If you’re a young farmer who is currently involved with the family business – or hoping to be in the future – you might be aware that succession planning will play a big part in your future on the farm. It also might be something that you avoid thinking about too much, let alone actively work towards.
This is understandable as succession planning can be an uncomfortable topic. It isn’t only about business planning – family relationships and emotional connections to the land and the lifestyle are also major factors. As the younger generation, it can be easy to assume that the older generation will take charge and lead the way in formulating a plan. But this isn’t always the case and if both parties make a habit of avoiding difficult conversations, it’s possible that you could be in for an unpleasant surprise once the topic is finally discussed.
Mike Krause, CEO and founder of P2P Agri, has over 30 years’ experience in Farm Business Management and has acted as a third party advisor in developing succession plans for many Australian farming families. We recently spoke to him to find out why succession planning is so important and how we as young farmers can best approach the process.