THE biggest risk to a family farm is not government policy, climate change, drought, interest rates or commodity prices.
It is the family itself.
Farm succession is often pushed into the “too hard basket” until reality makes it unavoidable – and by then, it can become emotional, rushed, and sometimes ugly.
From personal experience, I have picked up a few points worth considering.
Most are borrowed wisdom, some are my own, and the list is far from exhaustive.
But for farming families who haven’t yet started the conversation, these thought starters might help keep both the farm – and the family – intact for another generation.
KEEP THE FAMILY TALKING
Every process needs a clear goal.
In farm succession, the most important one is simple: At the end of it all, you still want the family talking to each other. A successful succession is not just about assets. It is about relationships.
MANAGE EXPECTATIONS – START EARLY
Each generation needs to know where they stand.
You can never start too young to instill a sense of fairness, reality, and shared understanding. Silence breeds assumptions, and assumptions breed resentment.
A WILL IS NOT A SUCCESSION PLAN
Leaving everything to a document that can be challenged in court – and decided by someone who knows nothing about farming – is fraught with danger.
It is far easier to make your intentions clear while you are still alive, involved, and able to explain the “why,” not just the “what.”
IS IT JUST AN ASSET OR A FAMILY FARM?
This is a hard but necessary question.
Do you see yourself as the custodian of a family farm to be passed on, as it was passed to you? Or are you simply the owner of an asset that can be sold or divided as you see fit? Neither view is right or wrong – but it must be clear, especially to yourself, before the process begins.
EQUAL AND FAIR ARE NOT THE SAME THING
Equal division is not always fair division.
A house in Cottesloe may not compare neatly with 5,000 acres of Wheatbelt land. And the true value of farm assets is not only monetary – it includes labour, opportunity cost, family contribution, and ongoing responsibility.
Succession is about fairness, not arithmetic.
INVEST IN PROFESSIONAL HELP
A good succession plan requires expert advice. Paying for the right accountant, lawyer, and even family counsellor is an investment that can save enormous costs later – in taxes, disputes, and legal fees.
Do your homework, though. Some advisers understand farming realities better than others.
CREATE AN ENVIRONMENT WHERE EVERYONE HAS A VOICE
Many family members find succession discussions intimidating. People may stay quiet not because they agree, but because they don’t know how to speak up.
Whether it’s written submissions, one-on-one interviews, or an independent facilitator, everyone needs a safe way to express expectations and concerns.
PAY THOSE WORKING ON THE FARM A FAIR WAGE
This is often overlooked. If matters end up in court, the law does not reward the sibling who worked for years on the farm for pocket money over the sibling with a well-paid city career.
A fair wage helps recognise contribution – and ensures that those who have stayed on the farm can build some assets of their own, whatever happens.
DON’T FORGET ‘GRUMPY GRANDMA SYNDROME’
The matriarch of the family may have sacrificed a career, friendships, and personal ambitions to move to the farm and raise the family.
She may sit quietly through discussions focused entirely on everyone else. It might also be her time to be rewarded – whether that means travel, a place in town, or finally moving to the coast.
BEWARE THE BOGEYMAN: INHERITANCE TAX
Inheritance taxes have a habit of returning. An enormous transfer of wealth is coming as farms change hands, and governments will eventually want a slice. In the UK, Labor gave farmers only a year’s notice before tightening inheritance tax settings. It is a question of when, not if.
Keep an eye on it.
TRUSTS DON’T LAST FOREVER
Family trusts have their own lifespan.
Check where yours are at.
Review structures regularly and remember there are often more options for distributing shares in a farm business than simply selling land.
NOTHING IS SET IN STONE
Families change. Relationships form and fail. The wayward child gets their act together. The organised one goes off the rails. The farm kid heads to the mines, and the city lawyer decides they want their children raised on the land.
Succession planning must be adaptable.
If you get the fundamentals right – communication, clarity, fairness – you can adjust as life evolves.
Because in the end, the farm matters.
But family matters more.
By STEVE MCGUIRE
President – WA Farmers
