Making Succession Flow with Pat Barrett

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This week, we have our first lawyer on the show, Pat Barrett. He is both a lawyer and farmer in Wagga Wagga, Australia.

Pat grew up with a passion for agriculture with friends and family involved in the industry and studied Agribusiness and Law at the University of New England with the intention of using the degree in a management position. “I never thought I was going to be a lawyer,” says Pat. But, after an interview planned by his mother with a local lawyer, Pat found himself shaking hands and accepting a job at the practice.

Today's conversation focuses on the common pitfalls in succession, which is a significant part of Pat's work.

“We’re made up of 50% succession work, the other 50% doing rural property/commercial work. I love getting to work with really good people and trying to find those solutions. It is a delicate and sometimes difficult ride,  succession. But I really love looking at the opportunities in every farm and farming business, because there are always opportunities.”

Pat reminds us never to look over the fence and copy what the neighbours do. “There's all these factors that affect succession and it’s never a one-off transaction.” With the individual complexities behind each farming business, no story is ever the same.

Mark and Pat run through what might be preventing someone from starting the conversation of succession. “They’re always going to be there, those risks”, says Pat. “It’s about looking at the opportunities to grease the wheel and keep things moving and work through those risks.”

Mark asks who needs to be involved in the discussion. “A lawyer, an accountant and a farm consultant, if they have one - it does really help - and bank managers are going to tell you how you can go through it and facilitate it from a funding point of view,” says Pat.

Not a particularly exciting, or cheap, mix of people, but Pat says it’s essential to maintain a circular discussion with each of these people to make sure no-one is heading down a biased, unproductive path.

“Ultimately, the things that I've seen work really well is where someone comes home onto the farm, they get paid properly, that person can then go and generate their own assets - that's buying a house in town or shares or whatever it is," says Pat.

Ultimately, Pat hopes people see the positives in succession.

“Being able to get through that process and hand something on to the next generation is unreal. Doing it via will, who gets the satisfaction in that? Seeing your family working and seeing your business go forwards,” says Pat. “I don't think that's celebrated anywhere near enough. And hopefully it's providing opportunity for other family members as well. Because of the way property prices have risen, it's a great way to spread wealth and opportunity amongst family.”

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