Succession planning

In this first article in a new series on how to run a family farm successfully, Trevor Dickinson, CEO of specialist consultancy Family Legacies, writes that the key to a profitable, long-lasting business is to start a family conversation about succession planning. And this needs to happen sooner rather than later.

Very few family farming operations transition effortlessly from one generation to another. The process requires careful planning, hard work and a lot of patience. Annelie Coleman spoke to several experts about the factors that drive success, and found that timeous succession planning, a family constitution, and a willingness to allow new entrants topped the list.

It’s tempting to put off the difficult job of succession planning. But if you wait too long, you could end up destroying a profitable business and harming family relationships.

Succession planning is a process that occurs over time, which ultimately involves the transfer of the farm business assets. It depends on the needs and wishes of the owner.

Succession planning of the family farm is often taken for granted as the transition to the next generation is assumed to be an uncomplicated process. Little or no thought is given to planning and grooming of a successor.

The importance of a succession plan for a farming business cannot be underestimated, and must be prioritised.