Australian Farmers' Attitudes Toward Succession and Inheritance

Abstract

Unlike other businesses, family farming is characterised by an intimate connection between the farm as a place of work, career and family tradition. What impacts upon one aspect, will impact upon all. An earlier study by the lead author (Kaine, Barclay and Stayner 1997) noted the difficulty and complexity of succession planning for Australian farmers as they sought to meet three conflicting objectives: to maintain a viable farm business for the next generation, treat all of their children fairly and provide for their own retirement. For some farmers, farming is a 'way of life' and they experience great difficulty in handing responsibility over entirely to their children. ... As the vast proportion of Australian agricultural businesses are family owned and operated, how these families plan and manage retirement, succession and inheritance is therefore a concern for the whole agricultural industry. Effective advance planning in these areas can provide a sense of confidence and security and thus help preserve harmony within the family. However, if not properly handled, the transfer of the farm between generations can lead to confusion, uncertainty, suspicion and can result in deeply damaging divisions between family members. These decisions have been made even more difficult by prolonged and severe drought and economic forces, which have left many of Australia's farm families unable to sustain operating budgets.