The Great Wealth Transfer

In May 2025, Rabobank issued a White Paper Exploring the challenges and opportunities facing the primary sector regarding succession planning. The key theme – we need to step up the succession conversation.

Over the next 10 years, more than half of all New Zealand farm and orchard owners – around 17,320 farmers – will hit retirement age. Based on current average land values, this is likely to be New Zealand agriculture’s largest-ever intergenerational transfer of wealth, involving more than $150 billion of farming assets that will depend on a successful succession process. Yet, the data collected by Rabobank this year shows that only one-third of farmers are prepared with a formal succession plan. The paper identifies that the industry is not transition ready.

As New Zealanders, the emotional tie to our land is strong. However, succession planning in farming is not just about passing on land or assets. It is about ensuring the long-term viability of both the business and the family relationships that underpin it.

The obstacles and financial burdens of continuing the transfer of the family farm inter generationally are under significant pressure.

The reasons for this are varied

• The affordability of increased capital costs to enable children access to ownership whilst ensuring Mum and dad have money to enjoy their well earnt retirement.
• Not having children to pass the farm onto,
• having too many children to divide the farm assets equitability
• children who do not choose farming as their vocation

The discussions surrounding succession are immensely personal. Succession is a process that requires open and collaborative discussion to develop over a period of time rather than in a pressure cooker. Starting succession conversations early creates more opportunities and reduces risks. Early planning allows families to explore new business models, diversify income, and prepare for unexpected events like illness or death.

It has always been the case that there is no off-the-shelf solution for most families. The Rabobank paper highlights that the industry needs to take a more deliberate and entrepreneurial approach to succession. Honest discussions about goals, finances, and fairness are essential, as is recognizing the emotional weight tied to family land and legacy.

The 1990’s saw the emergence of new forms of ownership and management structure in the primary sector such as equity partnership, “mega” farms and multi contract sharemilkers. From this point of time, effective business systems are required to compete as a modern farming enterprise. The Rabobank paper identifies the increasing scale and businessification of farm businesses in New Zealand as coinciding with a shifting and broadening of conversations on succession with a number of new and innovative succession models being adopted to help farming families stay connected to their land.

Ultimately, the message is that delaying succession only narrows options and increases stress. Successful transitions require a deliberate plan, honesty about financial capacity and capability, clarity about control, and respect across generations.

Anderson Lloyd has significant experience in the rural sector and is happy to assist in any discussions involving farm succession to help you evaluate existing solutions and contribute to new ones. The key take home – planning early is critical.

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