Plan for successful farm succession heard in Wagga

To understand how to manage the process and not have it manage you Rod McKern, the southern district manager for Bank of Queensland based in Wagga Wagga organised for Peter and Hazel McInerney of 3D-Ag Wagga Wagga to facilitate a seminar on the topic.

"It is about the fair distribution of assets" Mr McKern said.

"Some among the farming community have no retirement plan and may prefer to 'go out with their boots on.'

"That may be OK if everyone knows and the implications for any next generation aspirations are understood."

However if the plan is for the farm to continue in the family Mr McInerney stressed the importance of "time, communication and doing the 'maths' associated with determining a fair and equitable distribution of assets, as key factors to a successful outcome where a viable farm business passes to the next generation."

"Starting early takes the pressure off and allows time to increase the asset base," he said.

Mr McInerney's rule of thumb is "if you want your children to have an opportunity to farm you must grow the scale of your asset base by double for one child, by three for two, etc."

"Transition is about change and comes with lots of decisions," he said.

"When talking about the transfer of assets and management control from one generation to the next, it's important for the current generation to talk about their intentions for the future, on-farm or off and communicate these to the family. The younger generation should also have their say."

Mr McInerney said the discussions should start early and involve all family members.

"At all times remembering that communication is about listening as much as talking," he said.

An independent facilitator can be helpful to lead family meetings to manage this potentially emotional time.

Mr McInerney said the old adage 'one day son all this will be yours', has often been heard, but are there other siblings to consider?

"Coming to recognise that fair and equitable rather than equal may be the only realistic outcome," he said.

"Every situation is different, and time is the crucial element to examining your options to arrive at a satisfactory succession outcome for all."

"To achieve that success, however, can take years, not weeks or months. So make a start!"

In conclusion, Mr McInerney noted the importance of successfully navigating the transitioning process is borne out by comments from the attendees, many of whom wanted a successful succession plan that meant all family members still talked to each other at the conclusion.