It’s that time of year again when families gather, the roast lamb is on, and someone inevitably brings up the weather, politics – or perhaps worse – the future of the farm. Christmas might not seem like the right time to tackle farm succession planning, but for many farming families, it’s the only time of year when everyone’s actually sitting around the same table. And if you can survive a heated debate about who overcooked the ham, you can probably handle a conversation about who’s taking over the herd.
Succession planning is one of those topics that too often sits in the “too-hard basket”. With rural property prices still high, it can be difficult for the next generation to buy out siblings at full market value.
The first step is working out what “success” looks like. For some, that means keeping the farm in the family; for others, it’s ensuring Mum and Dad can retire comfortably while giving the kids a fair go. Trouble is, every family member’s idea of success can be different. Will Dad ever really want to hand over the reins? Does Mum dream of a house in town? Can Junior and his spouse work alongside the older generation without World War III breaking out?
Despite the complexities, most families share similar goals:
- Keeping the family business going for the next generation
- Ensuring the retiring generation has a secure income
- Keeping farm debt at a manageable level
- Treating all children fairly, whether they stay on the farm or not.
There’s no one-size-fits-all formula, but there are plenty of practical tools that can make succession smoother. Some families release capital by selling off unused assets, subdividing land, or cashing in shares. Others create off-farm investments or use life insurance to balance inheritances. Graduated takeover plans, like sharemilking or leasing, can help a child ease into ownership while still providing income to Mum and Dad.
Company structures are another good option. They make it easier to transfer ownership over time, bring formal decision-making to the table, and ensure everyone gets a voice, without turning Sunday lunch into a board meeting. Trusts can also provide protection from relationship property claims and keep assets secure for future generations.
Whatever the structure, communication is the real key. Transparency and fairness go a long way in preventing family fallouts. Independent valuations, clear expectations, and regular discussions – ideally before tempers or Christmas spirits run high – are essential.
Finally, don’t forget the tax implications. Livestock and machinery often have book values far below market value, which can lead to big tax bills on transfer. Before making any moves, talk to your accountant and lawyer – they’ll help you navigate the numbers.
So this Christmas, once the crackers are pulled and the trifle’s gone, it might be time for the most important family conversation of all: the future of the farm.
How can we help?
If you’d like processional advice on your farm succession plan, WRMK Lawyer’s experienced rural law team will be happy to assist you. Please give one of us a call or contact your usual WRMK lawyer for advice.
This article was first published in December 2025 in the Kaipara Lifestyler.
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