Succession planning is one of the most important topics for the Shared Passion Better Future series. Starting that conversation is as important as any element of business planning. In some cases, it is the most important step towards a sustainable long-term business.
Clare O’Keeffe of Succession Ireland has developed her business around that conversation. We asked her to answer a recent query from a young farmer – “When is it time for the older generation to step back?”– and to revisit the family that won the Shared Passion Better Future series competition last year.
They were a family where there was a young son taking over and the husband felt under attack.
“I’m 33 and have been farming at home for the last five years. My parents did sign over the out farm to me when I came back to farm, but held onto the home farm and the house for security. I have no problem with that, but the problem is my father still has control of all the finances and paperwork. He has to make any major decisions.
“I’m married with three children. My wife is working, but money is tight. My father and my mother are now both getting the pension, so are actually better off than they have ever been.
“We have a good relationship, but he is not willing to discuss handing over just yet. There is not much borrowing on the farm, but I will have to invest to expand in the future. I feel that he should be taking a further step back.
“I don’t want him to stop, but is it unfair to want to be in more control at this stage of my farming career?”
Clare O’Keeffe says that the story this young man tells is certainly not an isolated one. “Land law in Ireland and our societal structures have led to situations where people like this man’s parents often feel like they must hold on to power over the land in order to protect themselves. The farm is often, after all, their only pension and seems to give a sense of security while they own it.”
For any father, the change of mindset from being an active farmer to a retired farmer can be complicated and difficult.
“Recently retired farmers are often left questioning their self worth, without ever actually verbalizing this. You ask yourself: “If I am not a farmer – who am I?” Raising the very question of their role can be a frightening prospect,” said Clare.
“We have found that the enormity of how and when to best approach a difficult topic like this will often prevent the whole conversation from happening. This may lead to people simply disassociating themselves from each other because it is easier to cope that way.
“Total communication breaks down and a heavy silence prevails in the farmyard. Resentment and family tension mounts and both family and work relationships suffer unnecessarily. This takes its toll on all involved. It does not need to be this way,” said Clare.
“For something to change, father and son have to talk about the issue – it’s possible the father isn’t even aware of how his control of farm finances is upsetting his son. They could have this conversation themselves or use a service like Succession Ireland to mediate. The key is to find common goals and work to progress these. Chances are the father still wants some level of involvement in the farm, but he definitely needs to hand over more responsibility to his son.
“A focused open conversation would go a long way to improving understanding between the two parties.
“Mediation often helps to break the ice on this hard subject.
“The first step is to understand the needs of the other person and your own needs. This includes perhaps the reasons behind those needs, both in relation to the farm work and managing the finance. These issues directly relate to decision making and who controls what now, and into the future. This type of conversation is far more difficult for some families. However, it is not impossible, and from our overall experience, family relationships do emerge on a much better level after a mediated succession planning session.
“There are hopes and fears unaddressed on both sides by what this young farmer outlines.
“I do appreciate the very thought of exploring the family farm business may not be easy at first but it is possible. By leaving things unaddressed the unspoken, problems can grow bigger. This does not benefit the families involved, nor does it help the farm business into the future. Someone must make the first move to address the growing tensions. What have you to lose?”
An update from Ben and Teresa (names have been changed), the family who won the mediated consultation through the Shared Passion Better Future 2013 series.
Ben and Teresa own and run a large dairy enterprise in partnership with their son Tadhg. When Teresa wrote in, Ben felt under attack from Tadhg to transfer the farm and relationships were deteriorating. How have things evolved for them since their mediated meetings with Clare O’Keeffe, Succession Ireland, a year ago?
“After that meeting, I felt much better and stronger in my decisions, as if a cloud had somehow lifted. It definitely helped us see more clearly what was positive about us,” said Ben.
When asked about the plan that had been set out, Ben said: “The plan was a bit like going on a diet.-We dipped in and out, but we are making progress, slowly.”
“We have found that if you have it planned out in your head and the other person has not given it the same thought, there can be a bit of an explosion,” Ben added.
There was one of those crises in June. Tadhg had planned and booked a holiday with his girlfriend. A field was earmarked for reseeding. They have always done all their own work as they have good machinery.
Suffice to say there were different plans as to who was to do the reseeding. Ben thought it would be done by them, while Tadhg felt time and physical energy were a scarce resource and to conserve time, a contractor was hired in and the job was done perfectly and the grass is peeping up. It wouldn’t have been Ben’s way, but the end result was the same.
“Let’s just say there are different styles of management that we are each learning from,” said Ben.
Since the consultation, Ben and Teresa have taken a two-week holiday abroad, the first in many years.
“It was thanks to Tadhg, who took over full responsibility. We had a wonderful time once we arrived at our various destinations. We did switch off. It was fantastic. We had fun together and we enjoyed ourselves,” said Teresa.
Teresa feels that the most important thing for her is family, while she thinks the business is more important to men. “We both work for the family. It’s the impetus that keeps us going as it’s all for the family in the long term. If you can’t accept that as a farmer’s wife, you’re in trouble,” Teresa felt.
“The relationships are very good now. We are getting older and there is definitely more respect. When he came home from his holiday, our son Tadhg said: “There’s nothing like Ireland. It was lovely to hear him sound so settled and happy,” she added.
“The next project is a new milking parlour. It will be a big investment, but necessary. Milk price is good at the moment. We are planning ahead and thankfully we are able to talk and work better together now,” Tadhg said.
“We are so lucky to have grown-up children, great to have them as friends and able to accept them as they are. Things are much better for us now and we are able to enjoy life a bit more,” said Teresa.
It is the last chance to win a free succession planning session with Clare O’Keeffe, Succession Ireland, on offer again this year. To enter, we want you to send in 200 words telling us why you deserve to have the planning session. All details will be confidential.
Email betterfuture@farmersjournal.ie or send your entries in to Shared Passion series, c/o Peter Young, Irish Farmers Journal, Irish Farm Centre, Bluebell, Dublin 12. Closing date is 1 August.
Most people who contact Succession Ireland do so for the benefit of an independent, non-judgmental, confidential family business service. Mediation is a form of dispute resolution where an independent qualified person assists two or more people to reach a solution that’s acceptable to everyone. Mediators do not judge, take sides, give advice nor direct the outcome.
For many farm families, working through a transition or succession of the family farm operation often reveals underlying conflict that gets in the way of making good business decisions. The biggest lesson for many family members to understand is that fair does not have to mean equal when dividing assets.
Mediation will benefit different people in different ways:
For the quieter family member, it will ensure their voice is heard.For the stronger personality, they have an opportunity to learn what is really going on for those around them and the effect of their behaviour.For those fearful of conflict, mediation provides a safe place for family arguments to be explored and resolved in a respectful manner.For the aggrieved, a conflict from the past may make it difficult for them to engage with their family or in-laws in a meaningful way. Mediation creates an environment and structure for such blocks to be addressed and overcome.For those who feel they are burdened with all of the decisions, mediation provides a space where this can be addressed.For a family in conflict over an estate, litigation/court can have devastating effects on the value of the estate. Mediation can help address the underlying sources of conflict and avoid court costs.Mediators are impartial and do not make judgments or give advice. A family creates and owns their own agreement, rather than having the terms of how they should interact in the future decided by a judge.When love and a marriage have broken down and one or both parties need an independent, confidential mediation service.As Albert Einstein said “in the middle of difficulty lies opportunity”. Often, the collective mind of a farming family creates and sustains viable working models for the family business much better than one person making decisions on their own.
It is a great way of enabling a family to use all of the resources within the family to best guide the family business through transition.
Reader views
I’m glad to see the Shared Passion series back. We were farming ourselves and didn’t realise we were getting older until we read the article on the Smithwick family last summer. (They had sat down as a family to plan out a succession path). Our own situation is somewhat similar .We had no idea who would farm the place into the future, nor whom we should or would give it to. We felt if we could use the Smithwick’s model as a guide, we would be happy going forward.
So we contacted Clare in Succession Ireland. We had one meeting and now the ball is back in our court. We are a great family of talkers, but all so busy doing our own things. Life seems to get in the way of facing up to what lies ahead. I got my first pension payment recently and that’s another indicator that I should be making plans. We do intend addressing this subject as a family in the autumn.
Livestock producing farmers. Co Galway.
Succession planning is one of the most important topics for the Shared Passion Better Future series. Starting that conversation is as important as any element of business planning. In some cases, it is the most important step towards a sustainable long-term business.
Clare O’Keeffe of Succession Ireland has developed her business around that conversation. We asked her to answer a recent query from a young farmer – “When is it time for the older generation to step back?”– and to revisit the family that won the Shared Passion Better Future series competition last year.
They were a family where there was a young son taking over and the husband felt under attack.
“I’m 33 and have been farming at home for the last five years. My parents did sign over the out farm to me when I came back to farm, but held onto the home farm and the house for security. I have no problem with that, but the problem is my father still has control of all the finances and paperwork. He has to make any major decisions.
“I’m married with three children. My wife is working, but money is tight. My father and my mother are now both getting the pension, so are actually better off than they have ever been.
“We have a good relationship, but he is not willing to discuss handing over just yet. There is not much borrowing on the farm, but I will have to invest to expand in the future. I feel that he should be taking a further step back.
“I don’t want him to stop, but is it unfair to want to be in more control at this stage of my farming career?”
Clare O’Keeffe says that the story this young man tells is certainly not an isolated one. “Land law in Ireland and our societal structures have led to situations where people like this man’s parents often feel like they must hold on to power over the land in order to protect themselves. The farm is often, after all, their only pension and seems to give a sense of security while they own it.”
For any father, the change of mindset from being an active farmer to a retired farmer can be complicated and difficult.
“Recently retired farmers are often left questioning their self worth, without ever actually verbalizing this. You ask yourself: “If I am not a farmer – who am I?” Raising the very question of their role can be a frightening prospect,” said Clare.
“We have found that the enormity of how and when to best approach a difficult topic like this will often prevent the whole conversation from happening. This may lead to people simply disassociating themselves from each other because it is easier to cope that way.
“Total communication breaks down and a heavy silence prevails in the farmyard. Resentment and family tension mounts and both family and work relationships suffer unnecessarily. This takes its toll on all involved. It does not need to be this way,” said Clare.
“For something to change, father and son have to talk about the issue – it’s possible the father isn’t even aware of how his control of farm finances is upsetting his son. They could have this conversation themselves or use a service like Succession Ireland to mediate. The key is to find common goals and work to progress these. Chances are the father still wants some level of involvement in the farm, but he definitely needs to hand over more responsibility to his son.
“A focused open conversation would go a long way to improving understanding between the two parties.
“Mediation often helps to break the ice on this hard subject.
“The first step is to understand the needs of the other person and your own needs. This includes perhaps the reasons behind those needs, both in relation to the farm work and managing the finance. These issues directly relate to decision making and who controls what now, and into the future. This type of conversation is far more difficult for some families. However, it is not impossible, and from our overall experience, family relationships do emerge on a much better level after a mediated succession planning session.
“There are hopes and fears unaddressed on both sides by what this young farmer outlines.
“I do appreciate the very thought of exploring the family farm business may not be easy at first but it is possible. By leaving things unaddressed the unspoken, problems can grow bigger. This does not benefit the families involved, nor does it help the farm business into the future. Someone must make the first move to address the growing tensions. What have you to lose?”
An update from Ben and Teresa (names have been changed), the family who won the mediated consultation through the Shared Passion Better Future 2013 series.
Ben and Teresa own and run a large dairy enterprise in partnership with their son Tadhg. When Teresa wrote in, Ben felt under attack from Tadhg to transfer the farm and relationships were deteriorating. How have things evolved for them since their mediated meetings with Clare O’Keeffe, Succession Ireland, a year ago?
“After that meeting, I felt much better and stronger in my decisions, as if a cloud had somehow lifted. It definitely helped us see more clearly what was positive about us,” said Ben.
When asked about the plan that had been set out, Ben said: “The plan was a bit like going on a diet.-We dipped in and out, but we are making progress, slowly.”
“We have found that if you have it planned out in your head and the other person has not given it the same thought, there can be a bit of an explosion,” Ben added.
There was one of those crises in June. Tadhg had planned and booked a holiday with his girlfriend. A field was earmarked for reseeding. They have always done all their own work as they have good machinery.
Suffice to say there were different plans as to who was to do the reseeding. Ben thought it would be done by them, while Tadhg felt time and physical energy were a scarce resource and to conserve time, a contractor was hired in and the job was done perfectly and the grass is peeping up. It wouldn’t have been Ben’s way, but the end result was the same.
“Let’s just say there are different styles of management that we are each learning from,” said Ben.
Since the consultation, Ben and Teresa have taken a two-week holiday abroad, the first in many years.
“It was thanks to Tadhg, who took over full responsibility. We had a wonderful time once we arrived at our various destinations. We did switch off. It was fantastic. We had fun together and we enjoyed ourselves,” said Teresa.
Teresa feels that the most important thing for her is family, while she thinks the business is more important to men. “We both work for the family. It’s the impetus that keeps us going as it’s all for the family in the long term. If you can’t accept that as a farmer’s wife, you’re in trouble,” Teresa felt.
“The relationships are very good now. We are getting older and there is definitely more respect. When he came home from his holiday, our son Tadhg said: “There’s nothing like Ireland. It was lovely to hear him sound so settled and happy,” she added.
“The next project is a new milking parlour. It will be a big investment, but necessary. Milk price is good at the moment. We are planning ahead and thankfully we are able to talk and work better together now,” Tadhg said.
“We are so lucky to have grown-up children, great to have them as friends and able to accept them as they are. Things are much better for us now and we are able to enjoy life a bit more,” said Teresa.
It is the last chance to win a free succession planning session with Clare O’Keeffe, Succession Ireland, on offer again this year. To enter, we want you to send in 200 words telling us why you deserve to have the planning session. All details will be confidential.
Email betterfuture@farmersjournal.ie or send your entries in to Shared Passion series, c/o Peter Young, Irish Farmers Journal, Irish Farm Centre, Bluebell, Dublin 12. Closing date is 1 August.
Most people who contact Succession Ireland do so for the benefit of an independent, non-judgmental, confidential family business service. Mediation is a form of dispute resolution where an independent qualified person assists two or more people to reach a solution that’s acceptable to everyone. Mediators do not judge, take sides, give advice nor direct the outcome.
For many farm families, working through a transition or succession of the family farm operation often reveals underlying conflict that gets in the way of making good business decisions. The biggest lesson for many family members to understand is that fair does not have to mean equal when dividing assets.
Mediation will benefit different people in different ways:
For the quieter family member, it will ensure their voice is heard.For the stronger personality, they have an opportunity to learn what is really going on for those around them and the effect of their behaviour.For those fearful of conflict, mediation provides a safe place for family arguments to be explored and resolved in a respectful manner.For the aggrieved, a conflict from the past may make it difficult for them to engage with their family or in-laws in a meaningful way. Mediation creates an environment and structure for such blocks to be addressed and overcome.For those who feel they are burdened with all of the decisions, mediation provides a space where this can be addressed.For a family in conflict over an estate, litigation/court can have devastating effects on the value of the estate. Mediation can help address the underlying sources of conflict and avoid court costs.Mediators are impartial and do not make judgments or give advice. A family creates and owns their own agreement, rather than having the terms of how they should interact in the future decided by a judge.When love and a marriage have broken down and one or both parties need an independent, confidential mediation service.As Albert Einstein said “in the middle of difficulty lies opportunity”. Often, the collective mind of a farming family creates and sustains viable working models for the family business much better than one person making decisions on their own.
It is a great way of enabling a family to use all of the resources within the family to best guide the family business through transition.
Reader views
I’m glad to see the Shared Passion series back. We were farming ourselves and didn’t realise we were getting older until we read the article on the Smithwick family last summer. (They had sat down as a family to plan out a succession path). Our own situation is somewhat similar .We had no idea who would farm the place into the future, nor whom we should or would give it to. We felt if we could use the Smithwick’s model as a guide, we would be happy going forward.
So we contacted Clare in Succession Ireland. We had one meeting and now the ball is back in our court. We are a great family of talkers, but all so busy doing our own things. Life seems to get in the way of facing up to what lies ahead. I got my first pension payment recently and that’s another indicator that I should be making plans. We do intend addressing this subject as a family in the autumn.
Livestock producing farmers. Co Galway.
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