Why farm succession is different
Passing a working farm to the next generation is not like dividing a share portfolio or splitting a house sale. Working farms present unique challenges that require careful planning and open family communication.
Farm succession differs from other estate planning because:
- You cannot split a working farm into equal parts without destroying its viability
- The farming child may have contributed decades of work at below-market wages
- Land carries emotional value beyond its financial worth
- Equal is not always fair when one child has dedicated their life to the farm
Common family tensions
These conversations are difficult because they touch on family relationships, legacy, and mortality. Common tensions include:
The farming child expects the farm. They have worked the land, often for below-market wages, and feel entitled to continue.
Non-farming children feel excluded. They see a valuable asset going to one sibling while they receive less.
In-laws complicate relationships. What happens to the farm if the farming child's marriage ends?
Parents struggle to discuss mortality. Succession planning means acknowledging what happens after they are gone.
These tensions are normal. Every farming family we work with faces some version of these challenges. Acknowledging them is the first step toward resolution.
How to start the conversation
The conversation is worth having, even if it feels awkward. Consider:
- Who should be involved? Usually parents and all adult children, but sometimes starting with just parents makes sense.
- Professional facilitation. A neutral third party can help navigate difficult dynamics.
- Managing expectations early. Everyone needs to understand that fair may not mean equal.
"We have helped Hawke's Bay farming families navigate these conversations for generations. Many families find that having a professional involved makes the conversation easier."