Succession planning – our story

I have had a lot of queries recently about succession planning. It is especially topical at this time of year given budget announcements and plans to ease off or gear up in the new year. The question I often get asked is when and where to start. My response is always it is never too early to start. Communication is key in any family farm.

When to start - my story

I came across an article recently written by Con Hurley, then dairy editor of the Irish Farmers Journal. It was headed “The Meehan story 1986-1998: From mobile home to thriving farming business” and published on 26 December 1998. It got me thinking about how our succession plan came about and whether it might help other families devise their plans. It is also timely for me given that I am getting married this week. From a young age, myself and my three brothers were encouraged by our parents to make a living from the farm. However, with a fragmented farm of 60 adjusted acres in four divisions, 28 acres of which are around the parlour, it was clear this would be difficult to achieve. So we were brought around the kitchen table at a young age to develop a plan to try and achieve this.

With my two older brothers showing an interest in becoming farmers from a young age, it was clear we had to increase the land base in order to provide a viable farm unit for each of us for the future. With that in mind, we started to improve profits by concentrating on utilising a grass-based dairy system using whatever policy incentives were available to achieve those aims. We grew stock numbers by taking a number of leases under the Early Retirement Scheme, grew quota by my brothers utilising incentives for new entrants to dairying and 100% stock relief, and grew profits by focusing on utilising grass to best advantage and reducing capital expenditure. Today we farm 750 acres, 500 owned and 250 leased, and are calving down 350 cows between us with hopes to expand to provide viable farm enterprises for the next generation.

We devised a family philosophy 30 years ago which continues to guide us today based on three objectives:

Quality of life is important in that teenagers and young adults are very perceptive about how their parents work and play. They are not attracted into jobs or farms where it is all work and no play, so having a balance is important to encourage the next generation to make a living from the farm. If you have to work hard, you have to be rewarded not only in terms of getting a kick out of what you do but also in monetary terms. Like many farming families, the children had a tie to the land – thus the importance of allowing the farm to be used as a base for the family in the future.

While I farm part-time, my main job is as a solicitor and tax consultant specialising in agriculture. Confident in the knowledge that the farm could provide me with a base in the future, I set up my own practice from an office on the family farm shortly after qualifying. My younger brother is an engineer with a property development company in the US, making the brave move to New York shortly after qualifying.

Our ambitions were facilitated by my parents developing off-farm enterprises on the farm. With the visitor interest in the grass-based dairying enterprise, a purpose-built conference centre was established on the farm in the early 1990s. This continues to serve as an information sharing platform where we learn from farmers all over the world.

A natural lake on the farm was also developed around the same time to create a fishing enterprise.

My brothers and I worked on these off-farm enterprises over the years which was an invaluable experience in developing “common sense” as my parents often called it.

Hopefully my story illustrates that it is never too early to sit down and talk about plans for the future of the family farm and that the farm can provide a living for all family members, be they hands-on farmers or not.

Through my professional work liaising with the Agri Taxation Review Committee, the Department of Agriculture and my new role as a council member of the Law Society of Ireland, I see first-hand the policy focus on protecting the family farm structure which is the fabric of rural Ireland. There are plenty of incentives there through tax, state and EU funding to achieve that aim.

Where to start

With Christmas coming up, now would be a good time to get the conversation going. Many parents feel pressure to devise a plan. However, I would suggest assigning responsibility to the whole family to come up with a plan that is fair to everyone. There is one pot and it is up to everyone to decide how it is going to grow and eventually be divided up. The parents should set the scene and remind the family that they would like to see the farm continue as a viable enterprise and also that farms are often asset rich and cash poor so that the children must be realistic. Let them go away and think about it if needs be, but set a time and place for the family to come back to discuss what plans they have come up with.

I am off to get married so will be taking a break from work for a couple of weeks. My husband to be casually reminded me of the quality of life principle, so I had better be seen to put that into practice! I would like to wish every reader a very happy Christmas and continued health and happiness in the year to come.