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By Georgia Checkley. Checkley is a Bachelor of Agricultural Science student at Lincoln University
Will the New Zealand agriculture sector continue growing or is it set to decline?
The general theme of the Primary Industries New Zealand (PINZ) Summit was that agriculture is absolutely humming right now. As Micheal Every from Rabobank stated, 鈥渢he milk price is good, the red meat sector is on its way upwards, the sector is humming鈥.
Ray Smith, who delivered the Ministry for Primary Industries address at PINZ as the director-general of the MPI, added to this narrative. He said that New Zealand鈥檚 agriculture has experienced exponential growth in recent years as exporting goods reach nearly $60 billion. From meat to milk, the sector is on the rise.
But with prosperity comes pressure, as Rabobank CEO Todd Charteris pointed out. Speaking at the event Charteris said 鈥渉alf the current sector is set to reach their gold card in the next 10-15 years鈥.
This represents the biggest generational succession New Zealand agriculture has ever faced. He also shared alarming figures highlighting that only 23% of families have a well thought out succession plan for the farm, 17% have spoken of the topic and a shocking 50% of families have not even mentioned succession.
Succession is not talked about enough. It is an awkward conversation many avoid, putting it in a box and sometimes that box is only opened when the inevitable happens. Without clear succession plans nationwide we look to see a decline in productivity across the agriculture sector.
Through differing management styles, beliefs and goals for the farm this can lead to financial instability. Succession is not just a business transaction, it is deeply emotional; there is no such thing as a successful succession if no one is talking afterwards. So why do we avoid this awkward topic? Why are we so stubborn? Why don鈥檛 we start these hard conversations early on?
Perhaps it is all we know as Kiwis. There is a lack of education around succession and the consequences of avoiding it. Avoiding succession does not just jeopardise productivity but can create assumptions around who gets what.
Many farms are built from generation to generation, carrying legacies that can be destroyed by unclear communication. New Zealand farmers need to understand we are where we are today because of farming. We cannot continue to grow if we don鈥檛 have these hard conversations.
The future of New Zealand鈥檚 agriculture sector lies in the hands of the next generation. Without a clear, concise conversation early on, maintaining the same level of productivity will be near impossible. There needs to be trust between the generations, a clear pathway for the next generation and above all there must be mentorship. There should be connectivity between the generations, the sharing of knowledge to help yield a better more productive and sustainable practice here in New Zealand.
Most of all, Kiwis need to understand the only way we will stay ahead of the agri-sector and continue to farm in a way that will sustain many generations to come is by upholding and growing current legacies. We need to start talking about succession and we need to do so now. Let鈥檚 strive to unite and farm in a way that is smarter not harder, continuing to grow our sector beyond its limits.