Alan Blackburn and Associates Consulting


Farm Managment and Agribusiness Consultants

Facilitation of Farm Family Meetings

Succession planning involves a number of steps. They are not necessarily carried out in a particular order except to say it is unwise to try and finalise issues relating to financial planning, business
Alan Blackburn is a trained facilitator and a qualified mediator.  He will provide a structured process for conducting the farm family meeting.

structures and inheritance, until the personal and family issues and goals are worked through.  These steps are listed below.  In my consulting I focus on the first five steps.  Clients are encouraged to consult with their accountant and solicitor re steps 6 and 7.  Also in step 5 I work with clients in identifying the framework they are seeking, but clients may seek assistance from their accountant, financial planner, and or broker to finalise their retirement planning.

The first three steps involve family members. Sometimes matters are “resolved” in a manner that leads to anger, frustration and a breakdown in family relationships.  However this can generally be avoided if the farm family can meet and family members can express their hopes and aspirations for the future and listen to other family members do the same.  Such meetings when facilitated well, often lead to a sense of understanding and commitment, arising from mutual sharing of aspirations and interests.  The value of such a meeting is generally greatly enhanced if it is facilitated by an external facilitator, who understands farm families and farm businesses, and is a trained facilitator and mediator.

Alan Blackburn takes a team approach to succession planning.  We help farm families decide a course of action by assisting clients clarify planning goals.  In some instances we assist clients by facilitating family meetings or mediating disputes.  We also help clients evaluate their farm business and its capacity to meet the needs and hopes of family members.  We refer clients to their accountants and solicitors to create business structures that support succession plans and protect assets.

Step

 

1

ADDRESSING FAMILY ISSUES

  • Listening to the needs and aspirations of family
  • Seeking equitable solutions
  • Finding pathways for moving forward which have family understanding and commitment
 

2

DECIDING THE FUTURE OF THE FARM

  • Will the farm be kept or sold
  • Who will take over the farm’s management and control
  • How will they be “groomed” for this role
  • Does the plan address the needs of family members
 

3

DECIDING PERSONAL ISSUES RELATING TO RETIREMENT

  • When do I want to retire
  • Do I want continuing involvement with the farm
  • What income level do I need on retirement
  • Where do I want to live on retirement
  • If retiring off farm, how much capital is needed
   

4

DECIDING THE CAPACITY OF THE FARM TO MEET RETIREMENT AND SUCCESSION PLANS

  • What level of profit can the farm reasonably generate and is it sufficient to support succession and retirement plans
  • What options are there to increase farm profitability
 

5

DECIDING FINANCIAL PLANNING ISSUES

  • How will the desired retirement income be met
  • What role will superannuation play
  • Does a Self Managed Superannuation Fund need to be established
  • What contributions can be made to the super fund
  • How reliant will I be on farm income for retirement
 

6

DECIDING BUSINESS STRUCTURES

  • What business structures will support my goals
  • What business structures help minimise tax and provide asset protection
  • What business structures will protect assets
 

7

DECIDING INHERITANCE ISSUES

  • Preparing a will that reflects succession and inheritance goals
  • Ensuring business structures are supportive of inheritance goals