Passing On the Farm: How Galen Smith Approaches Succession and Next-Gen Leadership at Coldstream Farms
A practical look at family transition, ownership structure and preparing the next gen for success
Coldstream Farms’ Galen Smith discusses what it takes to transition a dairy to the next generation, including the mindset, structure and communication that guide major decisions. He explains how his in-laws built a path for ownership, how decisions are made and how he is preparing his own sons for the future.
A Successful Transition Starts With Profitability and Passion
Galen said the first requirement for any generational transition is a viable business. “If we do not make money, no one wants to come back or can afford to come back,” he said. Just as important is the environment at home. “Are we passionate? Do we enjoy what we do on a day-to-day basis?” Without that, the next generation won’t feel drawn to return.
Open Communication and Transparency Made Ownership Possible
Galen credits his in-laws for creating clear expectations around ownership. They allowed the next generation to buy shares through profit sharing. Plus, monthly financial meetings keep the books open, ensure everyone understands the business and create a neutral setting for discussion and decision making.
Regular Dialogue Helps Prevent Misunderstandings
Through board meetings and structured conversations, the family avoids one of the most common pitfalls.
“The most response that I hear all the time is we are not talking about it,”
He added that silence often leads to unmet expectations and conflict. Transparent communication helps the Coldstream team stay aligned across generations and personalities.
A Collaborative Decision-Making Process Guides Investments
When major ideas come forward, Galen’s team follows the same process every time. They identify the problem, evaluate multiple solutions and bring in outside advisors to analyze ROI. He used the example of choosing CowScout collars.
“If we could take heat detection from 55 to 65% and increase conception rate by 3 to 5%, what does that dollar amount mean for us?” he said. The analysis showed the investment would pay off in about 1.5 years.
Preparing His Sons Means Allowing Responsibility and Failure
With his oldest son now back on the farm, Galen reflected on how to support the next generation. He values the lessons he gained from making mistakes and wants his sons to have the same room to grow. “You have to let that next generation take some responsibility, show the initiative, show the passion,” he said. Giving ownership of projects helps build confidence and drive. “If you do not, you slowly beat that desire down.”
Hear the full conversation with Galen Smith on Apple Podcasts or Spotify, and watch part 2 below.
