I often hear the comment “What do I do if I haven’t got a successor?”
Maybe the next generation are not interested and selling the farm is a step many would not want to take. Selling would also involve tax considerations and let’s face it putting the money in the bank at current interest rates is not a good option. The family may want to keep the farm in case the grandchildren are interested.
The older generation try to struggle on having a detrimental affect on their health. Others rent out the land on seasonal lets which can mean buildings etc not being maintained. This means the farm will need major capital investment in the future.
I always think this is an ideal opportunity to give a keen young person who is not going to inherit a farm a good start in the industry. So what about a Joint Venture? There are a number of options in how this is structured. Good advice is essential and it has to be a win/win option. It doesn’t work if one party feels they are at a disadvantage.
This is something that increasing numbers of farmers are looking at. The farmers who have embarked on this option say that it’s a real pleasure to help a young person and they maintain an enthusiastic interest in the industry. It also means the farm remains viable and well looked after.
It’s interesting to note that these young farmers are of a very high calibre. They have to be, as they have to ‘win’ these opportunities on their own merit. They are fighting against all the odds and it is our responsibility to make sure these exceptional people get a foothold in the industry. The whole industry will benefit from their considerable capabilities and determination.
If anyone is interested in considering this option I would recommend contacting AHDB in the UK as they have some Joint Venture templates. Also Tony Evans of Andersons is an expert in this area. Farming Connect in Wales are another option for advice. In the Republic of Ireland the man to talk to is Paidi Kelly at Teasgasc.