UK Agriculture is blessed with many inspirational individuals, who are progressive in thought and practice, shaping not only their own farming businesses but a legacy for the future.
The Worshipful Company of Farmers Annual Agricultural Lecture and Dinner always aims to bring such individuals to the fore, challenging the thinking of those in the room and not shying away from topics that are often difficult to discuss. The 2022 event, held at Plaisterers Hall in May, was no exception.
Opening the event, Master Karen Mercer referred to the lecture as “the huge elephant in the farmyard”. She continued,
“Despite the importance of succession planning, 60% of family farms don’t have a written plan, though they accept that the absence of such a plan threatens the very future of their business, which has taken a lifetime to build.
“Two thirds of those family members looking to take on the farm believe that being unable to talk about it is the biggest barrier – and one in four believe that doing so will create family conflict!
“This shows what a thorny issue succession planning can be, both for the business and the assets, it is often left, to be dealt with another day.”
The Master and her speakers – Prof Matt Lobley, Abigail Bird and James Small
With over 35 years of working on succession, Professor Matt Lobley from the University of Exeter asked the audience “what is fair and what is equal?”. He highlighted how often succession is viewed as handing over assets, when the focus should be the handing over of management control over time.
Matt explained,
“Ownership and management are often one and the same in farming, but this can change with succession. We need to be mindful of the emotional ownership – who you are and what you do is all tied up with the farm. We all need to see succession and the costs associated with it as an investment in the future of your farm, and your personal life.”
He continued by dispelling some of the myths that make succession such a difficult topic to tackle.
“You need to prepare yourself and your family. Before you bring in any legal help, you need to work out what you want as a family. Bring in an external facilitator, sit down, discuss your options, and try to make the decisions before you seek advice on how to practically implement it.
“Succession is all about preparing yourself. It takes time to prepare a successor. Share and delegate management over a number of years, don’t expect to do it all at once.”
During his Lecture, Matt demonstrated how far farming has progressed, despite the challenges still facing conversations linked to succession. He told the story of one family who believed they had no succession, commenting “I’ve not got a successor; I’ve just got two daughters”. Today, whilst this may still be the view of some, Matt explained that everyone is now considered in succession planning.
Some familiar faces in the audience seem to be enjoying the proceedings
This was demonstrated by the second speaker of the evening, James Small, who farms at the Cheddar Gorge.
James shared his first-hand experience of working across generations, with complex family issues including the loss of both his Father and Uncle.
The farming enterprise is made up of both owned and tenanted land, primarily grazing cattle and sheep. In the 1940’s his Grandfather moved to the farm and prepared a simple will, leaving the faming business in a trust that was to be setup for the lifetime of his Grandmother. James described her as being as strong as an Ox as she went on to live for another 35 years after his Grandfather’s passing!
It was only in 2010 that the family realised there was nothing in place to protect them and the farming business. The difficulty of discussing succession felt too big a leap, and the conversation was put on hold.
“In 2012 I joined the Rural Leadership course. It focused the mind and reinforced the need for succession, and more importantly new approaches on how to tackle it. Every time I stepped into the house, I would revert back to feeling like a small child, so we found neutral territory where everyone felt comfortable to speak.
We didn’t look at it in terms of what we wanted but instead what we wanted for our children. This helped us decide what was right for the future. The most important aspect for me and my wife was time. You don’t get it back, so we didn’t want to waste what time we do have.”
It took two years for James and the family to complete their succession plan but because they knew what they wanted, it provided more focused legal conversations. They ensured the solicitor and accountant were round the table at the same time, so they could help identify elements that the family might not have.
“Be clear about what you want and don’t be afraid to spend money. You have to see it as an investment and working towards a succession plan that everyone wants to achieve together. Take time and listen to all those involved – two ears and one mouth – but remember plans and circumstances can change too, so continually review and refresh the plan.”
His final words summed up his own journey, “better to have it and not need it, than need it and not have it.”
The final speaker was Abigail Bird of Laurus Law who discussed legal and tax issues. She explained the importance of getting the right legal advice and at the appropriate time.
During the evening, The Master paid tribute to Past Master Lord Plumb who passed away earlier this year.
“Henry was a truly inspirational international leader. He committed his life to the service of the farming community on so many fronts. He stood up for what he believed in and made sure that the voice of UK Agriculture was heard loud and clear.
“Ensuring there was a future for the generations to come, within our farming industry, was at the heart of so much that he set out to achieve. Which is clearly demonstrated by his legacy of The Henry Plumb Foundation. He was always approachable and had time for others….. So many of us here this evening are indebted to him.
Abigail Bird answers questions from the audience
“On a personal level, my friendship with Henry spans many years and I had the great privilege of being able to call him my Godfather for the past 17 years, behind which lies another story! We spent enjoyable times together, of which I have very fond memories and the greatest of respect for a truly wonderful gentleman. He will be greatly missed.”
The Agricultural Lecture and Dinner was kindly sponsored by Frontier.
