Managing the transition from the single family farm to multiple property ownership: pitfalls and recommendations

Abstract

The structure, size and complexity of managing a farming business in New Zealand is ever increasing. A growing trend is multiple farm property ownership by a single individual or family. This dissertation examined the issues faced by farm owners when making the transition from single property ownership to multiple property ownership. The research was based on a number of interviews of North Island based dairy farmers who have made this transition. When looking at the key problems encountered by farmers who owned multiple properties these problems can be broadly categorised into four areas: strategic planning, business management, human resource management and personal/lifestyle issues. Such issues included lack of distinction between governance and management, lack of systemisation, and logistical problems when dealing with large numbers of employees. If these issues are not addressed this can lead to high stress levels, poor physical or financial performance, staff conflict, staff turnover, lack of progress, poor decision making, loss of control, and loss of enjoyment of the farming business. Recommendations for those contemplating expansion to other properties have been made, focusing on the four key areas. Expansion of the farming business by way of purchasing additional properties is not for the faint hearted. It can add considerable stress, debt and workload to an often already busy lifestyle. But if the required degree of thought, planning, effort are put into the expansion process the resulting benefits can be considerable.