Catherine Pickford: ‘Too many farmers don't get control until it's too late’

After a lot of research and networking, she took on a 10-year tenancy at Alford Fields Farm, Castle Cary, Somerset, the same year.

With 400 New Zealand Friesian cross Jersey cows on a 200-hectare (500-acre) unit, Catherine has been keen to start planning her own succession for the business. And thankfully, herd manager Nathan Crocker, a distant relative of Catherine’s, has been keen to increase his own responsibility and ownership of the business.

Although he’s not from a farming background, Nathan worked for Catherine while he was at college and he’s quickly found he has a real passion for the industry.

“I really am an outdoor person,” he says, “But it’s been good to challenge myself with some of the management and finances parts of farming, too.”

 

Simple transition of business still has some complexities

It's rare that a succession plan is a simple affair, but while their plans are to see Nathan increase his ownership of the existing herd – with no plans to split the company with any other parties – there are still some difficult issues to overcome.

Catherine says: “My tenancy here finishes in 2028, so discussions have already started with the landlord on how we can progress with this tenancy. Hopefully, Nathan will be able to take on the tenancy in 2028, if not before.

“My plans are to retire, but I want to help Nathan as much as possible.”

Nathan adds: “If the tenancy doesn’t get renewed here, then we’ll look for another tenancy or look at contract farming.”

Catherine says: “If it becomes clear that we won’t be able to farm on this site, then I fully intend to stay as part of the business and help Nathan secure another tenancy. The business assets will have to move, but I’ll be helping with every step of that, too.”

Collaboration fundamental to setting up the early steps of succession

It’s clear Catherine and Nathan have had plenty of long, open discussions about the future of their farming business – and this collaborative approach is really paying dividends in helping them support each other towards meeting their goals.

So, while they are still in discussions with their landlord to discuss the potential for extending their farm business tenancy, they are already progressing with plans to help Nathan own an increasing share in the business.

 

“At the moment, Nathan is a shareholder in the business, and we’re talking with the accountant about the best way to minimise or get the best tax advantage,” says Catherine. 

“So it’s all a case of whether he buys the cows outright, or if he buys more shares in the business, or if he buys the company completely.”

These discussions have all helped Nathan start the groundwork for owning an increasing share of the business

“I’ve spoken to Oxbury, and they’re very happy to lend the money,” he says, 

“It’s been much easier to agree lending for an existing business than for a new startup, as they can see five years of accounts already.”

 

Important to recognise the need for new skills

Catherine knows no one ever gets into farming for the paperwork, so she’s been really proactive in ensuring her staff are always developing their skills, paying for staff to take training courses to help them progress. 

This has been an essential part of the succession preparation, too, as it’s really helped Nathan learn more about the financial and planning side of running a farm business.

Nathan’s taken several courses to help develop his entrepreneurial skills and travelled across the UK and as far as New Zealand to find the best practice at other progressive dairy units. He's also part of a discussion group – tackling all kinds of issues, from the practicalities of farming to money management – something which he values tremendously.

He says: “It’s always good to see that if we have a problem, then someone else has usually got a similar problem or can help us out.”

These experiences have really helped Nathan get involved in more and more of the business’s operations, managing staff, budgeting and planning – and while he clearly has a passion for being outdoors, he's enjoying the challenge of developing his role further.

Facilitators can help keep succession discussions focused

Getting an independent third party involved to help facilitate their discussions has really helped them to outline their succession plan and detail the steps they both need to take to make it happen. And, importantly, this has also helped them understand how each of their goals has evolved, too. 

Nathan now has two young children and Catherine recognises the importance of ensuring the business allows him to have a practical work-life balance, particularly at this crucial time.

 

She says: “You don’t need to be working 60 or 70 hours a week. You can make it enjoyable, which it needs to be, particularly to encourage the younger generation in.”

In terms of the importance of succession planning for business continuity, Catherine is unequivocal.

“Succession planning is probably the most important thing,” she says. 

“People need to know, especially the younger generation, what their route to succession is – and the older generation needs to give up, basically!

“There are too many farmers who aren’t allowed the chequebook until it’s too late.”

 

Plenty of reasons to be positive about succession planning

Bringing new people into the business, helping them develop their skills and being open with her own objectives has clearly helped Catherine plan the steps she needs to take towards her retirement – while also helping the industry develop new talent. She clearly understands the importance of giving new entrants the chance to develop a career – and a business – of their own.

“There should be opportunities for people outside of the business to come into the business too. It’s a good business to be in,” she says.

“We’re feeling positive at the moment with farming in general and dairy farming. 

“We’re in a good position now. We’ve got everything settled here, so hopefully we can continue and take things forward and continue being a profitable business.”