Farm and Estate Business Continuity Planning
Succession Planning but different
Why do farms, estates and other land based rural businesses not plan their business for what happens when one or more of the three D's (Death, Debt and Divorce) strike?
I believe there are 3 answers: 1)"It will never happen to us" 2) "We have always done it this way"; and 3), and most importantly, the perception of the word succession in "succession planning".
This is why I do not like the label of "farm succession planning", useful shorthand that it is, because I believe the very label puts individuals off from engaging with the issues that affect their business and make them believe it is something to be done tomorrow, when we all know tomorrow never comes.
For a number of years I have preferred to refer to the planning element of what happens to the business when an owner dies as being long term business continuity planning. This encourages engagement early, encourages the undertaking of general business planning, and keeps the issue of death, debt and divorce on the table so that the way in which they are tackled can develop in step with the business.
Business continuity looks at the risks and issues that are coming down the road at a business. From considering issues of key personnel, the changing political and economic landscape, climate change and disaster recovery, as well as family dynamics.
I work with you to identify the issues that are or likely will affect your business and help you to put in place policies and plans to mitigate those risks so that the business grows and succeeds for you and have every chance to continue to the next generation.
Rural Non-Executive On Demand
An edge for rural businesses.
Many companies have non-executive directors. A non-executive director of a company is an independent board member of a business but not a member of the executive team, so is not concerned with the day to day management of the business. They provide independent advice, and dispassionate and objective criticism to help those running the business make the best decisions.
Rural businesses and estates are not immune to risks just because they are geographically isolated. What happens if a key worker/family member or manager cannot work for an extended period? What happens in certain extreme weather events? All businesses, big and small, can benefit from the input of non-executive directors, but many rural businesses fear that the cost is beyond their financial resources. There is also a lack of individuals available to rural businesses to fulfil a non-executive role.
Rural Non Executive on Demand (RNED) has been designed to fill this gap in the market and to allow rural businesses of any size to access non-executive advise at a cost that suites them. I offer four levels of support for farms, estates and rural businesses, all named after different farm breeds native to my birth county of Suffolk. Details are shown on the pricing page but in short the service is designed to be flexible, affordable and simple but with the aim of allowing your rural business to flourish.
Avoiding Farm Succession Disputes
Avoiding the Inevitable
Family farms are the back bone of food production and environmental management in the UK. They can be complex businesses in their own right. For the family it is also "home". Too often families do not tackle farm continuity/succession issues because it is too difficult, too emotionally painful, or just not high enough up on the list of things to do. When a parent dies not only are the family having to deal with the inevitable emotional turmoil, but also have to deal with potential significant financial uncertainty. All of which can make simmering tensions in the family boil over unpredictably. When that occurs, inevitably all or a significant part of the farm ends up being sold and typically will also incur very large legal bills and years of emotional stress and uncertainty.
I can help your family achieve certainty for the business and those of the family closely concerned with it; peace for the older generation trying to do what they see as "right" as regards all of their children and family; and understanding for those parts of the family who are not involved with the business but have a close emotional tie to the farm.
There is no "one size fits all" solution to family farm succession, and it is often beset by misunderstandings and assumptions which cause rifts, anger and hostility within the family. To be successful, farm continuity/ succession is sometimes a painful experience but the family and the business will emerge stronger and with a clearer understanding of the future.
I can assist from simply helping get the conversation started, to fully managing the process with you.