So, what to do with this succession malarky?

The sea is warm and the tuna are biting off the coast, if you can get a weather pattern flat enough to take the boat out. East Coast summers sure have changed. However, I suspect in the last month not a lot has changed in some kitchens around the question, 'how do we transact the pathway to another generation?'

So, what can you do to advanced the transition to retirement or at least introduce a new signature on the farm account?

Stock values should not be dismissed in any planning to pass the baton in a sheep and cattle operation. Two-point-five-year steers averaged over $3000 per head at the recent Gisborne cattle fair, not for just one pen but for the whole offering of close to 1000 head. Cows are chasing $2000 per head minimum and sheep are also well into the $200's each.

Helpful numbers if you are planning an exit from the farming operation. So, what are the options? Note: I write this purely from the view of the incumbent transitioning with no 'gold spoon' being passed to the next generation. Also, if you have left it until they are well in their 30s, you are too late for them.

1. Equity partnership - Put some cash in the bank and let the budding farmer start gaining equity in stock early so they get on the ladder. It's the beginning of a meaningful opportunity for them when doing the heavy liftiing on the farm. It gives you a chance to invest off farm or buy the house you need to exit at the end. A weakness is you need to listen with your ears not your mouth when they want to change the business model (from experience, not that easy...)

2. Lease the farm outright - Realise the value of all the stock and plan the next phase without having to sell the farm. There are so many ways they can raise the capital to buy stock these days with a mixture of loans, companies that lend against the stock and share farming opportunities in the early years. They will need to get out of bed in the morning and probably chase an external income to assist the early years. Be clear on improvements in the agreement though, as I have seen families pay for improvements twice if they end up buying the farm off you or their siblings.

3. Sell and move on - The cleanest way but the biggest decision. Make your decisions deliberately and plan the process with your trusted professionals. Make sure you present the place well and invest prudently to ensure the last years are comfortable and enjoyable. Be open in your thinking and rest easy that the decision is signed with your warm hands. If you kick the bucket while battling on the job, it’s someone else’s warm hands (probably legal) signing the documents and nobody wants that.

Now I reckon there are opportunities once off the farm that you haven’t even thought about. Reality is the stuffed knees and frozen shoulder will limit the golf improvement no matter how many rounds you play. If you are not on the All Black coach shortlist you can still tour with them, which will continue. Closer to home, and if you can fluke some good weather, the tuna are biting off the coast. Not a fly blown sheep in sight.

Fenton Wilson is a farmer and professional director who is proudly rural.