2022, Volume 25, Paper 2
ISSN: 2209-6612
Farming for Generations: An investigation into the challenges of farm businesses remaining in the ownership of the same family for several generations
Mike Stephens – Meridian Agriculture
Bill Malcolm – School of Agriculture and Food, Faculty of Veterinary and Agricultural Sciences, University of Melbourne
Alex Sinnett – School of Agriculture and Food, Faculty of Veterinary and Agricultural Sciences, University of Melbourne
Paul Deane – School of Agriculture and Food, Faculty of Veterinary and Agricultural Sciences, University of Melbourne
Bob Farquharson – School of Agriculture and Food, Faculty of Veterinary and Agricultural Sciences, University of Melbourne
Abstract
The three main aims of farming for succession are providing adequate funds for retirement, providing a viable farm for the next generation and providing a fair share of family wealth to all family members, including those who are not involved in farming. Achieving successful succession is difficult and takes a long time. Farm families need to start building the business early in life, work hard, consistently perform well, keep the family engaged, have a plan and maintain open and honest communication between all family members. Consistency of purpose is the key. Planning for succession, farming well and grasping opportunities that emerge are necessary to achieve the size of farm operation at which succession is a feasible choice. Scale is important, but scale alone will not enable the achievement of the three main aims. To enable the achievement of all the three main aims the older generation has to be prepared to let go, the younger generation has to be prepared to take over and the whole family has to be satisfied with the result. It is never too early to start planning for succession.
This paper provides the key insights and findings arising from a significant doctoral research study that was designed to explore this central concern across Australian farms.
Keywords: farm family goals, managing farm succession, farm business growth, farm planning.
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