Succession. It’s a word that carries weight in any farming family. For some, it sparks hope and continuity. For others, it's a can of worms best left on the shelf a little longer. The latest Rabobank New Zealand White Paper, “Changing of the Guard,” pulls back the curtain on what succession really looks like across our rural communities — and what’s coming next.
The White Paper explores what may be the largest intergenerational transfer of agricultural wealth in New Zealand’s history — upwards of $150 billion in farm assets expected to change hands as over 17,000 farm owners reach retirement age in the next 10 years. Yet, Rabobank’s research suggests just one-third of farmers currently have a formal succession plan.
So what’s holding us back?
The Emotional Backbone of Succession
Farming has always been more than just a job. It’s a way of life. It’s where kids grow up rearing calves and lambs, and learning how to drive. And that deep personal connection — while beautiful — can make succession all the more emotionally fraught.
The report reminds us that succession isn’t a single event, but a long-term process. One requiring honest conversations, trust, and a willingness to shift roles. As one young farmer put it: “I’m the fifth generation to walk these hills… It’s an insanely cool connection to the land, but it comes with pressure.”
That pressure is a two-way street. The older generation often wrestles with letting go, uncertain how their financial future will be secured if they pass the reins and who they will be, if not ‘The Farmer’. The younger generation is often burdened with high entry costs, sibling dynamics, and a system that doesn’t always feel accessible or viable.
The Greatest Concerns Over the Next 10–15 Years
From Rabobank’s research, three major challenges stand out:
1. Affordability & Financial Barriers
Topping the list, the sheer cost of getting into farm ownership. One-third of farmers said high entry prices and financial constraints were the biggest barrier to succession. With average farm mortgages sitting around $4.7 million, it’s easy to see why.
Wage growth for farm employees has tracked slowly alongside inflation, but many would-be successors are still facing decades of debt and high capital requirements. Despite steady incomes, most farm workers still earn well below the national median — and few can build the capital needed to buy in.
Nothing, though, will overcome viability issues. Small-scale farm businesses that have not scaled up and/or created an off-farm investment portfolio will struggle to meet the financial needs for all to enable a successful transition.
What’s the way forward?
Building on the capital base created by each generation has to be the primary motivator. A strategic growth and investment plan is crucial to enable a viable transition.
Creative ownership models are emerging. Equity partnerships, hybrid structures like Spring Farms, and staged ownership transfers help bridge the gap.
2. Lack of Interest from the Next Generation
Roughly 39% of farmers surveyed said they have no children seriously interested in farming — a worrying trend. However, Rural Coach often see children declaring they do have an interest when asked — they didn’t know if it was possible. Another good reason to begin the conversations early!
Developing a greater level of insight into the farm business, investing in on-farm leadership, creating clear progression paths, and fostering a culture of purpose can reconnect young Kiwis to the land.
3. Regulatory and Land-Use Pressure
Government policy and climate-related regulations are adding complexity. From emissions rules to overseas investment changes, succession planning must now factor in shifting land-use patterns and increased uncertainty.
Overcoming the Hurdles: What Can We Do?
It’s easy to feel overwhelmed. But the paper — and many of the featured farmer stories — highlight some hopeful and practical steps forward.
1. Start Early
Almost all the families interviewed said they wished they’d started earlier. Beginning conversations in your 30s or 40s (not your 60s or 70s) gives everyone time to prepare— financially and emotionally. This is strategic planning at work, a clear and shared view of both the goals and the horizons. The greater clarity and longer you have to reach the goals, the greater the likelihood of doing so.
2. Communicate, Communicate, Communicate
Honest, messy, and often emotional conversations are necessary. The most successful succession stories featured families who talked regularly and involved everyone from the start — on and off-farm siblings alike. All the while, willing to accept some compromises will likely need to be made by all parties.
External facilitators, accountants, and advisors (yes, like Rural Coach!) can help create a safe space for these discussions and keep everyone focused on shared outcomes.
3. Business vs Family
Yes, succession should stack up financially. But it also needs to acknowledge emotional realities. As Simon Webb of Webb’s Fruit put it, “Once you take the emotion out of it, you realise everyone wants the same outcome.” Clear expectations, flexible structures, and a dose of empathy go a long way.
4. Redefine Ownership
Ownership today doesn’t always mean buying 100% of the farm outright. More families are embracing part-ownership, lease-back models, and management roles with future equity options. These enable the next generation to step in without risking the entire ship — and give retiring owners peace of mind that they’re not left exposed.
Despite the challenges, Rabobank’s White Paper reminds us: farming in New Zealand isn’t a sunset industry. It’s evolving. With brave conversations and thoughtful planning, the next generation of New Zealand farmers will be ready to take the baton.
Let’s get the conversation started — remain open to possibilities and keep it going.
If you’d like support with Succession Planning or facilitation, reach out to the team at Rural Coach. We’re here to help farming families and businesses navigate the changing of the guard — with clarity, care and confidence.
Confident Farmers Achieving their Dreams
*Acknowledgement: Rabobank New Zealand – “Changing of the Guard – Stepping up the Succession Conversation in New Zealand Farming" (White Paper), click here to download a copy.
By Sarah Barr
