Health challenges create a fork in the road

The following fictional case study was created by BDO.

Connor had always been a physical force of nature. Athletic and strong, he excelled in sports in high school and played hockey in university. He took over the family dairy farm after finishing his degree and relished the physical aspects of the job – milking cows, maintaining equipment and field work. He liked to push himself and took great gratification in doing as much as he could on his own.

A one-man operation

His wife Carmen was an interior designer and wasn’t actively involved in the farm operation, so when extra help was needed, Connor would find hourly part-time helpers to get over the hump. It was a super-efficient, one-man operation and Connor liked it that way.

With no children and nearing his late fourties, Connor had found the sweet spot in cow numbers and acres, so retirement wasn’t something he thought about. He wanted to farm for as long as he could physically manage it. He fully expected to have another 20 years to farm in this way.

The onset of health issues

His back issues started with low-grade aches and pains, but over a period of about 18 months, the pain and sciatica symptoms became increasingly problematic. Over-the-counter pain medication and exercises helped a bit, but the problem got worse, and Connor was struggling to manage his daily workload.

A specialist confirmed that surgery was the only solution. With part-time help doing the chores and the land rented out for one year, Connor was sure he’d be back to normal after corrective surgery. It didn’t turn out that way, even though he pushed himself to return to his normal activities as quickly as possible.

Unwelcome changes

After six months of post-op physio with little improvement, a second, more invasive surgery was scheduled. This resulted in less pain but reduced mobility and strength. Ultimately, Connor’s doctors advised that it wasn’t realistic to expect a full recovery. He needed to make significant changes to his daily work and lifestyle.

Connor was devastated. He could see no positive way forward, and for a few months, he was in denial about the prognosis and became very negative in his outlook. He talked about selling the dairy, although he had no idea what life would look like for him without it.

Adapting to a new normal

Carmen eventually convinced him to seek counselling, where he learned that many injured or health-challenged farmers find ways to keep farming. It took some time, but eventually, Connor began to see that there was more to his love of farming than the physical side. He could still drive, and his mobility was good enough to go to the barn and monitor the cows and check on crops. He didn’t like it, but he accepted it.

Transitioning to a team approach

Connor wasn’t good at asking for help, but this would have to change. His first task was to hire full-time help for the barn and negotiate a better arrangement for cropland. Connor was able to attract an excellent young herdsman by indicating that there was potential for a fractional ownership structure after a year’s trial period. He also found solid, motivated part-time help through the local ag college. Leading a team was new to Connor but as time went on, he started to regain his confidence and optimism.

From fieldwork to management

Connor had more time to manage finances and develop a growth strategy for the dairy operation.

Some soul-searching led Connor to decide that the cows were always more of a draw than the field work, and his back issues were less impactful in the barn. He found a neighbour to sharecrop his land with an agreement that a rotation be in place to guarantee adequate feed for the dairy operation.

With some of the physical chores off the table, Connor had more time to manage finances and develop a growth strategy for the dairy operation. After a year trial period, Connor initiated a process that would enable the young herdsman to buy into the company.

Fostering growth and future-proofing

Initially, the herdsman’s annual salary would be supplemented with bonuses based on the farm’s profitability and over time, the herdsman would be able to acquire some common shares in the dairy corporation. While Connor wasn’t prepared to relinquish control any time soon, he was willing to share the company’s future growth.

A plan was also put in place to build a new barn that would allow them to ultimately double the size of the herd and install robotic milkers to maximize efficiency and reduce labour requirements. The sale of his field equipment freed up capital to assist with the construction costs.

With time, Connor came to see his back issues as a fork in the road. He could have quit, but like many farmers who face physical and mental challenges, with the proper support, he developed new management skills that allowed the business to thrive.

Planning for long-term security

While not one to look back, Connor was adamant that disability insurance be in place for his employees and business partners. While Connor had managed the process without it, he realized that disability insurance would have taken a lot of pressure off and allowed him to focus more on recovering his physical health with less worry about finances.

With new skills and a team-based approach, Connor was optimistic his farming career could extend well into the future.

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From an AgriSuccess article.