Early succession planning gives peace of mind for farming family

Find out how tenant farmers Lisa and Simon Edwards approached succession planning with their sons.

Lisa and Simon are tenant farmers on a 950-acre arable farm near Ormskirk, Lancashire, growing cereals and potatoes. Their younger son, Cameron, works with them, while his older brother, Ben, lives in New Zealand.

When Ben got married and decided to stay in New Zealand, Lisa and Simon knew it was time to make decisions about the future.

At the time, they were both in their fifties, with Simon holding an Agricultural Holdings Act (AHA) tenancy with one generation left to claim.

Talking about how they initiated the conversation, Lisa said:

“You can’t discuss business and personal plans like this over the phone. We had to wait for Ben to come back.”

On his next home visit, the family sat down and had an honest discussion, where each set out their hopes and plans.

These were incorporated into an overall plan which would allow Lisa and Simon to gradually hand over control of the farm to Cameron and achieve their goal of semi-retirement in their mid-60s.

Cameron, who has worked on the farm since he was 13, is keen to take over the business in due course, while Ben is happy to concentrate on his new life and family in New Zealand.

The resulting agreement is reviewed regularly and both wills and powers of attorney were drawn up to reflect this.

These will be reviewed every five years to make sure they still cover everyone’s needs. Lisa added:

“We’re very much thinking what if the worst should happen and we die tomorrow, that way we can plan so that it’s as fair as possible to all involved.”

Simon and Lisa were very aware that for Cameron to claim succession on the tenancy he needed to be part of the business for seven years.

In 2021 he was made a director with a small share and given responsibility for specific areas of the farm business. As the years go on, his responsibilities will gradually increase as Simon and Lisa start to step back.

In addition, during a rent review with the landlord they discussed the possibility of Cameron claiming succession before Simon’s death. The landlord was open to negotiating a new agreement that would include Cameron.

How easy is it to watch their son doing things his own way after 40 years in the driving seat?

“You have to bite your lip! It’s probably hardest for Simon to relinquish control, as he’s been in charge for so long.”

However, the couple recognises that they must let Cameron make his own mistakes – it’s the best way to learn.

Based on her experience, Lisa's top tips for making succession planning a success include:

• The earlier the better – don’t be tempted to put it off
• Ideally, start to plan when your children are young adults
• Get everyone together in a neutral setting for the first discussion
• Plan for the worst – hopefully it won’t happen, but it's better to be prepared
• Be honest and keep communicating
• Nip problems in the bud – talk them out

Simon, Lisa and Cameron Edwards