seminar, the completed workbook provides an action plan for participants to hold a family meeting to discuss everyone’s future plans.
 Account manager Glenda Gesy, who presented the seminar to clients at her branch in Kamloops, B.C., found that
younger and older participants tended to see things a bit differently.
“The senior generation is sometimes uncomfortable when the idea of debt is discussed,” says Gesy. “The younger generation is more open-minded about using debt to advance the business plan and take the farm where they want it to go.”
Following the seminar, Gesy was pleased to see her guests head home with the information needed to hold a productive
intergenerational family meeting. She believes that if family members can gather together, discuss the issues and begin to take action, then the RBC Farm Succession Planning Seminar has done its job.
“Most people don’t have a succession plan, but many know they need one,” says Gesy. “It’s a relief for people when they can finally get the ball rolling.”
For more information on the RBC Farm Succession Planning Seminar, please contact your RBC Royal Bank
account manager.
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