Farm without succession plan is like a ship without a captain
Although there is very little primary data on how many UK farming families have developed a considered and robust succession plan, anecdotal evidence from a wide variety of sources suggests that there remains a great number of family businesses who have yet to discuss this challenging subject.
"There are a great many inhibitors to succession planning but the primary reason is fear," said succession planning specialist Louise Taylor, managing director of Taylor Millbrook and partner in Barbers Rural Consultancy.
"This might be fear of falling out, fear of upsetting siblings, parents or grandparents, fear of retiring, fear of letting someone down or fear of agreeing a plan which in the end suits nobody.
"Challenging or not, a farm without a succession plan is like a ship without a captain. It might be able to sail along for a while but it will lack direction and essential forward-thinking management and ultimately flounder."
So what needs to be done? The vital thing is to start the conversation, however difficult it might be.
"The key players need to start talking about their needs, wants and aspirations for the future; it might be prudent to involve a neutral third party who can mediate between family members and ensure everyone is heard," she advised.
"Agree a plan: it doesn’t have to be complicated and might start out as a few bullet points covering objectives for the next few years.
"Take advice: from your accountant, solicitor, financial advisor, farm management consultant or chartered surveyor – anyone who knows your business and can offer specialist advice on business structure, tax planning, formal agreements and investment.
"Revise the plan: a robust succession plan needs regular review and revision to take into account changes in family circumstances, the economy and the direction of the business," she added.
Louise Taylor can be contacted on 01630 692500 or email louise@taylormillbrook.co.uk.
