Latest news with #successionPlanning
Yahoo
07-07-2025
- Business
- Yahoo
Betting the farm? New Mexico's aging producers prepare for the next generation
TALPA — Carlos Arguello says he's "trying to be the ancestor that the future needs." At 69, Arguello, who grows corn, chile and other vegetables at El Tros Farm — a plot of about 10 acres near Talpa, a historic community southeast of Taos, where his family has lived and worked since the mid-1960s — is making preparations now to ensure he can pass the farm on to his grandchildren without burdening them with unwanted responsibilities. He's nearly completed a succession plan that accomplishes the goal. He plans to use a limited liability company that combines the property's multiple income streams, ranging from garden and livestock revenue to on-farm rental properties, including an agritourism vacation rental. The question on Arguello's mind: "How do I give them the opportunity to hold on to it over generations in a manner that doesn't become a financial burden on them and it doesn't fall into disrepair?" Data from the U.S. Department of Agriculture's latest Census of Agriculture shows the average age of New Mexico farmers is nearly 61, two years older than the national average. It's one of a few workforce-related challenges facing the state's agricultural sector — including its crop of distinctive Hatch green chile — as farmers bemoan a shrinking local labor force and increasingly rely on foreign workers. While some small farms, like Arguello's, have developed innovative ways to encourage the next generation to maintain farming and ranching traditions, others struggle to ensure the future of their enterprises. Cultivating New Mexico's agricultural industry isn't just about continuing family traditions, said Manny Encinias, executive director of the Santa Fe Farmers Market Institute and a fifth-generation cattle rancher. It's about keeping people fed, particularly as data from the University of New Mexico's Geospatial and Population Studies shows many Northern New Mexico communities — including those in Santa Fe, Sandoval, Los Alamos and Taos counties — are expected to grow by 2040. 'The world population continues to grow. That, to me, is the biggest reason why we need more people in agriculture,' Encinias said. 070125_GC_TaosFarmers03rgb.jpg Ari Thomas, 5, granddaughter of farmer Carlos Arguello, uses a pitchfork to move hay to feed the horses at her grandfather's farm near Talpa last week. Thomas, visiting her grandfather from Phoenix, visits a couple times a year and is learning the skills to maintain a farm. Arguello, then, is looking to the future. "We all talk about ancestors, and we think about the past, the past, the past," he said. "We learn from those lessons. We carry that tradition; we carry the querencia. But now, how do we pay it forward?" Tough getting started Marisol Olivas bucks the trend. Born and raised in Belen, the 23-year-old said she fell in love with agriculture by participating in 4-H and raising livestock with her family. After graduating from New Mexico State University with a bachelor's degree in agricultural economics and business in 2024, she's pursuing a master's degree focused on agribusiness at the university, while serving as a student regent. 070125_GC_TaosFarmers04rgb.jpg Carlos Arguello looks down at maturing green chile peppers while doing a walk last week through his farm near Talpa where he grows corn, chile and other vegetables. There are still some young farmers out there "doing their part to feed the world," Olivas said. However, she added, "When I look at it, when I see it, there's going to be risk in everything that you do. … Am I going to take that risk to remain in agriculture, and is it going to be financially viable for me?" Agriculture can be a particularly risky — and tough to access — business, said Jay Lillywhite, associate dean of NMSU's College of Agricultural, Consumer, and Environmental Sciences and director of the Agricultural Experiment Station. At least in part, farmers are getting older because everybody's getting older, Lillywhite said. New Mexico's population over 65 is growing rapidly as the baby boomer generation ages. But there are also parts of agriculture that make it an especially tough industry for young people to break into. It's a "capital-intensive business," Lillywhite said. Farmland can cost $40,000 to $50,000 per acre. A new tractor will run a few hundred thousand dollars, with specialty equipment — used for tasks like harvesting pecans — sold for high prices, too. 070125_GC_TaosFarmers05rgb.jpg Robert Martinez Sr. breaks up pieces of hay to feed his bulls at his barn near Taos on June 19. For a young person trying to get started in farming or ranching, Lillywhite said, those startup costs are "a big hurdle to try to get over." Meanwhile, cash flow is often limited, he added. Farmers have to wait months for seeds and livestock to mature while paying for fertilizer, feed and, in some cases, pesticides. On top of those financial challenges, there are the physical demands of farming and ranching: "It's outdoors. You're in the weather. You're dealing with all that, as well," Lillywhite said. The results of those economic factors show up in the Department of Agriculture's latest census, which found just 2,666 of the more than 37,000 agricultural producers across New Mexico — a little over 7% — are 35 or younger. Even among new and beginning producers, the census shows, the average age is nearly 50. "There's the old adage that you either marry into it or you inherit it," Lillywhite said of farming and ranching. "There's probably some truth to that." 070125_GC_TaosFarmers06rgb.jpg Carlos Arguello walks last week through his fields at El Tros Farm — a plot of about 10 acres near Talpa. Thinning profit margins As profits shrink, farmers and ranchers sometimes have to take on second jobs to make ends meet. It's something Robert Martinez Jr. sees often: Ranchers and farmers in Taos, where his family has been ranching for generations, need day jobs to subsidize their agriculture work and afford Taos' high cost of living. It's one of the reasons he thinks the younger generations are turning away from their parents' land. When Martinez attends agricultural meetings in Taos, he's often the youngest in the room. 'And I'm 42 years old,' he said. 070125_GC_TaosFarmers02rgb.jpg Robert Martinez Sr. looks out at his cattle grazing in the fields near his barn near Taos on June 19. Robert Martinez Sr.'s son Robert Martinez Jr. is picking up the reins and will start assuming more responsibilities at the families cattle ranch. "Our main focus now is, honestly, to break even," Martinez Jr. said. "Luckily enough, we have other livelihoods which can sustain families and those types of things." He said the family aims to "set up our children for — hopefully — doing the same thing." Martinez has ranching in his blood, but he lives about two hours south of the family ranch. He also has a full-time job at a company that manufactures medical research instruments. The company builds devices that can print the genetic material RNA with the goal of using individuals' own RNA in targeted medical treatments. Whenever they can, he and his family head north to help with the cattle ranch. "Our main focus now is, honestly, to break even," Martinez said. "Luckily enough, we have other livelihoods which can sustain families and those types of things." He said the family aims to "set up our children for — hopefully — doing the same thing." His own father, Robert Martinez Sr., recently retired from a full-time job as an engineer at Los Alamos National Laboratory. But Martinez Jr. thinks his father is busier than ever. The elder Martinez wants his grandsons to stay at the ranch for the summer. "I truly believe you build men through hard work," Martinez Sr. said. "And ranching is perfect." 070125_GC_TaosFarmers08rgb.jpg Carlos Arguello moves his horse back into a pen last week after having its hooves trimmed at El Tros Farm near Talpa. He added, "I think my daughter and my daughter-in-law are a little fearful what I would do to them, which is work hard — and we would play hard, we'd all go fishing, which I don't have time for now." And it is hard work, often with little financial reward. The elder Martinez says with limited meatpacking options in the region, an increasing amount of the revenue ends up going to the packer rather than the rancher, and he has to book months in advance. To combat it, he's been trying to sell more meat directly to consumers, which he said can insulate the business from volatile market prices and raise the overall revenue. But the whims of the market aren't the only challenge. He recalls periods of drought, which can and have pinched profits. "We were selling cows at 25 cents on the dollar," Martinez Sr. said. "And we had to because of the drought." But the rains always come, Martinez Sr. noted. He recalled his own father telling him, "Dios se tarda, pero nunca olvida — God might tarry, but he never forgets." "Man, I'm still trying to please him," Martinez Sr. said. 070125_GC_TaosFarmers07rgb.jpg Carlos Arguello takes a step last week over a acequia that he uses to irrigate his fields near Talpa. Preparing for the transition A universal truth has popped up in Olivas' research on agricultural succession planning: "When we're dealing with land and family and money, things can get very, very difficult," she said. While big businesses often develop strategic plans for future transitions, that's not always the case for family farmers, said Chadelle "Chaddy" Robinson, an associate professor in the Agricultural Economics and Agricultural Business Department at NMSU. Succession planning requires farmers and ranchers to ask tough questions, Robinson said: "At what point does a 60-something-year-old want to hand it off to their family or transition it to somebody else that wants to go into agriculture?" The process can involve setting reasonable goals, gathering financial and other technical information, seeking help from accountants and attorneys, and having frank discussions with family members. 070125_GC_TaosFarmers10rgb.jpg One of Robert Martinez Sr.'s new calves eats grass in his fields on June 19. There is help available for farmers and ranchers looking to make succession plans. NMSU and its extension offices provide trainings and numerous online resources, including succession planning checklists, and dos and don'ts. The New Mexico Farm and Ranch Management Program, also housed at NMSU, is working to develop a financial benchmarking program for agricultural producers, in addition to leading Annie's Project in New Mexico, a training program to support women farmers, said Frannie Miller, an assistant professor in the university's Agricultural Economics and Agricultural Business Department. Olivas is working to improve resources in New Mexico for farm succession and transition planning. She's been interviewing farm succession specialists in every state to learn the most effective ways to help farmers, such as putting on workshops, furnishing goal-setting and planning workbooks, or providing mediation to smooth out interpersonal challenges that can arise during the process. That research, which will become the foundation for Olivas' master's thesis, will identity best practices to help New Mexico farmers prepare for the future. Eventually, Robinson said, the hope is to secure legislative funding to hire succession specialists to put Olivas' findings into action across the state. "The main generation has worked their whole life to build their business, to build their operation, and so getting them ready to transfer over that management to the next successor is a huge deal," Olivas said. 070125_GC_TaosFarmers11rgb.jpg Ari Thomas, 5, climbs over a gate last week to partake in one of her favorite actives — climbing the hay bales — at her grandfather's farm, El Tros Farm, near Talpa. Preserving 'sacred culture' Arguello has put a lot of work into preparing El Tros Farm for the next generation. He's taken the workshops, attended the webinars and consulted with the accountants and lawyers — all while making plans to diversify the farm's revenue streams through rentals. Arguello said he's also talked to his older set of grandchildren, ages 24, 21 and 16, about what he anticipates their roles on the farm will be. Well-versed in finance tracking, the eldest will serve as treasurer. The more mechanically minded middle grandchild will be in charge of farm equipment. The youngest, an animal lover, will manage the livestock. With luck, the land could remain in the family for another century or more, Arguello said. "It's my way of trying to preserve the ag culture, the sacred culture that's been here for generations," he said. When his grandkids and other neighborhood children join in the acequia's limpia, Arguello makes a point to remind them of that history. Together, they clean out the ditch, which has been sustaining the farm with water from the Rio Chiquito since the late 1600s. "How many people do you think were walking down this ditch bank carrying a shovel?" Arguello asks. "You're on top of a lot of footsteps."
Yahoo
05-07-2025
- Business
- Yahoo
Executive Search Firm: CEO Turnover To Pick Up in Asia
Esther Colwill, APAC President at management consulting firm Korn Ferry, says her team has been having more leadership development and succession conversations with companies in Asia. She also discusses how geopolitics and trade uncertainties are impacting companies' talent searches. She speaks with David Ingles and Annabelle Droulers on "Bloomberg: The China Show." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
04-07-2025
- Business
- Bloomberg
Executive Search Firm: CEO Turnover To Pick Up in Asia
Esther Colwill, APAC President at management consulting firm Korn Ferry, says her team has been having more leadership development and succession conversations with companies in Asia. She also discusses how geopolitics and trade uncertainties are impacting companies' talent searches. She speaks with David Ingles and Annabelle Droulers on "Bloomberg: The China Show." (Source: Bloomberg)
Associated Press
04-07-2025
- Business
- Associated Press
Planning for Succession and Inheritance Taxes in Spain for Expatriate Residents
07/03/2025, Paphos 8035 // PRODIGY: Feature Story // Spain remains one of the most popular destinations for UK expatriates, with an estimated 275,000 British nationals currently living there and a consistent number of families, professionals, and retirees relocating each year. As with any overseas move, expatriates must consider the long-term financial implications of a change in tax residency. This includes those who have been resident in Spain for some time but have yet to review their estate plans and the significant tax burdens that beneficiaries may be exposed to. Chase Buchanan Private Wealth Management, the global financial advisers and wealth managers with a long-established presence in Spain and across Europe, have put together a concise guide to explain why succession planning is so important and why it matters for expats of any age. An Overview of Succession Planning for Expats Living in Spain Succession planning is a key aspect of financial management for every family, but it is also something we often find overlooked, particularly for expatriates who aren't yet approaching retirement age. However, putting plans in place sooner rather than later may be key to long-term generational wealth protection. In brief, succession planning isn't solely about calculating inheritance tax liabilities. It is about who you would like to inherit your assets and wealth in all jurisdictions, and implementing strategies to ensure you can pass on wealth to your selected beneficiaries tax-efficiently. This can be a complex area of financial planning, given that when we start putting together succession plans, we need to consider a broad range of assets and circumstances, from property portfolios and investments to life insurance products and assets. Without a plan, some families find out too late that they have sacrificed control over nominating heirs or are subject to significant tax liabilities they had not planned for. This is wholly relevant for expats in Spain since forced heirship rules apply, something many UK nationals are unfamiliar with, but a set of regulations common in most European countries. These rules set out which direct relatives have a protected inheritance entitlement and also set out specific allowances. Understanding Inheritance Tax Rules and Rates for Spanish Tax Residents As in the UK, Spanish tax residents are usually subject to inheritance tax on their worldwide assets and wealth. That said, complications can arise where the estate owner has any ambiguity about their tax residency position or could be considered a tax resident in two places. Assuming an expat lives primarily or only in Spain, the Spanish inheritance tax rates will apply. The tax is payable by the beneficiary, regardless of whether or not they are also Spanish residents. Double tax treaties may apply, and professional advice is essential to ensure these are applied and claimed correctly. For instance, if the adult child of a Spanish tax resident inherits a property located in the UK, there may be scenarios where this is considered subject to both UK and Spanish tax. In this case, the treaties mean the largest liability will usually 'cancel out' the other to avoid a situation where the same inheritance could be taxed twice. Another complication is that inheritance tax rates vary within Spain. Each localised municipality has autonomy over the allowances and rates it applies. Generally, inheritance tax rates in Spain start at 7.65% for assets valued up to €7,993, with a top rate of 34% on inherited assets worth €797,555 or more. However, regions like Andalucia, Madrid, Murcia, the Canary Islands, and the Balearics, to name just a few, have allowances of as high as 99.9%, which all but eliminate inheritance taxes, depending on the category the recipient falls into, determined by their relationship to the deceased. Familial Inheritance Tax Allowances in Spain While noting that these do not apply in all Spanish jurisdictions, the most generous tax allowances apply to heirs in groups one to three. Group I includes children under 21, Group II applies to adult children, spouses, and parents, and Group III includes siblings, aunts or uncles, cousins, stepchildren, nephews and nieces, and in-laws. Group IV applies to all other beneficiaries, including unmarried partners in some municipalities. This excludes those within a region governed by rules that mean partners are treated the same way for tax purposes as spouses, including Valenciana and Andalucía. This means that the inheritance tax liabilities associated with your estate will depend on who you would like to receive your assets, where you live, the location of your assets, and how your wishes align with the forced heirship rules we mentioned previously. Spanish succession law applies forced heirship rules that generally state that children have a protected entitlement to receive two-thirds of the estate. This means that without advance planning, it might be impossible for a tax resident to leave the entirety of their estate to a spouse. Thus, consulting an experienced succession planning adviser who can factor in all of these considerations is essential, working with a professional who can advise if there are contrasts between the forced heirship rules and how you'd like your estate to be distributed. Why Strategic Succession Planning is Key for Spanish Expatriates Understanding the varied allowances, exemptions, tax liabilities, and the treatment of estates owned by a Spanish tax resident and inherited by an heir outside of Spain is potentially very complex. This is why detailed succession planning and accurate, up-to-date wills that are legally valid in Spain are essential aspects of financial planning. It's also worth pointing out that, under the recently revised residency rules introduced by the UK government, expatriates who divide their time between Spain and the UK or who haven't lived in Spain permanently for at least ten years are more likely to be exposed to challenges around their exposure to UK inheritance tax. Tailored succession planning isn't only focused on calculating accurate inheritance tax obligations, factoring these into finances, and deciding how best to manage an estate; it's also about gaining clarity over long-term financial tax burdens and making informed decisions without time pressures, which can pay dividends in the years to come. Read more about Chase Buchanan- Chase Buchanan Wealth Management Achieves Status as the Only Global Expat-Focused CII International Professional Partner About Chase Buchanan Private Wealth Management Chase Buchanan is a highly regulated wealth management company that specialises in providing global finance solutions for those with a global lifestyle. We are global financial advisers, supporting expatriates around the world from our regulated European headquarters, and local offices across Belgium, Canada, Canary Islands, Cyprus, France, Malta, Portugal, Spain, UK and the Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15. Source published by Submit Press Release >> Planning for Succession and Inheritance Taxes in Spain for Expatriate Residents
Forbes
12-06-2025
- Business
- Forbes
Employee Ownership Is Transforming Business Sustainability
In today's dynamic business landscape, succession planning is no longer optional but a strategic imperative. As private equity investments surge and talent shortages persist, traditional exit strategies such as mergers or acquisitions often come with significant disruption. Many businesses, particularly in professional services, face the challenge of preserving their culture, maintaining service quality, and sustaining growth during leadership transitions. Against this backdrop, Employee Stock Ownership Plans (ESOPs) offer a compelling, often underutilized alternative. Our firm's decision to transition to an ESOP has provided stability, independence, and a model for sustainable success that directly benefits clients, employees, and communities. Lou Grassi Addressing Grassi's Employee-Owners at the Firm's Annual Gathering in 2024 Unlike traditional sales to external entities, ESOPs transfer ownership to employees over time, aligning personal success with the business's long-term performance. This model significantly enhances employee engagement, as team members directly share in the company's growth and profitability. At our firm, adopting an ESOP structure led to measurable increases in productivity and lower turnover rates. The employee-ownership mindset ensures our staff are not merely employees but invested stakeholders, deeply committed to the success of our clients and the organization. Having advised approximately 35 ESOP companies, we have seen that employee-owned businesses consistently outperform their peers on key metrics such as retention, profitability, and resilience. One of the most significant challenges in any succession plan is preserving a company's operational continuity and core values. ESOPs offer a structured, gradual transition that minimizes disruption, preserves institutional knowledge, and maintains client relationships. Our decision to implement an ESOP stemmed from our unwavering commitment to independence, culture, and consistent client service. In contrast to private equity models, which often involve ownership changes every few years, ESOPs provide enduring stability. For our clients, this means continuity of service, depth of expertise, and a long-term partnership with advisors who are genuinely invested in their success. The financial structure of an ESOP provides distinct advantages to sellers and employees. Sellers can potentially defer capital gains taxes by reinvesting proceeds into qualified replacement property, a benefit unavailable in most private equity transactions. The business can deduct contributions made to fund the ESOP's debt repayment, enhancing overall cash flow and strengthening balance sheets. These savings create opportunities for reinvestment into technology, talent development, and client service enhancements. For employees, participation in an ESOP typically results in significantly higher retirement savings compared to peers in non-ESOP firms. In our case, the financial flexibility created by the ESOP has enabled strategic investments that keep us competitive and client-focused. Amid ongoing challenges in talent acquisition—highlighted by a 7.4% decline in accounting graduates reported by the AICPA—the ESOP model has become a powerful recruitment and retention tool. Offering meaningful ownership stakes without requiring financial buy-ins gives employees a direct path to wealth-building and career advancement. In our experience, the tangible sense of ownership has fostered a culture of collaboration, accountability, and innovation. Employee-owners think and act like business partners, resulting in higher client satisfaction, reduced turnover, and stronger team cohesion. For organizations facing generational talent gaps, ESOPs provide a compelling advantage in the competition for top performers. Transitioning to an ESOP does not dilute leadership effectiveness; it enhances it by aligning employee interests with organizational goals—ESOPs foster environments of shared responsibility and strategic focus. Our leadership team has been able to maintain complete operational control while benefiting from a workforce that is highly engaged in driving the firm's growth. The ESOP structure supports long-term strategic planning over short-term profit-taking, avoiding the common pitfalls seen in private equity-backed models. Rather than optimizing for quarterly returns, we can invest with a multi-year horizon, ensuring that client service quality and firm values remain paramount. While ESOPs present significant benefits, successful implementation requires careful planning, feasibility analysis, and experienced advisory support. Establishing an ESOP involves regulatory compliance, valuation considerations, and administrative responsibilities that must be managed thoughtfully. At our firm, meticulous planning was critical to our success—from conducting a detailed feasibility study to structuring the right alternative practice framework to separate audit and advisory services. For C-suite leaders considering this path, early engagement with experienced ESOP advisors and a commitment to transparent internal communication is essential to ensuring a smooth transition and maximizing long-term value. As firms navigate the evolving business environment—marked by heightened private equity activity, shifting workforce expectations, and increasing competition—succession planning must be about more than just ownership transfer. It must be about sustaining the organization's mission, values, and impact for future generations. ESOPs offer a proven, strategic alternative that simultaneously addresses financial, cultural, and operational objectives. Our experience reinforces that employee ownership preserves and strengthens businesses, ensuring they remain vibrant, client-centered, and growth-oriented. For C-suite leaders evaluating their succession options, ESOPs represent more than a transaction; they represent a transformational opportunity to build lasting value for all stakeholders. By investing in employees as owners, companies can secure their legacy, drive superior performance, and contribute to stronger communities in the decades to come.
