Assignment task:
Paul and Mary are twins. They are 29 years old. Their father, Ned, is retiring and is leaving the farm to them. They will assume control before the next planting season. The father operated 9,000 acres as a sole proprietor for the last 10 years (prior to that he had a partnership with his Dad and brother, both are no longer involved in farming or have any ownership). Mary has been working with her father, Ned, for the last 7 years. Mary has been making more and more of the decisions and been referred to by Ned as the "farm boss". Paul has helped out at harvest but otherwise has been working in the oil fields. Both Mary and Paul are married and have 2 children each. Mary's husband, Rick, is active in the farm as labour but is not comfortable making decisions. Paul intends to move back and live in the farm yard house. He intends to be active in both labour and decision making. Paul has been having marital difficulties and is in family counseling but it is unclear whether or not the marriage will survive.
Question: In your opinion, what is the best ownership structure for this farm? What should Mary do to plan for the future? What should Paul do to plan for the future?t