When planning the path to succession there’s a lot to consider, and it can seem overwhelming at first. But if you think of it as a process instead of an action, it makes it much less daunting.
The most obvious thing to think about is how to secure the future of the farm, but don’t forget about the need for a sustainable income for both the retiring and the next generation.
It’s a good idea to find out the wishes of other family members or stakeholders as well and take these into account.
Whatever the size of your family and whatever the circumstances, this much is true – the better the communication between everyone, the smoother the process.
As well as communicating openly, it’s important to communicate early. This is true both for getting the family together and for seeking advice – the earlier you start succession planning, the better the outcome for yourself, your family and your farm.
10 steps to succession success
For farms to succeed down through the generations, it is important that the experience and knowledge gained by the current generation are passed to the next generation.
It may sound obvious, yet this is where a lot of farms can stumble.
“I was at the table making decisions with my parents from my early twenties. I didn’t think too much about it at the time, it was just what we did. But now I realise how much we’ve all benefitted from that,” said Mark Holohan, a commercial tillage farmer in Co. Kildare.
“By being involved in the finances, crop management and admin from a young age, succession was quite seamless to be honest.
“Sure, I knew the business inside out and I was able to build on what my parents had already achieved.
“The way we did it was that they transferred a large part of the land to me a year ago and I took full responsibility for the day-to-day running of the farm. But they kept some land to make sure they have financial security for themselves.
“That’s really important you know; you have to think succession through from everyone’s point of view to make sure the whole family gets the best from it,” Mark concluded.
Click here to find out more about how to manage your succession journey.
