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A good succession plan should be regarded as a living document and updated whenever circumstances change or new and relevant information comes to hand.
In organising a succession plan you must ensure that there is enough time to develop the farm to support incoming members as well as provide an income for the retirees. It also must consider off-farm alternatives for children who do not wish to be involved in farming. You need to set goals for the business, individuals and the family as a whole.
By way of example, some families find that transferring management of the farm, then the livestock and plant to the younger generation is a good first step in a staged process. The next logical step could involve a formal lease of the land to the younger generation, or a terms of contract sale where the deposit paid to the parents enables them to buy a retirement house away from the farm. This is only a couple of scenarios among many. It is important to find out what best suits your family and farming circumstances.
When to start a Succession Plan
If you have been thinking about when to begin planning for succession the answer is now. It is never too early to start planning. Some farmers think they can wait until the day they are ready to retire however this is generally far too late. It takes time to develop and plan for succession to ensure that the expectations and objectives of all parties are met.
By putting a succession plan in place you are providing direction for the business, the individuals and the family for the future.
Let’s talk
Communication is the key to a good succession plan. It is very important to involve all the parties in discussions about the succession plan including mum, dad, sons, daughters and other stakeholders, whether they are involved in the farm or not. Very good communications between all parties will go a long way to making the transition a success.
You need to consider and discuss the goals and aspirations of each family member. Advice from legal and accounting professionals should be sought to ensure the plan can be implemented and the assets of the family and the business are protected. The next step is to implement the plan and ensure ongoing revision and adjustment of the plan where appropriate.
Rural Finance Succession Planning Services
There are many issues to address in establishing a succession plan. At Rural Finance we recognise that each farming business is unique and therefore each succession solution should be specific to the individual operation concerned.
With over 60 years experience working with farming families to develop their businesses, Rural Finance has the necessary experience and empathy to work with farming families to ensure that the long term potential of their business is realised into the next generation.
Our dedicated team of Succession Planning facilitators can provide your business and family with a professional and result orientated facilitation service that will work with you to deliver a tailored succession solution for your needs.
Planning for the future with Rural Finance
The first step to planning your future is to contact your local Rural Finance office. A Rural Finance Succession Planning specialist will meet with you on-farm and take you through the steps from preliminary meetings through to delivery of a final plan that has been agreed to by all stakeholders. The service is independent of our commercial lending operations and the advice you receive will be tailored to meet your objectives.
If you’re thinking Succession Planning, call us. We won’t think twice about speaking with you personally. Click here to locate your nearest Rural Finance office.
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