Everything you need to know to buy a farm

There are others considering this very issue — concerned not only for the individual farmer aspiring to farm ownership but also for regional and rural towns — who are seeking to regenerate and breathe new life into ageing agricultural communities across Australia. In a world where more than a third of agricultural employees are women (34 per cent of employees), and the nation’s retiring farmers comprise an ageing male workforce, the future of farming and farm ownership looks set to change dramatically over the next decade. Transfers of land ownership and a sharing of knowledge and expertise are needed to keep people in our regions as active participants and property owners. The flow-on effects could dramatically change the way our communities look and operate too, staunching decay and reimagining farming towns for the future.

But first things first. How to find your own farm?

Cultivate Farms is program delivering alternative pathways to farm ownership. Originating in country Victoria in 2016, the program matches retiring farmers with aspiring younger farmers across a diverse range of farming pursuits. Amy Cockroft, the new CEO, speaks with the passion of a convert to the cause. “We believe in ‘good farms, good food and good people’. We know that young people who own their own farms create better outcomes for environmental diversity and land sustainability, and they participate more fully in their rural communities.”

With 30 ‘farm matches’ under the Cultivate Farms belt, the company has walked the talk, delivering novel pathways to property ownership across the country, with a focus on sustainable land development, equity of opportunity, diversity and equality, creativity in regional practice and progressive business management. New conversations are emerging.

There are two main players in the Cultivate Farms paddock: the retiring farmer and the aspiring farmer. For the retiring farmer, the program offers an alternative to selling a property where there are no children interested in succeeding to the land. Cultivate Farms works with retiring farmers to see if there is an alternative to selling up that would work for them. Amy says, “We discuss the retiring farmer’s values and explore what would be a good outcome for them personally. People don’t always know what they want,” she laughs, “but they usually know what they don’t want.”

Cultivate Farms runs a number of programs for aspiring farmers, of whom there are more than 2500 on their books, most of whom are currently working in agriculture but don’t own a farm. “We have many successful participants in their early thirties,” Amy says. “Aspiring farmers are often farm managers already or they grew up on farms, and they want their kids to have that same experience. Having children tends to really bring lifestyle choices into focus.”

Aspiring farmers are matched by Cultivate Farms with retiring farmers. “The most successful aspiring farmers have already done a lot of work in educating themselves, attending Cultivate Farms programs and upskilling,” says Amy. “The more skilled the aspiring farmer, the more likely that they will be put forward for a match, as both we and the retiring farmer can have confidence that they are ready for the opportunity.”

For retiring farmers, succession planning usually starts too late. “The first day of ownership is the day you should start your succession planning,” says Amy. That being said, we’re all human and it is often late in the day before these conversations are initiated. For Cultivate Farms, the questions asked of a retiring farmer start with ‘What is the ideal retirement lifestyle for you?’ Many transition plans can be considered, from training a new farmer, to leasing property, to share farming and more. It’s not just about selling and leaving the farm.

Retiring farmers need to talk to their accountants and lawyers about the structures and arrangements they seek, as Cultivate Farms won’t provide that advice. The Cultivate Farms team will dig into questions around the retiring farmers’ values and details of the current farm productivity and profitability. Once an understanding is gained and the plan devised, Cultivate Farms will take their retiring farmer prospect to their database of aspiring farmers for consideration. A shortlist of interested aspiring farmer matches will be presented to the retiring farmer for consideration. They might like one, or all, or none of the options. The interested parties may be able to contact each other for further discussion and a farm inspection. If the retiring farmer changes their mind or decides it is not for them, that’s fine, too. The Cultivate Farms team will let the aspiring farmer down gently on the retiring farmer’s behalf.

The opportunities available through Cultivate Farms are not only limited to taking over farms in a traditional sense. Creative solutions are possible, and Amy Cockroft comments that many single women farmers have led the way in pursuing alternatives, such as becoming involved in a cooperative on an orchard and horticultural farm, or investing land in biodiversity sanctuaries.

“It’s about relationship with the land and aligning values between the retiring farmer and aspiring farmer, then bringing financial investors on board for support,” says Amy. “Aspiring farmers need to be leveraging their experience, their networks and contacts. Most have some savings of their own. They need to show management skills and often the successful ones have demonstrated they have ‘skin in the game’.”

How to fund all this? Aspiring farmers need to find and bring their own financial investors to the table where possible, explains Amy. Sometimes the retiring farmers can offer a framework for the relationship as an investor. Other solutions are finance from a bank, or investment from family members keen to support the initiative, or a combination of sources. The incoming farmer can raise funds to buy the assets of the property from the retiring farmer over time, from the profits made while running the property. “Transitions need time to occur,” explains Amy. “That’s why it is better to start earlier, while you’re perhaps not ready to retire, than later when you are ready. Retiring farmers have so much to offer and we want to support that. Sometimes when retiring farmers move off-farm into town they can have poor health outcomes over time, so we want to avoid this where possible.”

Options may include maintaining a life interest in the property to preserve the lifestyle of the retiring farmers, or being able to visit the property during the week and oversee different tasks.

The benefits of the program extend beyond the participants themselves. It’s all about rejuvenating and energising regional communities. “Older people will leave an area if they can’t access the services they need,” says Amy. “But it’s a chicken-and-egg scenario, because if they leave, then there’s no need for the services. Regional communities need more than fly in/fly out workers and large corporate interests owning properties. Keeping people in rural areas with work they are passionate about, keeps kids in schools, which keeps the sports grounds open and drama clubs operating. It keeps shops open. Every one farmer generates seven employment opportunities in their community. These programs can have a real impact on local communities and schools.”

Australia’s ageing agricultural workforce needs new talent. According to an InFocus report by ANZ Bank in October 2020, with “the median age of the entire agricultural workforce at 49 years of age, there are likely to be a growing number of vacancies in the sector. On current trends, there are likely to be at least another 48,000 jobs in the Australian agriculture sector — of those, 27,000 are likely to be women and 14,000 of those in management positions.” It is eye-watering to think that the employment situation could get worse before it gets better, even with an uplift in immigration. Keeping people and families on the land (rather than just large corporate interests and superannuation companies) is the key to growing communities. Arming new farmers with the knowledge and experience of the older generation lays the groundwork for successful enterprises, in turn leading to growth in communities and regional development.

Instead, Cultivate Communities talks to community leaders about new ways of progressing to retirement and investing in the local community. These leaders want to keep their schools open and keep the local doctor and professional services in the town. They realise they need young people to come in and bring fresh energy and enthusiasm. They also recognise the need for the older generation to share their experience and wisdom so that the land can continue to be cared for, knowledge retained, and communities rejuvenate for the years ahead. As a trusted voice, sometimes they can bridge the gap and get the message across for the benefit of the community.

This program was also run recently in Colac, Victoria, where 92 per cent of farmers are aged over 60 years, and are mainly running dairy farms. There is a crisis of young farmers leaving the dairy industry because there are no career opportunities, which is, in turn, having an impact on the local community. Cultivate Farms provided information to local leaders to show ways for the older generation to impart their knowledge and provide pathways to retirement, other than just selling up, so their experience is reinvested into the local community rather than being lost. The hope is that these opportunities will keep young people in the area.

More programs like this may be run in the future. Of course, timing is everything.

“Recently we had two brothers in their seventies come to see us. Joint owners of a property, one wanted to sell the farm, the other didn’t. They wanted to explore options and were forced to do so for health reasons. Their kids have forced the issue too. What to do? If only they’d come to us sooner,” Amy explains. And she’s right. Whatever you’re planning to do upon your retirement, your succession planning needed to start yesterday.

Because it’s not just about the individual farmer, or farm. As members of regional communities, we’re all intricately entwined, woven into the fabric and story of the place. We rely on this connectedness in times of fire and flood. It’s also the structure that can sustain and support a community to grow, or to wither. One farm can make a big impact in a district, for good or bad. We’ve all seen it happen.

If we want to keep our regions strong and with a growth mindset, then creative and timely approaches to the transfer of assets and knowledge across generations are needed. Equally, if you’re looking to get onto the land, there’s more than one pathway to success. Explore new and creative options and start conversations. Do your research. Chase dreams. Be stubborn. Put your hand up.

Find out more at cultivatefarms.co

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