12 | nzdairy DAIRY PEOPLE » Duncan and Jan Smeaton Passing baton onto the next generation Karen Phelps Farm succession planning is never easy but Duncan and Jan Smeaton, who farm in Waihi, Coromandel, have started the process with son Andrew and wife Hollie recently purchasing a 50% share in the farm company, which owns the herd and associated plant machinery. “It feels a bit sad and spooky but it’s recognition of what needs to happen,” says Duncan acknowledging the fact that for farmers it can be difficult to think about letting their farm pass on. “Farm wealth is no use in the cemetery so we have to be mindful of succession and Andrew and Hollie’s ability to purchase the rest of the farm when we go. Duncan and son Andrew. It’s about making sure the process is as equitable as possible for all our children as well as making it possible for the ones who want to carry on the farm. It’s a difficult and delicate balancing act.” The Smeatons have looked at what other farmers have done and had advice from succession planners, lawyers and accountants. “We’ve taken a strategic and thoughtful approach to a slow and difficult process. I also had the benefit of a similar process decades earlier when Jan and I purchased a smaller part of our current farm off my siblings. We made some mistakes, emotions are involved and none of us is prepared for navigating this stuff. It takes patience, persistence and time to think the process through. It’s about communicating and working hard to get a win-win situation where everyone feels reasonably happy at the end.” He says that although years ago it was possible for him and Jan to purchase a smaller farm and herd all at once it’s more difficult for the next generation with bigger farms: “In my son’s case he’s biting bits off it at a time. The current family farm is a 190-hectare property that milks a herd of 500 Jersey-Friesian cows split between two dairies. Duncan says while their best country can produce at least 1100kg MS per ha, that is offset by their tougher country, which produces down to 600kg MS per ha. They send away 160,000kg MS in a good year. The farm is pasture-dominant System 2 and has recently moved to once a day milking from 24 December. That’s been a really good move and makes me wonder why I used to milk twice a day to the end of the season. I must have been a masochist,” he says with a laugh. “A few years ago we were going PAEROA egional ransport 2020 td REGIONAL TRANSPORT • LIVESTOCK CARTAGE 021790296 rtlstock@gmail.com 25 Willoughby Street, PO Box 11, PAEROA | 6 Rosemont Rd, WAIHI PHONE 07 862 8643 | EMAIL kevin@lynchandpartners.co.nz Lynch & Partners are pleased to be associated with the success of Duncan and Jan Smeaton to once a day in the middle of January prompted by droughts we’d been experiencing. Then we thought for two to three weeks of extra twice a day milking why not stop before Christmas as it makes Christmas and New Year much more pleasant for us and our staff. It’s also good for the herd and we get fewer foot problems, somatic cell count is manageable and cow condition at the end of the season is better which means better mating and reproduction subsequently. It also helps with staff retention. For example two staff milk in the morning but only one staff member is required to shift the cows in the afternoon and the other staff can have the afternoon off.” Duncan admits it is hard to think of passing the farm on one day but is happy the family has started the process of succession: “You work hard to accumulate this asset and then you have to get your head around letting it go. Don’t underestimate the sensitivities around these matters and how much awareness and patience are required. It’s not a one size fits all scenario.”
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