Legacy and leadership - succession planning for agribusinesses

This article was originally written by BDO for Fresh Source Magazine’s Winter edition in August 2025, published by Brisbane Markets Limited.

In Australia’s agribusiness sector, where family, land, and enterprise are deeply intertwined, succession planning is more than a financial or legal exercise. It is the strategic intersection of business continuity, intergenerational wealth, and shared values. For family businesses, the question is not simply who will take over, but how the transition will sustain both the enterprise and the family behind it.

Rethinking succession

Traditional succession models often have a narrow focus on ownership transfer. Yet demographic shifts, blended family structures, and new operational complexities mark this view as incomplete. Effective succession planning must address leadership development, family governance, and long-term value creation.

BDO’s family enterprise and agribusiness partners specialise in supporting family farming businesses through this process. One of the tools they use is the 4L’s framework (Barrett & Moores 2003), detailed below, which adds structure around an individual within a multi-generational family. Once defined, this structure helps to articulate roles and responsibilities and supports their development.

Learning business

The up-and-coming generation is encouraged to develop a deep understanding of business in general, including operations, financials, and market dynamics. This is particularly critical in agribusiness, which has its own unique set of challenges, such as tight margins, resource scarcity, commodity cycles and many other macro factors like weather and market conditions.

Learning the family business

This step includes learning to effectively manage the ‘five capitals’ of family enterprises: Human, intellectual, social, ethical and financial capital. Every family business has its own culture, history, relationships and informal rules. Understanding these dynamics is essential, and gaining the opportunity to learn the unique aspects of family farming business is key for any member of a multi-generational business.

Learning to lead

Leadership is not conferred by inheritance. It must be earned through experience, mentorship, and accountability. Structured development pathways can help emerging leaders build the skills and confidence they need, such as board participation or external work experience.

Learning to let go

For patriarchs and matriarchs, succession can involve a shift in identity. Letting go does not mean stepping away entirely. It is about redefining their role from operator and day-to-day decision maker to mentor. This phase is about creating legacy by passing on knowledge that guides younger family members to learn business, learn the family business and learn to lead.

Responding to the times

From blended families and complex estates to career divergence and longevity, it’s important to ensure that succession planning reflects the lived realities of modern families. Succession in modern times does not only consider “who is running/owning the family business” but instead looks holistically at how we can support the next generation. These considerations may also include:

• Children pursuing careers outside the family business. This raises complex questions about fairness, especially when only one sibling is actively involved in the enterprise.
• On average, people now live and work longer, meaning leadership transitions are often postponed. This can create bottlenecks and stall innovation unless managed proactively.
• Modern family structures require careful planning to ensure clarity, equity, and legal robustness. Transparent communication and objective facilitation are key.

A case in point

Consider a family-owned horticulture business on Brisbane’s outskirts. The eldest son returned to manage operations after studying agribusiness, while his siblings' pursued careers in health and education. The parents, still active in the business, wanted to ensure continuity without creating division.

Through a structured plan and the right advisers, they:

• Transitioned operational control to the son over five years
• Created a family council to support inclusive decision-making
• Established a structure that enables whole of family land ownership, enabling income distribution while preserving the farm’s values and integrity
• Involved the whole family in planning to ensure they were all on the same page to avoid future conflicts.

The result is a sustainable business, a united family, and a clear path forward.

Looking ahead

Succession is not a single event. It is a deliberate process that unfolds over time. For Australian agribusiness families, the goal is not just to pass on assets, but to foster leadership, preserve values, and instil sustainability and resilience across generations.

Contact us to learn more about how BDO’s experienced professionals can assist your agribusiness to approach succession planning with clarity, empathy, and long-term vision.