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There is no denying that farming is the backbone of New Zealand, with food being a basic need that is provided for local consumption as well as for international markets. With the country’s abundance of land, New Zealand is the perfect place to make farming a successful business. However, passing on farms to the next generation can be a struggle. Most farms are family-owned and primarily managed by older farmers. While they may wish to pass ownership to younger family members, they usually have limited knowledge about how to do so.This is why succession planning – the passing on of the family farm – is an important issue for New Zealand agriculture and a topic raised frequently by farmers in everyday conversations. It is also an issue that is often left in the ‘too hard basket’ and postponed for years by some farming families. Delays in making decisions about succession planning are not only unnecessary but can be potentially detrimental in some cases. The sooner conversations about succession planning are brought into the open and a plan made, the better for all parties.To have a long-term sustainable farming industry in New Zealand, it is best to have farms pass efficiently from one generation to the next.The number of farms in New Zealand has declined from 70,336 in 2002 to 47,000 in 2022, a reduction of 23,336 farms in 20 years. However, while the number of farm holdings has dropped, the same cannot be said for their size. On average, farm size has grown from 222 Ha in 2002 to 279 Ha in 2022. Along with larger farms, some consolidation has been carried out with land on town boundaries being re-zoned and developed into residential areas in some cases.Since there are fewer farms and they are now often larger land holdings they are becoming more difficult to manage and develop. Additionally, the compliance needed for the day- to-day operation of farms gets more complex every day.The prices of farms have risen over time and so have the debt levels incurred by farm owners.It is clear that now is the best time to develop a structured approach to your farm succession planning. Otherwise, it will become increasingly difficult to pass on the farm to the next generation.Aside from being a meticulous process, succession planning needs to be done in a sympathetic way. It should not be handled the way big corporations handle their succession process and it is important to appreciate that farms are usually family-run businesses and the family needs to remain united outside of the business. It is imperative to consider the needs, values, expectations and goals of each family member. While this does not necessarily mean that each member’s requests are granted, it is important to discuss succession planning objectives with the whole family and get an understanding of each person’s priorities. Going into the process of succession planning, family members need to keep an open mind and allow for some flexibility throughout the planning and negotiating process. It is important to note that a profitable farming operation is the aim for now and the future so a win, win approach is very important to succession planning for all generations.