Choosing the Successor in New Zealand Family Farms

Abstract

Farmers in family businesses are often interested in generational succession. Yet farming parents are often unclear about the process of choosing a successor. We undertook a grounded-method study of the succession process among New Zealand farm families. The process included five stages: watching for interest, reducing the pool of eligibles, assessing commitment, compensating the others, and placing the successor. We make suggestions for future research that will test the model of succession, and for use of these findings by farm families who are contemplating family succession.