Top Tips for Successful Farm Succession

Farming is a way of life, so it can be difficult to imagine handing over the reins, exiting from it altogether or selling a particular farming asset.

For many, planning for rural farm succession doesn’t come easily, forcing you to think about the unexpected and planning ahead for what you want to happen. Here are some of my top tips to having a robust rural succession plan.

1. Consider the ‘what-ifs’

While you’re busy living your day-to-day life, thinking about the unimaginable ‘what if’ scenarios of life can be difficult. The 'what-ifs' include death, separation and incapacity. Working through these is key to having a robust succession plan.

2. Get everyone in the same room

Having a good professional team, ideally your banker, your accountant and your lawyer, surrounding you helps you to map out your options and shape your plan.

3. Every plan is different

There is no one size fits all solution, or one single approach. It all depends on the assets, the desired outcomes and personalities involved.

4. Succession is a commitment

The process takes time to get it right, and it’s a commitment in both time and energy. Some people take longer to get onto the same page or come around to a succession discussion, and emotions can run high at times. Some are happy to take risks, and others want to mitigate every risk possible.

5. Consider your asset structures

Good succession requires consideration of all the structures available such as partnerships, companies and trusts. However the farming business is being operated, documentation also needs careful consideration, including Wills, Enduring Powers of Attorney, a Shareholder Agreement and a Partnership Agreement.

The biggest thing I can’t stress enough is the need for a well documented plan. A lawyer is crucial to that. Contact the Gallie Miles team. We are happy to have an initial meeting with you, and you can then consider if you’d like to get started on your succession plan with our help.