Planning for retirement of partners in the partnership

dinderleat

Member
Location
Wells
Currently in partnership with my parents, we all get on well , we are clear on our aims and goals for the business and are all trying to push the business in the right direction.
Luckily I have a joint tenancy with my father until I'm 65 (currently 29 dads 58). On 470 acres tenanted 50 owned. We milk 170 wean everything and fatten beef cattle and rear our own heifers.

What I want to do is setup a possible plan of financial retirement/retirement for my parents of which will not leave me needing to borrow a large amount in order continue the business.

We have just bought 50 acres jointly of which upon needing could be sold to partly fund their retirement.

What's people's thoughts on tackling this subject/issue?
 

dinderleat

Member
Location
Wells
Always a torrid she subject. First thought doesn't sound a lot of animals on a big acreage.

450 animals in total, grow 60 acres of wheat and 60 acres of maize 100 acres of grass you can not reseed of which is in hls.

But yes I would love a farm with 500 acres of productive land, but then again it's profit at the end of the day and hls pays me to do nothing except keep it tidy
 

David.

Member
Mixed Farmer
Location
J11 M40
What do your parents want, are you currently discussing it with them, and do they currently live in the farmhouse.
Do you have siblings to be considered?
I ask this because if they perhaps already have a place to move to, and only need/want drawings until they die, and you have nobody else to pay out, that would be a lot different to having 3 siblings to consider financially and having to buy a place for your parents on top; and all off a tenanted farm:eek:
 

dinderleat

Member
Location
Wells
What do your parents want, are you currently discussing it with them, and do they currently live in the farmhouse.
Do you have siblings to be considered?
I ask this because if they perhaps already have a place to move to, and only need/want drawings until they die, and you have nobody else to pay out, that would be a lot different to having 3 siblings to consider financially and having to buy a place for your parents on top; and all off a tenanted farm:eek:

Yes talking with parents. Yes there are 3 other siblings but we do all get on which are not interested in the farm .

There are 2 farmhouses on the farm which we live in one each and parents own a couple of houses .

Just was interested what others did that was all when sorting this out?
 

Spud

Member
Arable Farmer
Location
YO62
I'm with you re trying to avoid big shocks down the line. Far better to have a bit of financial 'tweak' to deal with in your 30's and 40's than 50's and 60's (essentially while you have 20+ years in front of you to soften the pain.

Do you have a profit share set at a sensible level? Its one way to grow your share of the business (ie for your efforts to reward you rather than your siblings quite so much) which reduces the amount you need to find down the line. If your parents live to a big age, it'd be normal to lower their profit share (and raise yours) as they become less able to do the physical work, and you take more responsibility. The longer this continues, proportionately at least, your part of the business increases at a greater rate than theirs.
Tax does need careful consideration.
 

franklin

New Member
Yes talking with parents. Yes there are 3 other siblings but we do all get on which are not interested in the farm .

Unless you are talking about it as a family, ie including siblings at all stages, dont expect them to remain un-interested as unless they get a fair deal then there will be serious, big-time, expensive trouble. Especially if any sibling is married / with children as the husband-in-law or daughter-in-law will know *exactly* what everything is worth.
 

Netherfield

Member
Location
West Yorkshire
Unless you are talking about it as a family, ie including siblings at all stages, dont expect them to remain un-interested as unless they get a fair deal then there will be serious, big-time, expensive trouble. Especially if any sibling is married / with children as the husband-in-law or daughter-in-law will know *exactly* what everything is worth.

You'd better believe it, and 15 years later it's still not fully resolved.
 

dinderleat

Member
Location
Wells
I'm with you re trying to avoid big shocks down the line. Far better to have a bit of financial 'tweak' to deal with in your 30's and 40's than 50's and 60's (essentially while you have 20+ years in front of you to soften the pain.

Do you have a profit share set at a sensible level? Its one way to grow your share of the business (ie for your efforts to reward you rather than your siblings quite so much) which reduces the amount you need to find down the line. If your parents live to a big age, it'd be normal to lower their profit share (and raise yours) as they become less able to do the physical work, and you take more responsibility. The longer this continues, proportionately at least, your part of the business increases at a greater rate than theirs.
Tax does need careful consideration.
Yes have been on a 1/3 profit share since I came home .
Thats what I was thinking say pay a fair profit share when they retire or pay a lump sum
 

dinderleat

Member
Location
Wells
Get on and buy your parents out now,I bought my dad out at 27,it was the best days work I ever did.

Don't get me wrong the partnership is working fine everyone is very much a major part of the business.

But yes it would give me 35 years to pay of any loans
 

eulb

Member
Don't get me wrong the partnership is working fine everyone is very much a major part of the business.

But yes it would give me 35 years to pay of any loans

It made me hard up but I bought and paid for mine in 12months,fortunately my dad had sold the milking herd so I only bought what I could afford,I had to buy my dads tenants improvements but once done that was it,having 4 siblings meant this was the best way.

Look on the bright side you won't have quota to buy,it was my biggest cost.
 

milkloss

Member
Livestock Farmer
Location
East Sussex
A few things to establish I think:
When are they going to retire? What will they do? Will they die with their 'boots on' and if they retire do they want money or will have money when/if they need care. Pensions the farm has paid for? Will they move house and leave with a spare one on the farm (iht) and are the other house part of the business (bpr)?

Sorry, it can all get a bit morbid but forewarned is forearmed as they say!
 

NI agri-food stakeholder groups discuss climate change bill with committee

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Written by Richard Halleron from Agriland

The Livestock and Meat Commission (LMC) recently submitted oral evidence to members of the Stormont Agriculture, Environment and Rural Affairs (AERA) committee on the content and potential impact of the Northern Ireland Climate Change Bill (No.2).

This draft legislation was recently introduced to the Northern Ireland Assembly by the Department of Agriculture, Environment and Rural Affairs (DAERA) in conjunction with agriculture minister, Edwin Poots.

“We were accompanied by representatives from a wide range of food industry bodies, including the Northern Ireland Meat Exporters’ Association,the Ulster Farmers’ Union [UFU], Northern...
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