Episode 57 – Passing the torch: the realities of farm succession
Farm succession is one of the toughest challenges for farming families, with many young farmers struggling through the process. Rural counselor Kathryn Wright discusses the emotional complexities of succession, strategies for managing family dynamics, and tips for approaching these crucial conversations. Sheryl Haitana also speaks with Sandy Van Den Heuvel, Director of BlackmanSpargo Rural Law, about the legal aspects of succession, highlighting who the stress often falls on and when. Additionally, Greytown farmer Hamish Hammond chats about the season in Wairarapa and the importance of water efficiency and the upgrade they’re doing to their irrigation.
Guests include:
- Kathryn Wright, Rural Counselor
- Hamish Hammond, Wairarapa farmer
- Sandy Van Den Heuvel, Director, BlackmanSpargo Rural Law
Hosts:
- Sheryl Haitana, Editor, Dairy Exporter
- Anne Lee, Deputy Editor, Dairy Exporter
Rural counselor Kathryn Wright shares insights on the emotional challenges of farm succession and the generational divide that makes these conversations difficult. While younger farmers often seek guidance, older generations can struggle to let go of control. Kathryn provides practical strategies for navigating these discussions, including the importance of timing, using “I” statements to reduce defensiveness, and bringing in an impartial perspective. She also highlights the mental toll of succession, identifying red flags for stress and burnout. Emphasising the need for balance, she urges farmers to prioritise their well-being and seek support when needed. With valuable advice on identity, control, and family dynamics, Kathryn’s guidance helps ensure that succession planning not only secures the farm’s future but also strengthens family relationships.
Dairy farmer Hamish Hammond, based in Grey Town in the Wairarapa, shares insights into his farm’s seasonal challenges and improvements. With a promising spring and timely Christmas rain, Hamish’s farm saw a boost in milk and grass production. However, weather variability remains a challenge, with dry periods and strong southerlies posing risks to both animals and crops in the region. Hamish talks about his irrigation system, which covers 150ha, and the significant infrastructure upgrade underway to improve water efficiency. The new system will automate water distribution, saving both time and labor costs, while also enabling better feed production. He highlights the importance of managing water carefully, especially with looming restrictions, and emphasises the need for good soil moisture monitoring. Despite the challenges, Hamish remains optimistic about the future, citing the benefits of both solid infrastructure and favorable weather conditions.
Legal expert Sandy Vanden Heuvel offers essential advice on the legal side of farm succession, focusing on the importance of early planning and the right structures to protect both the business and family dynamics. Sandy explains the differences between succession and estate plans, emphasising the risks of leaving things until after death, particularly with the Family Protection Act in play. She shares insights on common pitfalls, such as neglecting financial viability and failing to account for off-farm assets, and stresses the importance of clear, transparent communication with all family members. Sandy also advises younger generations to seek their own legal and financial counsel to ensure they’re fully informed when stepping into farm ownership. With practical tips on legal structures and the need for professional guidance, Sandy’s expertise helps ensure that succession planning is both legally sound and fair to all involved.
