by Sara Schafer
Here’s a staggering fact: Families fail to keep their families and fortunes together for three or more generations 90{f2533179b7c7e7cbdbc11018732de14c82f3d44c9f1e829e9a046cc47141a2e6} of the time.
While these seem like unbeatable odds, with good planning and preparation, farmers can become part of the coveted 10{f2533179b7c7e7cbdbc11018732de14c82f3d44c9f1e829e9a046cc47141a2e6} who stick together, says Johnne Syverson, a family business consultant with Transition Point Business Advisors in West Des Moines, Iowa.
The key is to focus on all four types of wealth and capital—human, intellectual, social and financial
Syverson says human capital involves who we are, where we come from and the talents of the family. Intellectual capital includes work and life experiences, formal and informal education, spiritual beliefs and practices and work ethic. Social capital consists of a person’s contribution back to the community. Finally, financial capital is comprised of assets, such as real estate, machinery, livestock and buildings.
“These components make up a more holistic view of wealth,” Syverson says. “It is important to transfer all components of wealth to the next generation. Without which, the financial wealth will eventually disappear.”
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Source: Farm Journal Legacy Project
