Chris Bennett: No succession planning risks business future
Chris Bennett © Johnny Houston You may have heard the saying “Live like you’ll die tomorrow, but farm like you’ll live forever”.
When it comes to succession planning, however, too many of us are acting as though we’ll live forever rather than preparing for the idea we could die tomorrow.
See also: Opinion – knowledge from beyond agriculture is an asset
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There are many risks to farming businesses. We spend all our time and effort worrying about commodity and input prices, farm policy, and pests and diseases.
But we don’t spend long enough thinking about succession. And this lack of sufficient planning is the biggest risk to a family business.
Farming families should ask themselves what would happen if any one of them were to die. Is there a will in place? Can anybody else run the business, and do they want to?
There are so many questions, and it is very dependent on personal situations. And that is why it is important to discuss sooner rather than later.
Nobody wants a scenario where they are forced to make rushed decisions during a family emergency, and often when it is too late.
Succession planning is about preparing for the worst-case scenario and giving direction to the business.
The introduction of biodiversity net gain will see land tied up for 30-year agreements that will often affect the next generation more than the current one.
Similarly, carbon credits, tree planting and options like field-scale solar panels are all extremely long commitments.
I recommend holding a family meeting at least once a year that involves everyone directly affected, including spouses.
Complete honesty and a willingness to prioritise relationships over personal gain will lead to the best outcome for the family unit.
Much of the groundwork is establishing a direction for the business. Then you can start putting the plan into action with professional advice and guidance.
If you make succession a priority, everyone will be better for it.
