Securing your farm’s future: how Craigs supports succession through off-farm investment 

We understand that transferring the family farm is more than just a legal or financial handover – it’s the continuation of a legacy. It’s about maintaining a deep connection to the land, preserving family identity, and ensuring the viability of rural communities. For many farming families across New Zealand, this transition is looming large. 

According recent research*, more than half of New Zealand’s farm and orchard owners will reach retirement age within the next decade, representing $150 billion in asset transfers. But while the numbers are big, the emotional and practical realities are just as significant. Without clear planning, this handover can become fraught with uncertainty, family tension, or even the loss of the farm altogether. 

Start the conversation

As investment advisers, we’ve seen how powerful early conversations can be in shaping successful farm transitions. Yet only one-third of New Zealand farmers have a formal succession plan in place. That leaves many families vulnerable to unstructured transitions – where timing, expectations, and relationships often collide. 

Money and land can be sensitive topics, especially when generations have poured their hearts into the same soil. But that’s exactly why these discussions can’t wait. Start normalising conversations around ownership, responsibilities, and future plans. This isn’t just about finances, it’s about protecting your family’s relationships and the business you’ve built. 

Bridging the generational gap 

One of the biggest challenges many farming families face is a generational mismatch in aspirations. 39% of farmers say none of their children are seriously interested in taking over the farm*. That’s a confronting figure, but it’s not the end of the road. 

Succession today may look different than in the past. For some families, new ownership models, such as hybrid structures, share farming, equity partnerships, or Māori incorporations are emerging as practical solutions. These models allow families to retain a connection to the land while bringing in new energy and expertise. 

Timing and education matter

Don’t wait for a major health issue or life event to prompt action. Succession works best when it’s a gradual process, not a rushed event. Introduce the next generation to the realities of farm ownership early, include them in decision-making, introduce them to your off-farm advisers, and educate them on the financial, legal, and operational responsibilities that come with the land. 

Tackling financial barriers 

Even when the next generation is willing, financial hurdles can remain. While research* notes that barriers to farm ownership have plateaued, challenges persist due to increased farm scale and borrowing requirements. Rising costs of land and the capital required to take on a modern farming operation can make succession seem out of reach. 

That’s why succession planning must include financial resilience. It’s not just about passing on land, it’s about ensuring the next generation has the tools to succeed. This means thinking early on about issues like debt servicing, ownership structure, off-farm family members, and income streams. 

How Craigs can help 

At Craigs, we help farming families build diversified off-farm investment portfolios that grow alongside the farm business but remain separate from it. This strategy helps in multiple ways: 

• Reduces pressure on the farm to fund retirement 

• Enables diversification and de-risking by not having all assets tied up in the farm 

• Enables more equitable distribution among family members not taking over the land  

• Provides an alternative income stream for the retiring generation.  

A well-constructed investment portfolio can provide the freedom to step back with financial security, while giving the next generation space and flexibility to take the reins. 

Plan for legacy 

Succession planning involves managing expectations. Open conversations help avoid misunderstandings around inheritance, land use, or equity splits between siblings. Some children may stay on the land, others may not, but all deserve to understand how and why decisions are being made. 

Seek expert guidance 

You don’t have to navigate this alone. In fact, bringing in independent advisers like Craigs Investment Advisers as part of your off-farm team can make a world of difference.  

Farm succession is about more than retaining or transitioning land ownership, it’s about preserving legacy, supporting intergenerational opportunity, and ensuring that New Zealand’s farming backbone remains strong. 

With expert guidance and a clear financial strategy, you can pass on more than just land. You can pass on opportunity, stability, and set your family up for generational success. 

Market Insights enewsletter

Keep up to date with our fortnightly Market Insights enewsletter. Our research team provide timely and regular commentary and analysis on market developments, understanding investment jargon, and the impact of current events.

Subscribe Now