Family succession in modern businesses, particularly in the agricultural sector, plays a vital role in ensuring the continuity and long-term success of these enterprises.

We, as a cooperative, have been working to present this topic to our members and guide them so that this process can happen naturally and smoothly, which can often be difficult in family environments.

It is a complex process that involves several challenges and is constantly evolving. In this article, we will talk about techniques, approaches and experiences that have shaped the family succession process in the region where our organizations operate and how they can be applied successfully.

Today, we operate strongly in the northeast of São Paulo, sharing efforts between three important organizations: Coplana, Agroindustrial Cooperative, the Association of Sugarcane Suppliers of Guariba, and Sicoob Credit cooperative, all based in the city of Guariba, São Paulo.

We work on promotion, technical assistance and financial services for cooperative members and associates who work with sugar cane, peanut and soybean crops. The succession process in organizations has always happened naturally, on average, every six years, when the role of the main leader alternates.

We invest in training young leaders with a view to continuing the business and disseminating cooperative ideals for the development of the community and the region in which it operates. We named this work the Guariba Production Ecosystem, aimed at the development and growth of associates.

Recently, at Coplana, we carried out an extensive study to analyze the profile of our members and what they think in relation to the continuation of agricultural activity. When analyzing the first data collected, we came across the information that more than 60% of our members are over sixty years old.

This information brought us a warning regarding the continuity of this producer and his descendants in the activity. Given this fact, we came together to think about succession outside organizations and help our associates to begin streamlining this process. Several events related to the topic were held, as well as a course training these producers to advance in their work.

Without being different from what happens in companies, the producers brought us several challenges, which were discussed individually and in groups during the work. Some of them caught our attention, which I will take the liberty of exploring in this article, namely: transfer of management, division of income and asset transfer.

When we think about the transfer of management, which would be the beginning of the family succession itself, it is essential that the current manager accepts that this process must take place. Therefore, it is necessary to identify the successor, family member or market professional best suited to lead the company.

The choice must be based on competence, passion for the business and leadership skills, not just family hierarchy. It is also important to have a development plan for this leader. Preparing your successor is essential, and involves a training plan that may include formal education, on-the-job training and mentoring. It is beneficial for the transition to be gradual, not abrupt.

The incumbent leader should work alongside the successor for a period of time to ensure a smooth transition and allow the successor to gain experience. All of this, based heavily on open communication between all parties involved. Family and staff must understand the process and their roles in it.

Having consolidated the role of the new leadership, we will talk later about the importance of organizing the division of income. This topic is quite sensitive and often causes a point of tension in family succession.

Transparency and equity are crucial to mitigating conflicts. It is advisable to have a formal agreement that stipulates the equitable sharing of income among family members. This document must be clear and reviewed by legal and financial professionals. To this end, fair and transparent criteria, responsibilities and financial investment in the company must be adopted. Aiming at the security of the process, it is necessary to make a provision for disagreements, a mechanism that aims to resolve disputes and conflicts that may arise, related to the division of income, accompanied by periodic reviews to reflect changes in the circumstances of the company and the family.

Given the above, and talking about assets, it is important to consider how the assets will be transferred to those involved. Perhaps this is the final stage of the family succession process, considering the other phases mentioned above. It involves the transfer of assets and properties from the older to the younger generation. Tax planning is essential to plan the transfer of assets in order to minimize tax obligations.

This may involve creating appropriate ownership structures and using tax strategies. A professional and impartial assessment of these assets is important to determine their fair value, which can be used for equitable distribution among heirs, always considering measures to protect the assets, such as creating a reserve fund or defining investment policies. use of these assets. Heirs must be educated and trained on the value and management of the assets received, to ensure their preservation and growth.

Concluding, once again I draw attention to communication. Transparency is vital to align expectations and minimize conflicts. Modern companies encourage constant dialogue between all parties involved in succession. This may involve creating family agreements that clearly establish rules and responsibilities. Family succession is a complex process that requires careful planning and collaboration from all family members involved.

The transfer of management, the division of income and the transfer of assets are interconnected parts of this process. Seeking professional advice and open communication are essential to ensuring a successful succession that preserves the company's legacy and maintains harmony within the family.