"Feasibility of Going Back to The Farm" w/Michael Langemeier

In this week's episode, we speak to Michael Langemeier, Purdue University Professor, about the "Feasibility of Going Back to The Farm". In business, it is a commonplace activity to perform a feasibility study before buying or expanding a business to allow a family member to join. In today's interview, we discuss exactly that. While there are many ratios and calculations to perform to help answer this question, this episode looks at the decision from a 30,000 foot view. It provides some critical information, questions to ask, and pitfalls to avoid when making this important decision. Throughout the episode, Tracy and Michael discuss: Some of the biggest mistakes that he sees students and farm families making when it comes to going back to the farm. Michael proposes a better strategy for success. Why must this feasibility conversation be had? They discuss how clear communication is essential before this process begins. Not when the second generation arrives back at the farm. Why knowing your financials is key to having this conversation. Michael explores how the financial implications of this decision go much deeper than just one new wage. He shares how some of the most important costs and considerations of welcoming back the next generation to the farm are often completely missed. He provides key financial considerations beyond the wage. They touch on compensating the next generation and sweat equity. They address ownership and the benefits of looking at the opportunities gained/missed by investing a portion of your working career in the farm, especially if ownership conversations are avoided. Whether you are the founder or the next generation looking to come back to the farm, this conversation should not be missed. This episode provides amazing insight to make sure that everyone is making this decision with their eyes wide open. Having clarity and asking the tough questions ahead of time can put both generations on a path to success and continued family harmony. Isn't that what we all want? ............................... Show Resources: For more information about farm business management, check out these links: https://ag.purdue.edu/commercialag/home/resource/2020/10/financial-management/ https://ag.purdue.edu/commercialag/home/resource/2020/08/is-it-feasible-for-my-farm-to-add-an-operator-or-hired-employee/ https://ag.purdue.edu/commercialag/Pages/Resources/Management-Strategy/Business-Planning/Should-Sweat-Equity-be-Used-to-Compensate-a-Returning-Family-Member.aspx  ............................... Don't forget to sign up as an Impact Farming Insider so that you are first to know about all-new episodes, fantastic contests, and new promotions https://www.farmmarketer.com/impact_farming_show/sign-up …………………………. Thank You to our Show Sponsor: Smart Nutrition™ Boost your soil's performance with new Smart Nutrition MAP+MST. Learn More  ………………………….