Fife’s arable farmers braved bad weather to discuss succession and potato lets at the HGCA and Potato Council’s monitor farm in Fife.
More than 30 people attended the meeting hosted by Danny and Alison Milne of Auchtermuchty, who have been HGCA monitor farmers since winter last year.
It followed on from a meeting at the end of last month when community group members raised the need for more detailed dialogue on succession.
During the meeting Andrew Aitken, a member of the monitor farm’s management group who farms at Percival in Buckhaven, gave a frank and in-depth case study of his own farm’s succession issues, followed by advice on succession by independent adviser Peter Cook.
Peter Cook said: “It’s a clich to say it, but too many farmers leave succession planning too late.
“They need to think about what they want, discuss it with all of the family, and start planning how it is to be done, well before it seems like an imminent issue.
“And don’t forget to equip the successor(s) with the capabilities and experience to make the future business a success. Allowing the successor to build up their knowledge of business management and level of responsibility is also key.
“This can be broken down to allow succession to gradually be achieved and allow a smooth transition of the running of the business.”
The Fife monitor farm is facilitated by Stephen Young from SAOS.
He said: “The main conclusion from this meeting was that early communication between generations is absolutely vital. You can’t wait until succession becomes an issue, because it will be too late. Of course it’s an emotional issue, but the longer you leave it, the worse it gets.”
Alison Milne farms at Demperston in Auchtermuchty with husband Danny and Danny’s parents. She said: “The case study that Andrew presented prompted people to ask questions about their own families, and whether they are properly prepared for things that might happen in the future.
“It’s important to remember that transition is difficult for everyone, both the older and the younger generations.
“From our own point of view it’s important for us to look to the future. We’ve got young children and we need to think now about how we best equip them to carry on the business, if we want to pass it on to the next generation.”
The key conclusions of the group’s discussions were:
* It’s never too early to think about succession planning.
* Seek professional advice, both legal and tax.
* Make sure you have power of attorney sorted before it becomes an issue.
* Look at how communications work in your family business, and involve all parts of the family business
* Question assumptions you may have made.
HGCA Scotland manager Gavin Dick added: “ The overriding conclusion from the succession debate, and emphasised by Peter Cook, is the need for effective communication where all family members including non-involved siblings and partners/spouses meet with an agenda to discuss the business, the family and the way forward.”
The second half of the meeting in Fife dealt with the rent of arable land for potato lets.
Danny and Alison are reconsidering renting ground to a neighbour, and the ensuing discussion was lively.
In the community group was a mix of people: some grow potatoes on their own land, some rent land for potatoes, and some rent out arable land for potatoes.
Summing up discussions from the community of farmers at the monitor farm meeting, Stephen Young said: “The interesting thing was that the issue isn’t always money, but quality of land available to rent, and the condition in which the land is returned to the owner.”
As a result of this meeting, the group is looking to put together a template or checklist for agreements between landlords and tenants for renting potato land.
Alison said: “Working with HGCA and the Potato Council, we want to produce a template for agreements, or a code of practice to allow people to have a point of reference to help them review different options.”
The next meeting at Fife monitor farm will be on January 28.
The monitor farm project in Fife is hosted by Danny and Alison Milne, who run a mixed livestock enterprise at Demperston Farm, Auchtermuchty, with Danny’s parents.
As well as 70 suckler cows and some sheep, the business grows 550 acres of cereals including spring barley, winter wheat, oilseed rape, field beans and oats.
For the monitor farm project, a partnership between HGCA and the Potato Council, the Milnes are joined by neighbour John Weir, who farms 150 acres of potatoes at Lacesston Farm.
For more on monitor farms pay a visit to
hgca.com/monitorfarms
.