Succession planning is a process not an action. But individual circumstances can make it a tricky process. Starting early is key because it is not only retirement that can trigger it. Angus Kebbell starts a series

I have talked about succession on a few occasions and given how important this process is, over the next four weeks I am revisiting this all-important and often challenging area of farming.

Over the next four weeks I will be profiling farming families, talking to experts from the advisory sector and investigating new opportunities for farmers thinking about diversifying their farming business. When it comes to ‘what’s next’ for the farm, there’s a lot to think about, so I will aim to share success stories, provide useful tips and help you understand more about the many facets of succession planning in the food and fibre sector today.  In the first episode, I sit down with Ben Speedy General Manager of Rural banking at ASB to get his thoughts on succession and an introduction to some of the ways banks can help farming families navigate the currents of succession.

ASB recently conducted research with Kantar and spoke to Kiwi Farmers throughout the country and across industries to understand they key issues keeping them up at night, and what is on the horizon for them. Sixty percent said succession planning was on their minds which shows there is a lot that can be done, and conversations that can be had, when it comes to thinking about “what next” for the farm.

Ben says, “Like any good business owner, food and fibre producers must have a plan for the future of their business. Succession can be hard for farmers and in fact bittersweet. In our experience, many of our customers who have put their whole adult lives into ensuring their farm is a functioning, profitable business have mixed emotions about the idea of selling or passing it on.”

The best succession stories that I know of posses three common elements, the first is intergenerational off farm investment, no matter how small that initial off farm investment might be and indeed contributions made through the years, this amount can add up to a significant number. The second is encouraging children to create their own careers and businesses away from the farm, this reduces entitlement and a sense of ownership towards the farm from a young age. The third and potentially the most important is starting the conversations early.

All of these things combined will allow a smoother process and increase options for any retiring farmer, and importantly the next generation coming through.

Listen to the podcast to get the full story and full perspectives.

Angus Kebbell is the Producer at Tailwind Media. You can contact him here.