Only 30% of farms transition successfully to the second generation. For Tanner Winterhof, co-host of the Farm4Profit podcast, that statistic represents more than a data point—it represents families who poured decades into building something meaningful, only to watch it dissolve when the time came to pass it on.

Through hundreds of podcast episodes and conversations with succession planning experts, Tanner Winterhof has developed a clear perspective on why so many farm transitions fail and what families can do differently. His conclusion challenges conventional wisdom: the farms that fail don’t fail because of taxes or land valuations. They fail because of conversations that never happened.

“Succession planning isn’t about paperwork,” Winterhof emphasizes. “It’s about family, legacy, and identity.”

Lessons from the Farm4Profit Podcast

Farm4Profit has featured numerous experts on farm transition, but few have resonated as deeply as Elaine Froese, a farm family transition specialist who has appeared on multiple episodes. Winterhof points to her core message as foundational: start with the family, not the forms. Create safety for tough talks.

According to Winterhof, one of Froese’s most valuable insights is the importance of normalizing the fear of “losing control” that founders experience. Founders aren’t just worried about finances. They fear being pushed off the farm. They fear loss of identity. They fear irrelevance. Until those fears are acknowledged openly, legal documents alone won’t move the process forward.

Froese recommends structured conversations with agendas, time limits, and turn-taking rules. As Winterhof explains, process beats personality. When emotions run high, having a framework keeps everyone focused on solutions rather than old grievances.

Eight Principles for Successful Transitions

Drawing from years of podcast conversations, Winterhof has identified eight principles that separate successful farm transitions from failed ones.

People over paperwork. Safety, values, and rules for communication come first. The human dynamics must be addressed before involving attorneys.

Process beats personality. Meeting charters, agendas, and decision rules reduce conflict. Families cannot rely on everyone simply “getting along.”

Decisions transfer before equity. Confidence builds through staged delegation. The next generation should prove themselves with responsibility before ownership changes hands.

Governance accelerates growth. Advisory boards and KPIs improve clarity and reduce drama. Winterhof consistently encourages farmers to treat their operations like businesses.

Write it down. Visible goals and playbooks align behavior. What’s understood isn’t always agreed upon until it’s documented.

Include the whole family. In-laws and off-farm heirs need voice and respect. Excluding them creates resentment that surfaces at critical moments.

Timeline and milestones. Transition should be treated as a project with stages, not a single event. Most successful transitions unfold over five to ten years.

Scenario planning. Retirement and farm access should be stress-tested under various market conditions.

Common Pitfalls Winterhof Warns Against

Beyond the principles that drive success, Winterhof highlights several traps that consistently derail farm families.

The most common pitfall is avoiding the conversation until it’s too late. Health crises, unexpected deaths, and market downturns don’t wait for convenient timing. By the time families are forced into succession discussions, their options have narrowed significantly.

Second is letting the fear of losing control stall progress. When founders have built something with their own hands for decades, handing over responsibility can feel like surrendering their identity. But control held too tightly becomes a stranglehold on the farm’s future.

Third is confusing fairness with equality. Equal division sounds fair but often isn’t. A child who has worked the farm for twenty years has different standing than a sibling who pursued another career. Fair means proportional to contribution and commitment.

Finally, Tanner warns against assuming the next generation “just knows” what’s happening. Explicit, repeated, written communication is essential.

Custom Solutions for Every Operation

Winterhof emphasizes that every farm transition is unique. What works for a row crop operation won’t necessarily work for a diversified livestock farm. What works for a family with multiple engaged children won’t work for a family whose only interested heir is a grandchild.

He advises families to design for their specific values, cash flow, and goals. Building an advisory circle that includes a CPA, attorney, banker, and ideally a facilitator who can navigate family dynamics is critical. These advisors should meet annually, not just during crises.

Documenting the “why” behind decisions matters as much as the decisions themselves—not just for legal purposes, but to preserve relationships when questions arise years later.

A Call to Action

Winterhof challenges farm families to take one concrete action: schedule a meeting, write down goals, or consult an advisor. Something that moves the conversation forward.

“Don’t just run your farm the way your grandpa or dad did,” Winterhof advises. “Treat it like a business to ensure it thrives for future generations.”

For those ready to dig deeper, Farm4Profit offers extensive resources on succession planning, including episodes featuring Elaine Froese and other transition specialists who provide actionable frameworks for navigating this complex process.