Sharing Our Experience with Farm Family Business Meetings

“Most business wrecks I have encountered were not a result of poor farming skills or weak

financial capacity; they stemmed from poor management and communication practices that

ultimately lead to business stalemate, paralysis, and ultimate business fragmentation. Investing

time and effort to build professional business communication systems is just as important as

servicing and maintaining equipment or ensuring there is a reliable source of operating credit,"

says Dick Wittman-Wittman Consulting. A well-structured meeting that includes all owners and

spouses is one of the best tools to ensure continued family harmony and business success.

Preparation for the Meeting

Before the meeting, review your articles of incorporation or operating agreement. These

documents often outline how and when an annual meeting should be conducted, including the

date, time, purpose, place, notice requirements, and other pertinent information such as voting

rights.

Establishing a Code of Conduct

A code of conduct or ground rules is a set of expectations agreed upon by all meeting

participants. When determining these guidelines, ask, “How can we practice effective

communication?” and “How will conflicts and differing opinions be resolved?” Some popular

points on the code of conduct might be:

1. Limit the amount of time or number of times a person can discuss a topic.

2. Do not interrupt someone speaking.

3. No “meeting before the meeting” or “meeting after the meeting.”

4. No criticizing ideas.

By implementing these ground rules, family members will be encouraged to participate in the

meeting. Over time, by honoring this code of conduct, your family will build trust, and difficult

conversations will become easier.

Annual Meeting Agenda

Often, an annual meeting is an opportunity to review the performance of the past year. It is

important during meetings to use facts to discuss the business. It is often helpful to have various

advisors present to answer technical questions. This section should also include a discussion of

the succession planning process, including leadership transition and talent development.

After a review of past performance, your agenda should turn to strategic planning. This is where

the bulk of the discussion should occur. Key questions to ask during the meeting include: What

are the risks currently facing your business? What are the opportunities? What are the short-term

and long-term goals?Finally, always set the date, time, and location of the next meeting. This helps engrain these

meetings as a common practice in your business.

Sample Meeting Agenda

Annual Business Meeting (open to all owners and spouses)

• Opening Remarks

• Overview of business results

• Review of responsibility centers (yearly highlights, challenges)

o Crop operations

o Livestock operations

o Equipment operations – key maintenance and replacements

o Marketing

o Specialty ventures, alliances

o Other responsibility areas

• Business outlook/assumptions about future operating environment

• Strategic issues affecting owners

o Business growth

o Management team

o Retirement plans, transition and succession planning

o Quality of life issues – personal vs. business balance

• Plans for wider meetings to inform extended stakeholders

Case Study Interview Insights: Donna Hutchens-WDK Farms, Inc.

Donna Hutchens notes the importance of having outside counsel present, not to present

information but to ensure respectful interactions. "The more important role of outside counsel is

that we treat each other more respectfully. When you are concerned with what others outside the

family will think, you have a far lesser chance of things going off the rails.” The annual business

meeting, held after formal board meetings, helps align on-farm and off-farm shareholders,

preventing tensions from undermining the family's legacy. “The tension between on-farm

shareholders and those shareholders not involved in the day-to-day is always going to be there.

The annual business meeting is a great tool to get us all on the same page and ensure those

tensions don’t boil over and undo what the previous generations have worked so hard to build.”

Expert Insights into Effective Family Business Meetings

1. The owners need to directly communicate with all stakeholders the date, time, and

location of the first meeting. This reinforces that the owner generation is in favor of these

meetings, rather than other stakeholders pushing.

2. Select a comfortable, neutral location for meetings. Often this is not the kitchen table.

There are often free, private locations in your community to hold these meetings, such as

your County Extension Office, library, or bank.

3. Be conscious of time. If you set an hour-long meeting, begin and end on time. When

meetings run longer than expected, people often get frustrated.Article Sourcing and Additional Tools

For a comprehensive understanding of effective management practices in family farms, consider

these invaluable resources:

• Personal Insight from Matt Boos: Boos offers expertise from his experience with

Agrigrowth Consulting and insights from working within the agriculture field.

• Jessica Groskopf's Perspectives: As an Extension Educator in Ag Economics at the

University of Nebraska-Lincoln, Groskopf provides expert insights into farm business

management.

• The Family Council Handbook: This book by Christopher J. Eckrich and Stephen

McClure offers guidance on managing family business dynamics.

• Building an Effective Farm Management System: Authored by Dick Wittman, this

guidebook provides a comprehensive framework for developing strong management

systems.

Conclusion

Establishing effective communication and management practices is crucial for the longevity and

success of family farms. By following these guidelines and incorporating structured annual

meetings, families can foster a harmonious and productive business environment. This proactive

approach not only helps in maintaining the business but also strengthens family ties and prepares

the next generation for future challenges and opportunities.

Authored by Matt Boos, Agrigrowth Consulting, and Jessica Groskopf, Extension Educator - Ag

Economics, University of Nebraska-Lincoln