A long term plan for farm succession has enabled the Hargreaves family to transition ownership and control of their growing and successful enterprise

When farmer Tom Hargreaves left school he was encouraged to go away and find his own path in order to be able to return one day.

“We all sat around the table, Mum and Dad, my two sisters and me and they explained how they thought it could work and asked us what we wanted,” Tom said. “We all wanted the farm to stay in the family.”

Tom and his wife Anna were gifted a minority stake in the farm, his parents kept the majority share, both held in trusts, and his two sisters received other off-farm investments.

“That’s the beauty of their succession plan – no money has changed hands.  No money has had to be borrowed to pay out my sisters.”

Kakahu Angus Stud was bought by Tom’s great grandparents in 1924 and some 98 years on, Tom is now in control. What was 500ha when his father Gerald took over from his father, has grown to 1600ha with 20,000 stock units which include a Romney-base sheep flock, Angus and Charolais beef studs plus commercial herds and the recent purchase of a nearby 420-cow dairy farm.

Expansion like this is not easy and Tom said debt has been required to achieve this growth, so indeed a good banking partner is critical, and he also made the point that their farm advisor who has been with the family for a long time, has played an integral role in shaping their succession through the generations.

Eight staff work on the various farming operations with Tom and Anna continuing their architecture business from the farm’s homestead.

“When I left school, I worked on a high country station for a year and then went to Lincoln University studying agriculture but I didn’t really enjoy it.”

“After a year there I got the opportunity to play polo for Ireland and then England and when that ended I studied architecture in New Zealand.”

Working in Christchurch and then Melbourne, he was ready to return to the farm with his young family, having enough of city life.

“I thought I always would take over the farm one day but I’m not someone who has had a roadmap at any point.  I was never 100% sure.”

“I always helped out on the farm when I was a kid, coming home for holidays from boarding school.  And when I was playing polo I would spend the summers on the farm before going back to England.”

“It was something I always enjoyed.”

And now, in control, he’s enjoying the freedom his dad is giving him.

“He’s still busy on the farm.  He’s out on the tractor today.  He’s here if we need him and he’s not if we don’t.”

“Dad was always looking at new opportunities and technologies that we could use on the farm so I’m very much the same.

“He’s very good at letting me make my own decisions but he knows I’m the type of person, just like him, who does their research to make sure it will work before changing things.”

The stud uses EBVs (estimated breeding values) and progeny testing in their breeding programmes looking for ease of calf, good temperament, high carcass weights and marbling.

Cows on the dairy farm are used for embryo transplants from the Angus stud.

Tom says the succession plan his parents developed was very different to their parents and grandparents.

His great grandfather had given his two sons the farm on his death with one son then leaving to farm in the North Island.

When Tom’s father Gerald took over, he had to buy his sisters out using his share of the property as equity for the bank loan to do it.

What was also different for Gerald and his wife Sue was they started investing off farm when Tom was born.

“They were part of syndicates that bought commercial property in New Zealand and they’ve done very well.  It’s this they’re using to help out my sisters.

“Belinda has a backpacker’s business from it and Fiona works as a child psychologist but is involved in organic vegetable growing in Christchurch which helps people into jobs.”

Both sisters still come back to the farm whenever they can.

“Relationships are really important.  We can all talk to each other openly about the farm and we’ve all stayed close throughout the process.

“We could all be open and honest about what we wanted.

“It is definitely not easy, but our personalities, the fact that we all get on, helped.”

And Tom and Anna are already thinking about the next generation - their daughter Francesca is six and Louie is two.

“They both love being out on the farm but who knows what they will end up doing.”

“And that was one of the reasons we bought the dairy farm.  We’ll never sell the home farm but if one of the kids wants to go dairying it’s there for them.” 

“We also put money into off-farm investments whenever we can.”

In two years, in 2024, the Hargreaves will celebrate 100 years of family ownership of Kakahu.

“It’s an amazing history, an amazing place to farm, to bring up a family.  We’re very fortunate my parents made sure it happened.”

Being open, engaging in a plan early with all family members, and seeking the advice of good trusted professionals has set the Hargreaves up well and will continue to do so for generations to come.

Remember, it’s not too early to start thinking about what’s next for your farm, and it’s never too late.

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