Transferring the family farm is so much more than just a simple business transaction; there are a number of complex issues to be addressed including:
- The family home is normally inseparable from the business.
- A number of family members/ siblings/ children to be catered for fairly
- If the transfer is during the owner’s lifetime, the owner will require an income, as well as possibly the recipient depending on the circumstances.
- Creating an arrangement that can provide a solution for the different opinions of the family members involved the discussion
What is farm succession planning?
Farm succession planning involves planning how you will transfer your farm to another person when you retire or step back from farming.
The plan covers how you will transfer ownership of the farm, but can also include transferring skills, knowledge, and labour.
This can be a complex process, so you need to plan it carefully to avoid family disputes and ensure you make the most of any available supports or tax incentives.
You should also give yourself plenty of time to make the plan, as issues such as paying into a pension for your retirement need to begin well before transferring your farm.
What are my options when transferring my farm?
You have a number of options when it comes to passing on your farm. These include:
- Transferring the farm to a child or family member
- Starting a Succession Farm Partnership
- Leasing the farm
- Selling the farm, either partially or entirely
A Guide to Transferring the Family Farm
It is essential for every farmer to have a farm succession plan in place. There are complex legal and taxation rules that, if planned for, can be managed easily. If not planned for, however, there could be a major impact on the viability of the farm business.
This publication looks at seven specific issues that require discussion when a succession plan is being put in place.
- The Farm Business
- The Farm Family
- Legal Issues
- Taxes
- Collaborative Farming
- Availing of a Pension on Retirement
- Education
Farm Succession & Transfer Guide
Farming is not only a business, but a way of life for many farmers. In most cases the farm has remained in the family for years, being passed down from generation to generation and going through a number of changes. As the farmer you have the opportunity to decide the future of the farm, and making decisions early allows for forward planning which prevents decisions being made for you.
This manual will:
- Help deal with the emotions involved in succession and inheritance
- Provide you with the options available to help transfer management and ownership of your farm
- Identify the main issues and facts on succession and inheritance
- Highlight some of the main areas that you need to get professional advice and guidance on
- Provide you with the best methodical approach to succession and inheritance
Elder Mediation
Elder Mediation may assist in farm succession and transferring the family farm.
Elder mediation serves as a forum for families to engage in constructive intergenerational discussions and collaborative decision making. This cooperative process is private, confidential and entirely voluntary.
Specialised mediators facilitate focused conversations addressing the various changes and stresses that often occur throughout the family cycle. Family members are encouraged to express their interests and concerns in an informal and safe setting.
In Elder Mediation, a Mediator or co-Mediators who have specific training in intergenerational dynamics and age-related issues, typically involving a large number of participants.