Farmers encouraged to seek advice on farm succession planning

Farm succession is one of the pressing issues facing sheep and beef farmers with more than 50% of sheep and beef farms expected to change hands over the next decade.
Thursday, 6 December 2018

An upcoming series of Red Meat Profit Partnership (RMPP) workshops on farm business transition and succession aims to help farmers navigate what can often be a difficult process. The workshops will also be very relevant for people joining the sector and aiming for farm business ownership.

Malcolm Bailey, chair of RMPP says there is an opportunity to help farmers work through these issues and plan for positive outcomes.

“Many farmers have said they find it hard to know where to start the conversation because of the emotional attachment they have to their farms and the tensions of handling significant assets, often with competing family interests.”

“A key goal for RMPP is to help farmers through this process by providing information regarding succession options and ownership structures and sharing examples of successful outcomes.”

Farmers will be provided with resources and advice to help them explore the range of options available to them as they look at entering or exiting farm business ownership.

Mr Bailey also noted the possibility of linking up people who are wanting to progress in the red meat sector with those who are wanting to exit.

“Some farmers have sons and daughters who are not interested in taking over the farm but grandchildren who might. They want to retire but want to keep the farm in the hope that a family member will take it on. Leasing the land or taking on a share farming partner who owns the stock are a couple of ways of achieving this.”

“It is also important that retiring farmers can access the capital they require to enjoy life beyond farming. Good planning is important, and we encourage farmers to think about this well ahead of time.”

The workshops have been developed following research by RMPP and discussions with farmers, rural professionals and young people keen to progress in the red meat sector.

For further information on the workshops including locations and dates, and to register go to www.rmpp.co.nz. Each workshop is limited to eight farm businesses and they are fully funded by RMPP.