As Australia’s farming population ages, poorly planned succession can destroy wealth, fracture families and leave no one better off.

The average age of Australian farmers is currently somewhere between mid-50s and early 60s, substantially higher than that of workers in most other sectors. This relatively advanced age has significant implications for family-owned farms, particularly with respect to succession planning and the division of assets among children.

Often, for sentimental reasons, there is a desire to ‘keep the farm in the family’. However, it needs to be recognised that this aspiration can have major financial, social, family-cohesion, and mental health consequences. Perhaps the clearest way to demonstrate what can go wrong is to present a short case study – one that is, unfortunately, often close to reality.

Bob and Elizabeth Smith own a 4000-acre (~1620 hectare) farm in southern New South Wales. Their two daughters work in Sydney, while their two sons work on the farm. The property has generally been reasonably managed but does not generate sufficient income to support three families. As a result, both sons work off-farm........

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