FFF insight 21 - The Succession Canyon™

Why Some Families Cross, Some Get Stuck and Others Fall In 

Why do some farming families successfully navigate succession, while others get stuck halfway or fall into the canyon? 

Having worked with farming families for more than 25 years, I've seen succession play out in all sorts of ways. 

Some families successfully navigate the transition. Others never get started. Some make it halfway before becoming stuck. And unfortunately, some fall into the canyon, with significant consequences for family relationships, farming businesses and wealth. 

This week, we're revisiting a concept we've discussed previously — the Succession Canyon™ — and exploring five different situations farming families can find themselves in. 

What Is the Succession Canyon? 

Imagine standing on one side of a large canyon. 

On your side is the farming family as it operates today. Mum and Dad might still own the land, control the finances and make most of the decisions. The next generation might have been working on the farm for 10, 15 or even 20 years. 

On the other side is the future the family hopes to achieve. 

Mum and Dad have financial security and the freedom to enjoy the next stage of their lives. The next generation has taken on greater responsibility, leadership and potentially ownership. And importantly, family relationships remain intact. 

The challenge is building the bridge between where the family is today and where it wants to be. 

There's no single bridge that works for every farming family. Every family has different circumstances, personalities, financial positions and expectations. 

Five Families. Five Different Outcomes. 

1. The Family That Successfully Crosses 

Mum and Dad take the lead, start early and involve the family in developing a clear direction. 

They understand everyone's goals, work through the obstacles and progressively transition management, leadership and ownership. 

They involve professional advisers when required, and while there might be a few bumps along the way, they successfully reach the other side. 

The lesson: Successful succession generally starts with proactive leadership, open communication and a clear direction. 

2. The Family Standing at the Edge 

Everyone knows succession needs to happen, but nobody takes the first step. 

There's always another harvest, another season or another reason to put it off. 

Five years pass. Then ten. 

Meanwhile, Mum and Dad are getting older, the next generation is becoming frustrated and opportunities may be disappearing. 

The lesson: Doing nothing is still a decision, and delaying succession can reduce the options available to the family. 

3. The Family Stuck Halfway Across 

The family has started the process. They've had meetings, spoken with advisers and perhaps even agreed on some of the arrangements. 

But then they hit an obstacle. 

Perhaps Mum and Dad aren't ready to relinquish control. Perhaps the children have different expectations. Or perhaps the financial, taxation and legal issues become overwhelming. 

The process stalls, sometimes for years. 

The lesson: Starting succession is important, but families also need a process for working through obstacles, making decisions and maintaining momentum. 

4. The Family That Falls Into the Canyon 

Unfortunately, this happens too. 

Succession is delayed, disagreements develop or a parent passes away before arrangements are properly documented. 

What family members thought was agreed turns out to be very different from what the wills or legal structures actually provide. 

Relationships deteriorate, legal costs mount and sometimes the farming business or assets must be sold. 

The consequences can extend well beyond money. 

The lesson: Succession isn't simply about protecting assets. It's also about protecting relationships, preserving opportunities and reducing uncertainty for future generations. 

5. The Family That Finds Another Way Across 

Not every successful succession follows the original plan. 

Sometimes the next generation decides farming isn't for them. Sometimes the business isn't large enough to support everyone. Sometimes land needs to be sold or ownership restructured. 

That's not necessarily failure. 

Success is about finding an outcome that works for the family, even if it's different from what everyone originally imagined. 

The lesson: Successful succession doesn't always mean keeping everything exactly as it is. Sometimes the best outcome requires flexibility, compromise and a willingness to consider alternatives. 

Building the Bridge – Where Does Succession Start? 

At Future Farming Families, we believe successful succession starts with the family, particularly the parents and senior generation. 

It starts with building knowledge, understanding and confidence. 

It starts with understanding what the family wants to achieve, establishing the facts, identifying the obstacles, exploring the options and making informed decisions. 

Importantly, families don't need to have all the answers before involving their accountant, solicitor or succession consultant. However, the better prepared they are, the more productive those professional discussions can become. 

Our Future Farming Families Foundations program and Succession Blueprint™ have been developed to help families build that foundation and progressively work towards becoming Succession Ready™. 

You don't need to have every answer before you start. But you do need to start. 

Where Is Your Family in the Succession Canyon? 

Consider these questions: 

• Are you standing at the edge, knowing succession needs to happen but unsure where to start? 

• Have you started the journey but become stuck halfway? 

• Are you making steady progress towards the other side? 

• Or have you already successfully completed the transition? 

Every farming family's journey will be different. 

The important thing is understanding where you are today, where you want to get to and what needs to happen next. 

Take the Next Step 

Watch Our Succession Canyon Videos 

We've previously shared two videos exploring the Succession Canyon and the challenges farming families face. If you haven't watched them, they're a great place to start. 

Watch Succession Canyon Video 1

Watch Succession Canyon Video 2

How Succession Ready Is Your Family? 

Our Australian Family Farm Transition Benchmark is designed to help farming families assess their current succession readiness, identify potential gaps and consider their next steps. 

Complete the Australian Family Farm Transition Benchmark

Final Thought 

“The biggest risk in farm succession isn't necessarily making the wrong decision. It's making no decision at all.” 

Succession isn't simply about transferring the farm. 

It's about preserving family wealth, protecting relationships and creating opportunities for the next generation. 

And ultimately, helping the family make it safely to the other side. 

Future Farming Families 

Family-led. Adviser-supported. 

A different approach to farm succession.