Queensland Dairyfarmers’ Organisation held the first of its Growth, Transition and Succession Options for Dairy Farmers workshops at the Scenic Rim Council Centre on Tuesday May 15. The workshop saw attendance from multiple generations of dairy farmers seeking advice on the myriad options available to successfully transition the dairy business and property.
There are several steps within a transition plan and it is not an overnight process. It is best to start talking about it early – the sooner the better. Transition plans start with a succession plan which leads to your retirement plan and finally your estate plan and there are additional steps within each of these. It is complex because you are talking about not simply a business but people’s lifestyle, family and home. It is not a fait accompli that the business should or will pass down to the next generation, but that doesn’t have to mean that the current generation needs to leave the family home.
John Cochrane of Kenilworth Dairies said he knew of many young, energetic people who were keen to get into dairying but did not have the available funds or enough knowledge to take it on without guidance. Leasing and share farming options let them get their foot in the door and have a seasoned farmer there to guide them at the start.
Many farmers who attended said that leaving the family home when they transitioned the business had been a major concern but were reassured by the number of alternatives available that would allow them to stay on once management of the business passed to someone else.
Families can be fickle. Traditional transitions, where farms were shared by the next generation of men in a family, are a thing of the past. Over the generations, the size of each parcel of land became financially unviable so alternative solutions need to be considered. Nowadays you need to be fair to all siblings and you also need to factor in what happens in the instance of divorce, death, disability or disagreements.
Brett Hart, from Cleary Hoare Solicitors, said it was common for estates to be contested by siblings and other family members in agribusinesses. There are options available that can ensure that the intention of mum and dad is what ends up happening. These include structuring via Bloodline Trusts and an Aegis Will Packages that protect the assets during their lifetime and even for future generations.
Craig Turner, from QRIDA, told attendees there were number of grants available through the State Government that can assist the succession process including the First Start Loan which can help the younger generation branch out on their own or to support leasing or share farming arrangement.
QDO will host another workshop in Marburg on June 12. One-on-one sessions with members who attended the Beaudesert workshop will begin next week. These sessions are designed to assist in developing a plan that is right for the individual circumstances of the family. Members wishing to book in for Marburg or secure a one-one-one session should contact QDO on (07) 3236 2955.
