Non-Successor Siblings
The days are well over when
the son inherited the farm and
the daughters got
the second best dinner service
and grandmother’s portrait.
The research has shown that the impact and influence of non-successor siblings throughout the succession process is much greater than previously appreciated. A succession dilemma for farm families is when sibling equality impedes the transfer and the continued development of the farm business. The irony is that siblings generally support the retention of the family farm while seeking equitable asset distribution. Current social mores require that one child is not advantaged over another. The days are well over when the son inherited the farm and the daughters got the second best dinner service, the piano and grandmother’s portrait. Succession decisions for today’s retiring generation have become much more complex allowing as they must for all family members.
Siblings and equity
Treating all the children equally and
ensuring succession is a
financial impossibility
for the majority of families.
Treating all their children equally and ensuring succession is a financial impossibility for the majority of families. Therefore families strive to be fair rather than equal in their provision for non-successor children. Conversely the necessity of ‘buying out’ their siblings will always impede the succession of some successors as they strive to buy out sibling interests at an equitable rate. ‘Buying out’ can become an impediment to be resolved before succession can be completed. In these circumstances the presence of non-successors can determine the financial future of both the farm operation and the farm successor. Siblings also influence decisions regarding the retention of the family farm as they frequently hold expectations of the farm continuing to be their ‘home’ regardless of careers and lifestyles that may take them far from the farm.
Female siblings
Not all family members were considered as successors. Other sons, for instance, could be assisted onto other farms or they could have other career preferences. However, those most obviously absent from the succession choice were females - daughters were generally not considered even although according to the retiring generation up to a third of their daughters wished to be considered. Sisters were either not interested, were married to farmers or were engaged in their own careers, which ever way they were not, according to the successors, pursuing succession. Some successors reported that their sisters looked for succession in terms of equity only.
Acceptance of choice
It was agreed by both generations that non-successors, children and siblings had accepted the decision that they were not to succeed. Respondents nevertheless noted reservations from the non-successors regarding their exclusion and/or their desire to be included in ‘a share’ of succession assets. Having not initially been considered for succession did not preclude non-successor siblings, males and females, from returning later in their working lives to register an interest in succeeding to the family farm. The males in these cases had frequently taken up a career allied to farming.
Harmony
Successors recalled experiences of
destructive family discord
resulting from ill contrived succession -
they were determined their succession
would not divide their families.
Family harmony was important to today’s successors who described the steps they took to ensure that they succeeded to the farm with their siblings’ approval and support. They also regularly praised the encouragement given to them by their siblings as they progressed through their succession. The majority of these successors had either experienced, or recalled family stories of destructive family discord resulting from ill contrived succession. They were determined that their succession should not divide their family.
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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