The Succession Process
The objective of succession is the successful passage of the farm business from one generation to the next. Should the successor generation be so burdened with debt that the viability of the farm business is jeopardised then the very goal of succession fails. Succession is eased in proportion to the family’s financial status.
Just as the farm business is managed
so should succession be managed.
Because succession is a process where generations progress through the actions of transfer, it is also a dynamic to be managed. Just as the farm business is managed, so should consideration be given to the management of succession.
Succession Universals
There are three universal dilemmas that every farm family for whom farm succession is a goal must resolve. How families balance the resolution of these dilemmas will depend on the characteristics of both the family and the farm business. How well they balance the resolution will determine the success of their ultimate succession. The three factors that constitute this balancing act are
- retaining an adequate retirement income,
- being fair to all the children,
- managing succession so that the successors and the farm business are not burdened with debt.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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