ON FARM NATIONAL The secrets to Road to success Mike said a smooth succession smooth succession• build and maintain relationshipsrequires families to: • have open and honest Are you starting to think Start early communication between all about your succession The first step is to start the conversation family members plan? Mike Stephens, early and don’t wait for a catastrophe to • manage expectations agricultural consultant force your hand. • build a business capable of and Director of Meridian “It’s never too early to start planning for delivering Agriculture in Victoria, outlines succession by building the business,” • understand the needs, wants and what’s needed to successfully Mike said. aspirations of each family member hand over the farm. “If you do that, you have choices. in each generation Mike has been advising producers on Succession is a very long process.” • choose the approriate businessp succession planning for around 40 structure. In it for the long haul years and is currently completing his Building a business for succession is a PhD on the subject. long‑term project. Mike Stephens At a recent MLA BeefUp Forum in Mike said there are generally three E: mstephens@meridian‑ag.com.au Mareeba, he shared a story he said is aims of family farming: far too common. MLA BeefUp Forums are held • having the funds to enable retirement across northern Australia and “I was part of a family conversation • having a viable farm for the children provide producers the opportunity about succession when the husband who want to farm to hear about the latest on‑farm looked at his watch and said ‘oh dear, research and development, gain I have to go and check that cow that’s • having sufficient funds for the industry insights and have a say calving’,” Mike said. non‑farming children to be happy. on future research priorities in “The air was pretty thick so I opted to go“Often a good plan is one where their region. and help him. We jumped in the ute and nobody is overjoyed but nobody is Check the MLA events calendar drove out to the top of hill where he got harbouring resentment.” for upcoming BeefUp Forums: out calmly and just stood. I said ‘where’sHow to get started mla.com.au/events that cow?’ and he told me there’d been “A succession plan is how you move a ot of non‑existent calving cows overl the responsibility for management, for the years.” getting the work done and eventually Mike said this was a classic example ownership from one person or a group of avoidance which, unfortunately, to another person or group,” Mike said. tends to go hand‑in‑hand with farm The process could play out like this: succession planning. 1.Give some serious management Mike has a recipe for smooth succession responsibility to a certain backed by years of first‑hand experience family member. and comprehensive analysis, including 2.Next, make that person a case stup genuine partner.dies co‑funded by MLA Donor Com any (MDC). 3. Let them take ownership of the Be proactive, not reactive business separately from the land. Succession of a viable farm business 4.Finally, identify how they can buy is afinancial reality for only a few – the land. potentially only 30% of farm businesses achieve it, according to data from the “By taking this stepped approach, you Australian Bureau of Agricultural and can allow them to start to buy out Resource Economics and Sciences. siblings early,” Mike said. A Meridian survey of professionals who, “No two plans are the same and between them, advised 6,500 farm there’s a whole range of things you businesses, showed most producers can do from an early stage.” ■ don’t have a succession plan and are reluctant to develop one. Agricultural consultant Mike Stephens. 13