Government Funding for Success Planning

One major challenge that faces almost every farm family at some point in time is that of succession. How can we make sure the farm stays in the family? How can we allow our parents to retire in comfort? How can we expand the farm to meet the needs of future generations of our family? Do we have all of the skills to take the farm to the next level? What is fair to those who have left the farm? How can our family make business decisions while we cope with the emotional challenges of family life? How do we prepare a succession plan? Can we afford it?

The Government of Canada, along with the provincial and territorial governments, has committed $5.2 billion to the Agricultural Policy Framework to strengthen our agriculture and agri-food industries. One program of the Renewal element of the APF is the Specialized Business Planning Services. The SBPS, delivered through Farm Business Advisory Services, provides producers with financial support to help with farm business planning and farm succession planning. The program will provide up to 50% of a consultant's eligible costs for the preparation of a succession or business plan. The maximum funding available is $8,000 for an individual applicant, and a maximum of $25,000 for four or more participants.

In order to be eligible for funding a producer must submit an application to SBPS along with a succession or business planning proposal from a consultant having expertise in these areas. The consultant must be a member in good standing of a recognized professional organization, and have experience in preparing business plans or succession plans. As evidence of his or her experience the consultant must provide a professional resume and at least 2 references from previous clients.

VMSW has these qualifications.

The Specialized Business Planning Services program recognizes that a good succession or business plan must be comprehensive. It also recognizes that the planning process requires the involvement of highly skilled people with experience. To make sure the program meets their objectives, SBPS has provided detailed Minimum Requirements for succession or business plans they will fund.

A succession plan, for example, must include such elements as:

• a description of the family's goals and objectives (personal and farm)

• a retirement plan

• training plan for successor children

• farm business plan

• operating plan

• management and labour transfer plan

• ownership transfer plan

• implementation time table

• family communications plan

• contingency plans

Each of these elements must be included in the succession plan in order for the farm to qualify for funding. Agriculture and Agri-Food Canada will first review the proposal to approve the funding, and must then approve the final plan before releasing the funding.

Agriculture and Agri-Food Canada has proven through its research that family farming operations have the best chance for long term success when they follow a strategy of comprehensive business planning. AAFC has such a strong belief in this premise that they are willing to contribute up to $8,000 per family for succession and business plan development.

If you would like more information on the Specialized Business Planning Services program please contact your VMSW partner, or Greg Bruce in our Woodstock office.

Back to Top   Back to Resources Page