Creating happy succession plans for your farm

Rural Exchange 29/07/2018

As our farmer population ages, trying to figure out who will take over the farm is also a growing concern.

Without farm succession plans, aging farmers can struggle to step into a well-earned, enjoyable retirement.

Census data shows the average age of cattle farmers in 2013 was 56, up from 53 in 2006, while sheep farmers on average were 53, up from 50 in 2006.

Meanwhile, dairy farmers had an average age of 41, compared to 40 in 2006.

Those statistics prompted concern from Rabobank who decided to take on a succession planner to help plan a pathway for the farm owner to release their capital, then plan for how they will spend their upcoming retirement years.

According to Bayleys Real Estate, options often presented to retiring vendors can include retaining some vendor finance within the farm business to help the incoming owner, if they find themselves not capable of raising all the capital needed through banks.

For young operators, lease to buy options are also a big appeal for those keen to get in the gate.

See more on succession planning from Bayleys Real Estate here.

Rural Real Estate on Rural Exchange is a regular feature on REX thanks to our friends at Bayleys Real Estate.

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