It shows that farmers know there is a problem, yet really don’t know how and when to tackle it, and who they can trust to help them through what can be a challenging and testing emotional process.
The days have gone when the oldest son inherited the farm; now new-age farmers are concerned about fairness to all siblings.
“It’s what’s right – not birthright,” argued one expert at Massey and most seem to agree on that point. But there’s more to it than just dividing up the business. There are family dynamics including fears about the role or influence of in-laws.
The possibility of a marriage breakup is another ‘fear flag’. Succession planning is as much an emotional as a business issue, so it gets bumped off the list of things to do because it’s too hard. Let’s face it, blokes shy away from emotional stuff and don’t like making potentially unpopular decisions.
Succession planning can be a bit like toothache. The longer it’s left, the more painful and costly will be the remedy.
Some experts say discussions on succession planning should start when the children are young so that expectations are clear and ingrained in them from an early age. But formal succession planning requires that farmers get good professional help to negotiate perhaps a difficult family conversation, then to set up a business structure that will stand the test of time.
Maybe two or three professionals need to be involved. A key issue is to find a way to mitigate the emotional aspects, and focus on a business solution that meets everyone’s financial and emotional needs.
The consequences of not having a good, robust and well articulated succession plan can be tragic and financially disastrous. Dairy farmers are good at looking after the welfare of their cows, but they need to pay the same attention to their multi million-dollar businesses. – Peter Burke
