Strong growth in farm salaries - report
A new report shows farm employers across the dairy, sheep and beef, and arable sectors have continued to invest strongly in one of their greatest assets – their staff.
Succession is often a difficult journey for farming families; the idea of ‘sharing the helm’ or seeing a change in captain can be challenging for many farmers, says an agricultural lender.
Rabobank’s latest report, ‘Farm Succession Planning: Navigating the seas of change’, highlights the importance of starting the process early to adequately map out a strategy and manage the expectations of all parties involved.
Commodity analyst and report co-author Emma Higgins says that honest conversations regarding profitability, expectations and visions for both the family and business pose as challenges when it comes to approaching succession.
“For existing farmers, the idea of initiating these discussions and handing over the helm can sometimes be overwhelming and complex – many are leaving it too late which can cause more significant issues to arise later on,” says Higgins.
“Simply delaying succession conversations and ‘hoping for the best’ is an incredibly risky strategy for the business and family unit. Delay in itself becomes a problem in that the more time passes, the more succession options become restricted, further exacerbating stresses and difficulties in the family.”
The Rabobank report suggests that building and maintaining a viable business and understanding the financial reality of the family farm is critical.
The company’s succession manager Tony Hammington says that seasonality ups and downs need to be considered, with both short-term and long-term needs assessed.
“A robust balance sheet and adequate cash flow are required to ensure career, work opportunities and retirement goals can coexist and meet the needs of all financially reliant on the business, before any new family members are offered the opportunity to work in the business,” he says.
“Conversations around profitability can be off-putting and further complicated by the strong emotional ties that accompany the sometimes judgmental opinions that a generation’s efforts are subjected to.”
Hammington suggests implementing planned business strategies that open up pathways for the next generation – such as share farming, leasing arrangements, family loans or equity partnerships.
“Having ‘skin in the game’ demonstrates commitment and generates additional motivation for new farmers, along with creating new options to expand the business,” he says.
“In addition, a win-win situation can arise for both parties – creating a role for the next generation in the family business can bring about a sense of achievement. A sense of value for the current generation is retained, and it provides the legacy of the family farm to the next generation.”
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Horticulture NZ chief executive Nadine Tunley will step down in August.