Agriculture & Family Farm Succession Planning Australia
Most farms in Australia are owned by families rather than corporations, with a few notable exceptions. If you’re part of the majority, it’s important that you have a solid plan in place for how the succession of your farm will be managed if there ever comes a time when you’re not able to continue running the farm yourself or no longer wish to do so.
Family farm succession planning is an important part of a farm business plan
The best time to start planning for succession is right at the start of your business. Far too many farmers wait until they’re almost ready to retire before they even begin to think about succession, and some aren’t even fortunate enough to make it to the retirement stage due to accident or illness.
Handing over the farm to somebody who isn’t prepared for taking it over is usually a one-way ticket to Disasterville. That’s not a journey you want your farm to be on, and one that nobody wants to be responsible for creating. Luckily, it’s avoidable if you have your succession plan firmly in place well before you need to bring it into action.
The golden rule of farm succession planning
There are not many strict rules to succession planning, but the one rule that must always be adhered to is that you must be absolutely sure that the person nominated as the successor actually wants to take over the business.
It’s not something you should just assume. Nor, if you expect to be nominated as a successor, should you anticipate this happening without actually establishing the fact to be so. You could get an unpleasant shock if you’ve spent your youthful years preparing for a future that is not meant to be.
The key to all this is communication between the farm owner and the individual most likely to take over the farm at some point in the future. The better you communicate, the better any subsequent succession is likely to be conducted, no matter what circumstances it may be conducted in.
Mulcahy & Co are experts in farm succession planning in Australia
We have been associated with the agricultural industry for generations, and we are a well known and trusted name in all kinds of agricultural consulting. Farm succession planning is one of the services we provide for our clients.
With our help, you can ensure that the eventual succession takes place in accordance with your wishes. You can also make sure that the business is in safe hands, as we can help you with every aspect of preparing for the handover. This can include helping to qualify the intended successor for the future responsibility.
Don’t let your farm fail due to a lack of adequate planning
There is no part of a farm business plan you can afford to let slide, and that includes succession planning. This is a very simple task, and if it is attended to sufficiently in advance of the succession occurring, should be a smooth and easy transition.
If you’d like to know more about the services available to farmers from Mulcahy & Co Agri Solutions, get in touch by phone or email, and we’ll be glad to have a chat with you.
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