An Overview
Farm Succession Planning
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The information provided here should not be acted upon without first consulting with professionals who are experienced in this field and have an understanding of your particular circumstances.
This overview will provide you with general information on issues to consider and process involved in Farm Succession Planning.
A more detailed Farm Succession Planning - Resource Package is also available, which can be printed out or viewed on screen.
If you have any comments or questions about Farm Succession Planning, you can share them with other website users by visiting the Feature Issues Forum. The Feature Issues Forum also provides an opportunity to share your experiences and questions with lawyers, accountants, agribusiness consultants and others working in the field of Farm Succession Planning, throughout Australia.
The importance of succession planning
Planning for succession is a very important part of managing a farm business. Failure to plan can cause significant business problems, such as the sale of farming assets to settle estates, and family disharmony.
Succession planning allows you to anticipate and prepare for future events that may adversely affect farm business management. A good plan takes into consideration:
- retirement incomes;
- support for incoming generations;
- motivation for younger generations; and
- exploration of off farm alternatives for children who do not wish to pursue farming.
What does succession planning involve?
Succession planning is an ongoing process and should involve all family members who will be affected. It is not just a one off event; succession planning should be discussed over an extended period of time to ensure any changes that occur in the family or the farming business are taken into consideration. Maintaining family relationships is a high priority in successful succession planning and family members should work together to develop a workable succession plan.
Many delay planning to avoid confronting difficult issues such as providing for many children with few assets and/or the difficulty of treating family members fairly and equitably. However, identifying these issues is the first step in the process.
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