Human resource risk and succession planning

Abstract

Purpose – The purpose of this paper is to illustrate the benefits of utilizing teams of personal and financial consultants to work with farm families in New York State on issues affecting farm business performance. Design/methodology/approach – Program experience in implementing an integrated consulting model provides a framework for illustrating how such a model may be utilized on farms and other family businesses for succession planning. Findings – An integrated personal and financial consulting model is effective in producing lasting business results such as business growth, improved profitability, and reduced interpersonal conflict on farms in New York State. Originality/value – Farmers employ a multitude of risk management tools, such as crop insurance, to reduce various types of risk affecting their farm businesses in New York State, but an area often overlooked by farmers is managing human resource risk, namely succession risk. As the average age of farmers in the USA continues to increase, employing new tools and strategies is critical when developing an effective business succession plan for farmers.