From our experience working with many farming families in the region, we understand that farm succession is more than just a technical challenge. For many, it’s a deeply personal and emotionally complex process. The difficulties extend well beyond legal paperwork and financial strategies. Ultimately, a successful succession plan hinges on carefully treading the delicate balance between preserving legacy, ensuring fairness, and maintaining the farm within the family.
Farm succession is often misunderstood as simply a technical issue. But succession planning is not just about dividing assets, establishing trusts, or addressing tax implications. In truth, these considerations are usually the easiest part of the process. The real challenges lie in addressing the deeply human issues and managing the complexities of relationships.
A new national study into farm succession planning
Recently, the University of New England (UNE) launched the first national study on farm succession in 20 years, called ‘The FarmTransfer Survey’. The purpose of the survey is to uncover why some families succeed in handing the farm to the next generation while others struggle to find a way forward.
This study has the potential to help families and advisors better understand the relational and emotional complexities that underpin succession planning. Ultimately, its success will depend on how deeply it can explore these elements, rather than focusing solely on the practicalities.
Critical Questions for Farm Succession
From my perspective, there are some key questions farming families, and this survey, need to address.
How do families build trust? Trust is the foundation of any successful succession plan. Without it, even the most well-drafted agreements can fall apart. What steps can family members and the professionals supporting them put in place to ensure open and honest communication?
Is the farm financially viable? Even the best laid intentions can only go so far if the farm itself is not financially sustainable. Before we even consider succession, are farming families being given the support they need to make sure their businesses are strong enough to be passed down?
What does failure look like? We hear a lot about the success stories, however, farm succession failure is rarely discussed openly. Why was the true reason? Was the farm not viable? Did family relationships break down? Or were the expectations around succession simply unrealistic? Learning from these stories is just as important as celebrating the wins.
How are families managing fairness? Balancing the needs of farming and non-farming children is one of the toughest aspects of succession. What lessons can we learn from families who have handled this balance well, or poorly?
Lessons from the Trenches
In my years of working with local farming families, I have noticed a few patterns that often shape the outcome of succession planning. These lessons may not solve every issue, but they can provide a foundation for families to start from.
The earlier, the better. Families who start succession conversations early, when emotions are stable and everyone is clear-headed, tend to see better results. Waiting until a crisis forces the issue rarely leads to positive outcomes.
Flexibility is key. No succession plan will survive unchanged over the years. The most successful families treat their plans as flexible, revisiting and revising them as circumstances evolve.
Neutral guidance can be invaluable. Sometimes, an outside perspective is the only way to break through an impasse. A trusted accountant, mediator, or farm consultant can ask the hard questions and help families navigate emotional and financial roadblocks.
Succession is Bigger Than the Farm
Farm succession is not just a family issue; it is a national one. Intergenerational farms are the heartbeat of rural Australia, supporting local economies, infrastructure, and communities. When succession fails, the effects ripple beyond the family, weakening the core of regional life.
The UNE FarmTransfer Survey has the potential to uncover meaningful insights that could help farming families tackle these challenges more effectively. However, the survey is just the beginning. What matters most is how we, as advisors, policymakers, and families, take these insights and turn them into action.
Where to Start
If you are reading this and feeling overwhelmed by the thought of succession planning, you are not alone. It is a process that requires time, patience, and more than a little courage. But it is also an opportunity, an opportunity to shape your family’s future while preserving the legacy of your hard work.
At Smith Shearer, we have spent years helping farming families navigate the complexities of succession planning. We know the challenges, and we have seen the transformative impact that a well-thought-out plan can have, not just on the farm but on the family itself.
Whether you are just starting out or feeling stuck in the process, we are here to help. Let us work together to ensure that your farm, and your family, are in a position to thrive for generations to come.
Take the Next Step
If you are ready to contribute to this important national conversation, you can complete the UNE FarmTransfer Survey here: https://shorturl.at/PPszj.
Your story, your struggles, successes, and lessons learned, could help shape the future of succession planning in Australia.
Final Word
Farm succession is never easy, but it is one of the most important challenges farming families will face. By starting early, staying flexible, and seeking the right support, you can create a plan that protects your legacy and strengthens your family’s future.
Let us start that conversation, because succession is not just about the land. It is about the people who call it home.
