How to ensure the family farm can continue to thrive and prosper for generations to come
Biodiversity Legacy Director and active land covenantor, Jim Phillipson, is a strong advocate for succession planning to ensure that landholders and families can stay connected to the land.
Jim was one of 40 speakers invited to present at the GROUNDED farming festival in Tasmania, where he provided practical tips and advice on succession planning for farming families – a critical yet challenging conversation.
Modelled on the UK’s Groundswell festival, GROUNDED was established by the renowned Australian chef turned farmer Matthew Evans and partner Sadie Chrestman. It is a unique platform created ‘by farmers, for farmers’ allowing them to share knowledge about regenerative farming practices, food systems, soil and much more. Over 6,000 people attended the event.
Approaching challenging conversations
Jim highlighted the fact that, while these conversations can be difficult, if neglected they can jeopardise the future of the farm.
He emphasised a structured approach to these discussions, highlighting several key strategies, including the engagement of a neutral facilitator to guide discussions.
“This third party provides an objective perspective, helping to manage emotions and ensuring that decisions are made in the best interest of the farm,” said Jim.
“Their role includes communicating with title holders and formalising agreements, which can lead to more productive conversations.”
Jim advises starting initial discussions with a small group, specifically those listed on the property title. This approach minimises complications and allows for clearer decision-making.
“Once a foundational framework is established, broader family discussions can take place.”
Establishing a defined timeframe for succession planning is also crucial, said Jim, who recommends a seven-year window, broken down into three, five, and seven-year goals. This timeline encourages structured planning while preventing procrastination, making the process more manageable and focused.
A significant shift in mindset is also necessary when prioritising the farm over individual family members. By treating the farm as an independent entity, families can foster long-term viability and avoid the pitfalls of dividing the farm or selling it off. This perspective encourages discussions that focus on the farm’s future rather than individual interests.
Jim also urged the audience to consider alternatives to equal shares among children.
“Placing the farm into a protected legal entity can ensure its sustainability while providing income for retiring parents. This method can often yield better financial outcomes than traditional equal division,” he said.
Finally, he stressed the importance of acting while there is still control over decision-making. “Delaying the succession planning process can lead to a loss of influence over the farm’s future. By starting early and setting clear goals, families can create a succession plan that benefits both the farm and its family members.”