How to take the stress out of land succession
Agricultural advisors have a big role to play in helping farming families negotiate issues around land transfer and farm partnership agreements
Dealing with the issue of the transfer of the farm is one that every farm family will eventually have to address. This will often involve decisions around the changeover of the management responsibilities as well as the transfer of farm assets and other assets.
The whole process can seem an extremely daunting prospect to some people which is why, quite often, the task of looking into the transfer is left until the last minute and is usually prompted by some impending tax-related deadline.
The first key step in kicking off the process of a farm transfer is to sit down as a family and decide what a successful farm transfer will look like when it is completed.
Issues such as who will assume overall management responsibility for the farm after the transfer as well as how will the farm and non-farm assets be apportioned should be discussed by the family members affected.
If agreement is reached in relation to some of the transfer issues, this will assist in getting focused advice from the various professionals later on.
Going to your agricultural advisor for guidance first can be a valuable first step. Most advisors will be familiar with many previous farm transfers and so can provide useful pointers as to what has worked well and what has caused problems in this area.
The advisor has also experience of the income-earning potential of a farm business - this is useful if there is another person coming in to the business with expansion plans and a requirement to earn a living from the farm.
They also have unrivalled knowledge of farm schemes and issues around the transfer of EU entitlements.