Bob and Jane Pingrey, of Silver Springs, N.Y., have been ready to transfer their dairy farm business to their sons for years. But not because they are eager to stop milking cows. Instead, it's because they were able to instill three important guidelines in their children. By teaching these principles, the Pingreys increased their chances of successfully transferring the business between generations.
     Those guidelines are:

• Do it right the first time.
• Keep a healthy dose of "give and take" in every situation.
• Run a profitable business.

Mentoring style

About his father's mentoring style, Don says, "Dad always wanted jobs done correctly, and the kids in the family appreciated that lesson as early as high school, maybe even earlier." Bob agrees, and adds that he didn't push his children to work on the farm, but if they accepted a job he expected them to complete the entire job and to do it well.

To illustrate how well the Pingrey kids absorbed this lesson, Bob tells a story about a one-day vacation that he and his wife took many years ago. They were hesitant to leave the farm that day, because haylage still needed to be chopped. But their three high school-aged sons told them to go on their trip, and the parents decided they could trust their sons to take over for the day.

When the parents returned home that night, the boys had chopped the haylage and also put the machinery away. Bob and Jane are still very proud of their sons' early accomplishment. "That was the beginning for us," Bob says, "the moment we realized our sons were ready for more responsibility, and we were willing to give it to them."

Bob also instilled a sense of give and take in his sons through his parenting and management style. He says, "In our business, no one person dictates the rules, and no one has his way all the time." Don added, "Dad, Dan and I talk to each other all the time. We bounce new ideas around until we feel confident that they fit our management style. Of course we have disagreements, but if one of us doesn't like a decision, then he puts the problem on the table for discussion."

Farm Credit of Western New York loan officer Paul Webster adds, "Bob respects his sons' abilities and recognizes their talents, which creates a comfortable working environment. Plus the Pingreys think alike, which also helps both generations work together. And they run profitable businesses, which will help them continue their business for another generation."

Two parents ready to teach management principles. Sons ready to learn and work hard on their own. A willingness by both generations to recognize each other's unique talents. And a profitable business. That's the Pingrey recipe for transferring their business to the next generation.

Accomplishing business goals

The Pingreys' goal for their business transfer was to create a situation where Don and Dan could afford to buy the farm and Bob and Jane could afford to retire. The following explains how they are accomplishing those goals:

	Bob and Jane bought Pingrey Farm 1 in Strykersville, N.Y. in 1963 and started to farm with just 27 cows. In 1987, they bought Pingrey Farm 2 in Silver Springs, N.Y. They started to transition the farm in 1993, when Bob formed two separate partnerships: One with his son, Dan, on Pingrey Farm 1 and a separate partnership with his son, Don, on Pingrey Farm 2.
	Through these partnership arrangements, Bob was able to sell Pingrey Farm 1 to Dan and plans to one day sell Pingrey Farm 2 to Don. He wanted both sales at below market value so the sons could afford to buy their own farm, continue to farm it and also pay for it in installments over a number of years. The income from the sales will help finance Bob and Jane's retirement.
	The transfers are moving along smoothly. So far, Don and Bob are 50-50 partners in Pingrey Farm 2, with Don responsible for day-today operations. And Dan owns Pingrey Farm 1, and is making regular monthly payments to his father for the purchase.

Dan said, "Our transfer was smooth because it was gradual. We started by forming a partnership back in 1993, and my wife, Patty, and I just bought the farm and the remainder of the cattle and machinery last year.

"Of course, we had a few bumps in the road, but that's natural. A lot of the process is about relationships, finding a balance and respecting how each other copes with change. I've owned the farm for a year, but I still talk to Dad every day. Of course, I don't need his approval anymore, but I still seek his opinion because I respect his skills as a businessperson."