Succession Planning

Hanging on the walls of the Geauga County Extension Office are photographs of the Geauga County Maple Hall of Fame inductees.  Many are producers who have passed on.  The sad truth is that very few of those sugarbushes are still operating today.  There are stories to tell but no one to tell them. The maple heritage is slowly being lost.  What will happen to your maple sugaring operation when you are no longer able to run the operation?  For many the answer is simple – one of my family members is waiting in the wings to take over.  For others it is far more complex.  Will the operation be viable enough for someone outside the family to take over?  Whoever steps in to fill empty shoes, is there someone to guide that person along the way?  Succession planning can help smooth the road for a successful transition.

Economic viability is one of the biggest challenges a sugaring operator faces.  Today, the economics of agricultural production seems to be working against the small producer.  At one time, this was a statement that really did not apply to maple production.  Maple seemed to be isolated from the production and marketing pressures of other crops.  It was highly specialized and for the most part produced on a small scale of family farms.  Today, even though the retail price and the demand for maple products is on the upswing, it is getting increasingly difficult to cover expenses and make a profit.

My concern, is for the new producer, trying to break into the business.  When you look at the risks involved in running a maple operation, they are increasing with every passing year.  Based on UVM Benchmark Studies, the best chance for success starting out should be with 5000 taps and up.  The average investment for a 5000-tap operation is 36.00 per tap (UVM Benchmark study, 2020); that includes tubing and processing equipment and the sugarhouse.  If you assume the operator has done his homework, and his operation is running efficiently, the average yield per tap will be approximately 1/2 gallon of syrup per tap on a good year.  Unfortunately, not every year is a good year.  Again, with increasing input costs, can a new producer survive in today’s economy?

The maple industry, just like the rest of agriculture, is aging.  Older agricultural producers are dropping out because they can no longer run the business and no one in their family who wants to take over.  Farms are rented or sold to larger corporate farming operations.  One thing I have noticed that is different in maple syrup production – there are a significant number of young folks who have a strong desire to make syrup, especially if given an opportunity to work into an existing operation.  Assuming these connections can be made, the question the existing owner needs to ask is this – is it better to give up partial control today or watch the business disappear forever tomorrow?  Sooner or later, it will be time to let the next generation take over and pass the operation on to someone who will value it as much as you have.  I know young producers who have done well with the transitional challenges of stepping into an existing operation; however, I can also point to examples where the spark fizzled and the operation’s fate was only temporarily delayed.

Again, I would reiterate that very few sugarmakers want to deal with or accept the reality of transition, but it is inevitable as the clock winds.  Ask yourself these questions?  How long do I want to continue sugaring?  How long can I continue sugaring?  Am I setting up whoever is next in line for success?  Am I making a good reputation for small and local producers?  What can I do to get young producers involved in maple sugaring?  Do I have a plan for what’s next?  Is my plan in writing or just in my head?  If your desire is to keep your sugarbush operating, now is the time to sit down and plan a transition to the next generation and cement your legacy.

For more information on Succession Planning, contact your local Extension office to learn more or look for an OSU Succession Planning Workshop near you.