Farm succession planning

Succession planning for farmers can be difficult and at times stressful, but it’s important and must be addressed. It is best to get it all planned early so that everyone knows what to expect should you retire or be forced off the farm due to injury or other circumstances. Unlike many other businesses, the farm is usually passed onto another member of the family. This can lead to problems if you have more than one child and don't have an appropriate succession plan in place.

Farm succession can create tension among siblings. The child who inherits the farm may be the only one who has any economic advantage from the family inheritance.

There are however, creative ways to share the farm among your children, which may not involve carving up the property into non viable plots of land. Seek professional advice long before you reach retirement age to ensure a smooth transition.

Sometimes rapidly changing circumstances can mean loss of the farm and this can be traumatic as the farm may have sentimental as well as economic value.

A well thought out and detailed plan is the best way to avoid the difficult and stressful time of succession when it comes. So, why not start your planning this weekend?