Traditionally our farming ownership models have been family orientated, with ownership passed down to the next generation. This has been a model that has worked very well for generations. In current times this can prove to present challenges for all involved if proper succession planning has not been put into place. A lot of hard-working young men, used to be able to shear their way into farm ownership, which was a great achievement, although those days are almost 100% behind us. Ever-increasing land prices, as well as strong competition from other industries such as forestry and carbon, have put farm ownership out of reach for most hard-working farmers. The goal of most people aspiring to become farm owners is to have sole ownership of the farm. Sometimes to achieve this goal. You must take smaller steps to get there. Going alone into farm ownership can be exceedingly difficult and near impossible financially for a lot of people these days. Although, when talking to farmers who are looking to grow their farming business or get into farm ownership for the first time and you mention working with a group of farmers or their fellow neighbours to secure a particular farm, the reaction is usually met with a strong “no way” or “never would I work with someone else, I want it 100% myself”. “Then when that property is sold for another land use, (which in our district is almost 100% forestry and out of the farming industry forever) the classic lines come out, “I would have brought that, just needed more time” or “If only I had known so-and-so was looking we could have worked together” The strength of farm ownership going forward needs to be more of a collective instead of every man on his own. In business, you get strength in numbers and by working as a team. The new norm should be working with neighbours or groups of farmers to secure a farm, whether to split the farm or to run it as a stand-alone unit, 1/3 of something is far better than nothing at all. Joint ventures and equity partnerships where you have an investor/s having a share and as well as a farmer is the way forward to helping budding farmers into farm ownership. As an agent, I am spending a lot of time to try and get these sorts of scenarios happening and to become common practice. Thinking of selling or buying or just want to discuss the rural real estate market, feel free to get in touch.
Thinking Rural Real estate, buying or selling? Tom has you covered, marketing all types of rural land, large and small.
