Practical Succession Planning for Family Farms

Jim Phillipson, Rendere Trust Founder and Strategic Director, on succession planning

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Succession planning can be a difficult conversation for farming families, but avoiding it can put the future of the farm at risk. Jim Phillipson, who is the founder and strategic director of Rendere Trust and based on Gunaikurnai Country in Gippsland, Victoria, offers a pragmatic approach based on clarity, structure and long-term sustainability. We were fortunate enought to see Jim, alongside regenerative farmer Tanya Massy, at the GROUNDED Australia conference unpacking succession planning and alternate pathways.

Here are his key insights on making succession planning work.

Find a Neutral Facilitator

A neutral third party can be invaluable in guiding discussions. Like an insurance agent, they provide an objective perspective, keeping emotions in check and ensuring decisions are based on the farm’s best interests. Their role is to speak directly with the title holders—often parents—capture discussions, and begin formalising agreements. As Jim puts it, "A third party isn’t there to take sides; they’re there to be brutally honest. Their job is to ask the tough questions and ensure everyone is clear on the outcomes."

Keep Initial Conversations Small

While many assume the whole family needs to be involved from the start, Jim suggests otherwise. Those named on the property title are the key decision-makers. Keeping initial conversations limited to them can help avoid unnecessary complications and make progress easier. Once a framework is established, broader discussions can follow.

Set a Defined Timeframe

Succession planning benefits from a clear timeline. Jim recommends using a seven-year window, breaking it down into three, five, and seven-year goals. This timeframe is long enough to allow structured planning but not so far off that it leads to procrastination. He suggests using a milestone, such as 2030, to make the planning process more tangible: "You want a timeframe that’s long enough so there’s not anarchy, but not too far away that you procrastinate."

Prioritise the Farm Before the Family

A common mistake in succession planning is focusing on individual family members first. Instead, Jim encourages treating the farm as its own entity. This shift in mindset can encourage long-term thinking, ensuring the farm remains viable for future generations rather than being divided up or sold off. "The number one thing to do is change the dynamic. Take the conversation to fresh ground and move away from established positions," he advises.

Consider Alternatives to Equal Shares

Equal division among children isn’t always the best option. Instead, families might explore models where the farm is placed into a protected entity, ensuring its long-term viability while providing income for retiring parents. This approach could prioritise the sustainability of the farm rather than short-term financial gains. Jim often sees this working well: "Mum and Dad can enjoy some income from a lease, rent, or share farm agreement. If the farm is debt-free and has good economic, environmental, and productivity sustainability, it will generate real money—often more than they’ve ever seen before."

Act While You Have Control

Jim emphasises that succession planning is only possible while you have decision-making power. Waiting too long means losing control over what happens to the farm. Formalising agreements early can prevent disputes and ensure a smooth transition when the time comes. "You’ve only got control while you’re alive. Pretty soon, you’ll be dead, and your ability to influence what happens to the farm will be gone."

Succession planning doesn’t have to be a difficult or contentious process. By focusing on structured decision making, engaging a neutral facilitator and planning with the farm’s longevity in mind, families can create a succession plan that supports both the business and the people involved. The key is to start early, set clear goals, and consider decisions that serve the future of the farm, not just the present generation.

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