Don’t Ignore the CEO Gap

The USDA National Agricultural Statistics Service (NASS) reports the average age of U.S. farm producers was 58.1 years in 2022 and that number continues to climb each time they conduct surveys. At MIXTEC Group, an executive search firm serving fresh produce, we believe the average age of owner-operators in our industry is higher.

In an industry accustomed to leadership continuity, the aging of senior leadership presents a major risk. Family-owned fresh produce enterprises are especially vulnerable: Founders or longtime CEOs are nearing retirement, the next generation may not be ready — or willing — to step in, and few family businesses have formal succession plans or deep benches of leadership talent to draw from. In short, the CEO handoff could be the weak link in tomorrow’s produce companies.

Given that family farms account for more than 95% of U.S. farms, CEO transition presents a significant risk for our industry that is not talked about often enough, as it is overshadowed by more urgent issues, including water, labor and tariffs. However, the potential crisis for companies may be coming sooner than they think.

The CEO handoff could be the weak link in tomorrow’s produce companies

Over the past decade, retirement has driven 75% of the CEO search assignments MIXTEC Group has conducted — not a typo. One only needs to look at our own trade associations, IFPA, Western Growers Association, and the Florida Fruit and Vegetable Association, among many others — to see the trend firsthand. These high-profile examples are merely the tip of the iceberg; growers/shippers, processors, and distributors make up the bulk of movement beneath the surface.

WHY IT MATTERS IN FRESH PRODUCE

Family-owned companies rely on a mix of enterprise-specific know-how — crop planning, seasonality, post-harvest handling and customer relationships — and executive leadership in strategy, supply chain and compliance. When a long-serving CEO exits, the company doesn’t just lose a titleholder, it risks losing institutional knowledge that is nuanced and vital. While the industry is becoming more data-driven, certain business decisions still depend on human experience — assets that can walk out the door at retirement.

Here are some of the key challenges I see:

• Many firms remain led by founders or first-generation CEOs, making transitions emotionally and operationally complex.
• Younger family members may pursue careers outside agriculture or feel unprepared for the multifaceted demands.
• Unlike large, publicly traded corporations, produce firms often lack deep benches of non-family executives.
• Thin or informal succession plans can create risks.\
• CONSEQUENCES OF THE CEO GAP
  Produce is unforgiving: Narrow harvest windows, perishable inventory, weather volatility, and buyer demands leave no margin for leadership misalignment. When a CEO exits without planning, the consequences can cascade:
• Stalled growth or strategy paralysis while new leadership finds its footing.
• Culture can be adversely affected.
• Loss of customer or supplier confidence as disruptions ripple through operations.
• Governance erosion, weakening oversight of quality, food safety, labor and compliance.
  With consolidation, globalization, labor and climate pressures, leadership gaps threaten both competitiveness and resilience.

CLOSING THE GAP

Family-owned produce businesses should treat CEO succession as a strategic imperative, not just a good idea. Steps include:

1. Start early and document the plan. Identify successors, set timelines, define roles, and delegate responsibilities gradually.
2. Professionalize governance. Engage independent directors or non-family executives, establish performance metrics, and invest capital in leadership development. (If you take nothing else from this article, take this.)
3. Build a talent pipeline. Family successors need structured training in finance, operations, supply chain, and strategic thinking.
4. Communicate and align. Keep family, management, board, key customers, and suppliers informed about succession path, expectations, and timelines to reduce conflict and uncertainty.
5. Plan for the unexpected. Illness, sudden departures, or external crises can derail even the best intentions.

A TIMELY IMPERATIVE

As Baby Boomers retire, the leadership pipeline must be replenished. Fortunately, the industry offers strong apprentice and leadership programs for all levels through national, regional, and commodity-specific trade associations. More than 35 U.S. universities host agricultural leadership programs. Additionally, there are countless programs outside of the industry in leadership, management and specific functional training.

The time to engage these programs is now. In fresh produce, timing, freshness, and relationships always count; leadership continuity should not be optional. With the average producer approaching or in their 60s, and few formal succession plans in place, the window for proactive transition is narrowing fast.

Those who act today to close the CEO gap will define tomorrow’s produce industry — stronger, smarter, and built to last.

Jerry Butt is president and chief executive of the Mixtec Group, an executive search firm based in La Crescenta, CA.