I. General Information

1. Course Title:
Directed Studies - Farm Business Family Transition

2. Course Prefix & Number:
FBMA 2940

3. Course Credits and Contact Hours:

Credits: 2

4. Course Description:

This course provides the opportunity for the student to study the many aspects of farm business and/or family transition which occur in the typical farm business.

5. Placement Tests Required:

6. Prerequisite Courses:

There are no prerequisites for this course.

9. Co-requisite Courses:

There are no corequisites for this course.

II. Transfer and Articulation

III. Course Purpose

1. Program-Applicable Courses – This course is required for the following program(s):

Advanced Farm Business Management, Certificate

IV. Learning Outcomes

1. College-Wide Outcomes

College-Wide Outcomes/Competencies	Students will be able to:
Demonstrate interpersonal communication skills	Create a written transition plan.
Analyze and follow a sequence of operations	Identify strengths and weaknesses of transition plan.
Work as a team member to achieve shared goals	Work effectively with other family members to develop a transition plan.

2. Course Specific Outcomes - Students will be able to achieve the following measurable goals upon completion of the course:

• _{Develop a plan to legally transfer a farm or business;}
• _{Understand the tax implications of different types of farm transfers;}
• _{Communicate farm future plans between buyer and seller;}
• _{Prepare a balance sheet to develop values used in the planning process;}
• _{Determine the needs for retirement incomes and any gifting of the business; and}
• _{Determine the best business structure for the transition (LLC, corporation, sole proprietor).}

V. Topical Outline

Listed below are major areas of content typically covered in this course.

1. Lecture Sessions

1. Outline the preferred future of the farming operation as it relates to family members
• List items that owners/operators desire for the future of the family business
• Outline the avenues of transfer and the advantages/disadvantages of each avenue
• Discuss with family members their desires for the future of the operation
• List the impacts of taking no action as it relates to transition planning
2. Develop a comprehensive transition plan for the family business
• Review balance sheet to assist in planning transition
• Perform a cash analysis to explore options for transition (gifting, retirement income, etc)
• Utilize the proper business structure to set in motion the transition