Not enough farm families openly discuss the topic of succession, according to agricultural mentor Heather Wildman.
The Nuffield scholar addressed the recent 2024 Ulster Grassland Society (UGS) conference, focusing on the issue of transition within farm families.
She pointed out that six issues drive change within a farm business, including: death; debt; disease; disability; disagreements and divorce.
Wildman said: “It’s important that sufficient planning has been put in place to meet any of these challenges, should and when they arise.
“Open communication involving everyone working within a business is critically important.
“This process should include regular meetings with everyone involved. If necessary, minutes of these minutes should be taken and agreed.
“The basic starting point to any discussion on farm succession, is the identification of all the people with a shareholding in the business.
“This includes those people who are not actively involved on a daily basis.
She explained that it is not unknown for family members living in other countries to have been bequeathed interest in a farming business by a previous generation.
Succession plan
Wildman stated that succession is a long-term process. She further explained: “It must have outcomes that meet the expectations of everyone involved.
“In the case of some people, this may include a plan to get out of the business in order to look at other career options. Retirement planning is also important.”
According to Wildman, getting the professional advice required to help put a succession plan to together is very important.
People involved here will include solicitors, accountants and bank manager.
“If necessary, it might also prove useful to include representatives of those businesses the farm deals with on a regular basis,” she continued.
“Getting professional advice at an early stage can also save money.
“Actively involving an accountant or solicitor to assist in the development of a succession plan can cost relatively little as opposed to the large sums involved when these professionals are engaged in the wake of an unplanned sudden death or divorce,” she said.
Having an accurate knowledge of the assets and debts that relate to a farm business is a fundamental driver for any discussion on farm succession.
“Having an agreed structure for the business is also important. Farms can be set up as sole trading operations, partnerships or companies limited by guarantee,” she continued.
“Where partnerships are concerned, a legally-recognised agreement should be established.
“Everyone working within farm business should make a will, which can be changed as and when required.
“The appointment of a living power of attorney is also strongly advised,” Wildman stressed.