The implications of utilising farm forestry for the intergeneration transfer of assets in family-farm succession

Abstract

In moden-day rural society, for farms to be retained within families it is becoming increasingly difficult when assets are distributed evenly between children while also providing for the parents' retirement.

This report examines the implications of utilising farm forestry for the intergeneration transfer of assets in family farm succession. The concept of farm succession is explored in order to ascertain a successful process for intergeneration transfer of family farm assets, Farm forestry is investigated in terms of its benefits to crops, irrigation and livestock in order to ascertain its future role in succession planning for the family farmer. The benefits of investment in farm forestry, and legislation affecting its utilisation, are considered. Mechanisms which enable farm forestry to be utilised in farm succession are identified and discussed, with examples given. By examining the above points this report shows that when farm forestry is combined with the various mechanisms available, effective planning, and good timing, it is an effective tool in the intergeneration transfer of family-farm assets.