Why Family Harmony Isn’t Enough: The Hard Truth About Farm Succession

When it comes to passing a farm from one generation to the next, many succession experts focus heavily on relationships: Can the family get along? Can siblings or parents communicate effectively? While these are important, there’s a far bigger factor that often gets overlooked: profitability.

In my talks, I often make succession experts uncomfortable because I say this bluntly: if the operation isn’t making money, there’s nothing to split. You can have the best relationships, the friendliest siblings, and the most cooperative family—but if the farm isn’t profitable, none of that matters.

Here’s the reality: If a farm is only generating a few hundred dollars a month per family member, it can’t sustain multiple households. No emotional negotiation, no careful mediation, no perfect communication can fix that gap. You simply cannot feed a family or reinvest in growth on a budget like that.

The key question isn’t, “Can the family get along?” It’s, “Can this operation support the next generation financially?” A succession plan must start with a solid business plan:

• What’s the path to growth?
• How much profit is needed to support two or more families?
• What changes are required to scale the operation sustainably?

Without answering these questions first, discussions about splitting assets, dividing responsibilities, or negotiating equity are premature. Money—or lack thereof—dictates the possibilities.

Succession planning isn’t about avoiding conflict. It’s about creating a viable business that can support future generations. Only then can the conversation about relationships, roles, and inheritance truly be productive.

Bottom Line: A farm succession plan that ignores profitability is a plan destined to fail. Family harmony is valuable—but it doesn’t buy groceries or pay bills. Start with the numbers first, then build the relationships around a business that works.

‍