1 00:00:00,160 --> 00:00:03,320 Speaker 1: Very interesting insight into the rural sector from Rabobanks. So 2 00:00:03,360 --> 00:00:05,960 Speaker 1: their report looks into succession and the massive transfer of 3 00:00:06,000 --> 00:00:07,920 Speaker 1: wealth that is heading this country's way over the next 4 00:00:07,920 --> 00:00:11,200 Speaker 1: few years. Over half our farm and orchid owners are 5 00:00:11,200 --> 00:00:13,200 Speaker 1: going to reach retirement age in the next decade. Now, 6 00:00:13,200 --> 00:00:16,240 Speaker 1: that's one hundred and fifty billion dollars worth of assets 7 00:00:16,280 --> 00:00:20,000 Speaker 1: potentially changing hands. Todd Chatteris is the CEO of Rabobanking 8 00:00:20,000 --> 00:00:23,640 Speaker 1: as well as Todd Morning Morning, Mike. I am very well. Indeed, 9 00:00:23,680 --> 00:00:25,279 Speaker 1: I read the report and what the best line in 10 00:00:25,320 --> 00:00:28,000 Speaker 1: its succession is not a moment in time, It's a 11 00:00:28,080 --> 00:00:31,120 Speaker 1: process that takes years. I thought that was almost profound. 12 00:00:31,760 --> 00:00:33,720 Speaker 1: What you're telling me with the numbers is most people 13 00:00:33,800 --> 00:00:35,640 Speaker 1: haven't worked that through and too many people don't have 14 00:00:35,680 --> 00:00:36,040 Speaker 1: a plan. 15 00:00:37,080 --> 00:00:41,199 Speaker 2: Yeah. Yeah, that's what the research is showing. And we've 16 00:00:41,240 --> 00:00:44,560 Speaker 2: got about half of the farmers we surveyed actually haven't 17 00:00:45,520 --> 00:00:48,000 Speaker 2: thought about it yet, which is a bit of a concern. 18 00:00:48,080 --> 00:00:50,360 Speaker 2: But we just need to work through it because there's 19 00:00:50,360 --> 00:00:52,839 Speaker 2: a big opportunity here and a big need for it. 20 00:00:52,880 --> 00:00:55,400 Speaker 1: I guess when you talk about the retirement age doesn't 21 00:00:55,480 --> 00:00:58,840 Speaker 1: mean in relation to the potential transfer just because you 22 00:00:58,920 --> 00:01:00,640 Speaker 1: reach sixty five doesn't mean you want to sell up 23 00:01:00,720 --> 00:01:02,560 Speaker 1: or move on or even stop working, does it. 24 00:01:03,400 --> 00:01:05,119 Speaker 2: No. I think that's what we need to put in context. 25 00:01:05,160 --> 00:01:07,440 Speaker 2: So we shouldn't actually call it the retirement age, because 26 00:01:07,480 --> 00:01:10,280 Speaker 2: there is no official time and age, certainly in farming. 27 00:01:10,360 --> 00:01:12,120 Speaker 2: So it's the age of sixty five is what we're 28 00:01:12,160 --> 00:01:15,639 Speaker 2: referencing there, and as we know, a lot of people 29 00:01:15,680 --> 00:01:19,360 Speaker 2: go on beyond that. But it's essentially handing over the 30 00:01:20,760 --> 00:01:24,520 Speaker 2: sort of financial requirements and thinking in that regard as 31 00:01:24,520 --> 00:01:26,280 Speaker 2: opposed to actually working in the business. 32 00:01:26,280 --> 00:01:29,640 Speaker 1: I guess, how much do you know about transfer of 33 00:01:29,720 --> 00:01:33,600 Speaker 1: land within the family and how much of that's changing 34 00:01:33,640 --> 00:01:36,520 Speaker 1: because the world has changed versus any other reason. 35 00:01:37,560 --> 00:01:39,720 Speaker 2: Well, look, I think there's still that emotional tie for 36 00:01:39,760 --> 00:01:43,959 Speaker 2: a lot of farming families in New Zealand, and the 37 00:01:44,080 --> 00:01:48,360 Speaker 2: challenges farms are getting bigger. There's less farm owners and 38 00:01:48,400 --> 00:01:51,920 Speaker 2: so that the capital requirement is a big amount nowadays. 39 00:01:51,920 --> 00:01:56,560 Speaker 2: So what we're seeing is I think, and opportunities around 40 00:01:56,600 --> 00:02:01,240 Speaker 2: different ownership models, and I think that's something that we 41 00:02:01,360 --> 00:02:04,360 Speaker 2: need to continue to explore because we need to keep 42 00:02:04,640 --> 00:02:07,600 Speaker 2: that connection with the land. But does that mean you 43 00:02:07,640 --> 00:02:08,519 Speaker 2: need to own it outright? 44 00:02:08,960 --> 00:02:10,720 Speaker 1: It's a very interesting I'm glad you said that because 45 00:02:10,760 --> 00:02:12,359 Speaker 1: I thought that was one of the most interesting parts 46 00:02:12,360 --> 00:02:14,640 Speaker 1: of it. You talk about EWI investors and you know, 47 00:02:14,720 --> 00:02:18,080 Speaker 1: partial investors and stuff. Would many farmers, traditional farmers have 48 00:02:18,120 --> 00:02:19,639 Speaker 1: even thought of those options. 49 00:02:20,480 --> 00:02:23,040 Speaker 2: Oh, we We've seen some really great examples and we've 50 00:02:23,080 --> 00:02:27,760 Speaker 2: highlighted We've highlighted one of those hybrid ownership models in 51 00:02:27,760 --> 00:02:30,640 Speaker 2: in their white paper. And I'm not saying that's the 52 00:02:30,680 --> 00:02:32,359 Speaker 2: way to go, but it's an option, and I think 53 00:02:32,400 --> 00:02:35,440 Speaker 2: people are looking more at options to maintain that connection 54 00:02:35,520 --> 00:02:38,840 Speaker 2: and ownership within families, but also bringing in like minded 55 00:02:38,919 --> 00:02:41,840 Speaker 2: investors that helps that transition to the next generation. 56 00:02:42,080 --> 00:02:44,639 Speaker 1: How much of it is connection versus just pure ownership. 57 00:02:44,639 --> 00:02:45,959 Speaker 1: It's an asset, I'm moving it on. 58 00:02:47,080 --> 00:02:50,240 Speaker 2: Oh look, I think it's a combination. I think it's 59 00:02:50,240 --> 00:02:53,280 Speaker 2: a combination, and there's no one model fits all, right, 60 00:02:53,360 --> 00:02:57,680 Speaker 2: And for some people and some families, the best option 61 00:02:57,840 --> 00:03:01,959 Speaker 2: is to sell up and do other things. But for others, 62 00:03:02,280 --> 00:03:04,480 Speaker 2: there is a deep connection and they want to keep 63 00:03:04,520 --> 00:03:07,560 Speaker 2: that connection going of the land, and it's just how 64 00:03:07,600 --> 00:03:09,960 Speaker 2: we facilitate that as the big challenge. 65 00:03:10,000 --> 00:03:12,000 Speaker 1: Well, I've got you, what's the vibe? I mean, Is 66 00:03:12,000 --> 00:03:14,240 Speaker 1: there anyone not doing well on the land at the moment? 67 00:03:15,000 --> 00:03:17,240 Speaker 2: Oh, no, things are pretty good, Mike. There's a lot 68 00:03:17,240 --> 00:03:21,359 Speaker 2: of enthusiasm out there. I mean, notwithstanding the challenges they're 69 00:03:21,360 --> 00:03:23,080 Speaker 2: going on around the world. But it's a good place 70 00:03:23,120 --> 00:03:24,720 Speaker 2: to be at the moment. And food Negro, there's no 71 00:03:24,760 --> 00:03:27,120 Speaker 2: doubt about it. And the sector's doing really well. 72 00:03:27,160 --> 00:03:29,360 Speaker 1: Good stuff. Nice to talk to, you appreciate it. Todd Chatters, 73 00:03:29,440 --> 00:03:33,000 Speaker 1: Rabobank's CEO one hundred and fifty billion dollars worth about sis. 74 00:03:33,000 --> 00:03:34,760 Speaker 1: There's saw some grapes being pulled out at our place, 75 00:03:34,800 --> 00:03:36,720 Speaker 1: not at our place literally, but over the fence the 76 00:03:36,800 --> 00:03:39,480 Speaker 1: other day, and I thought to myself, there's a change 77 00:03:39,600 --> 00:03:42,040 Speaker 1: happening in front of her very eyes, and it's a 78 00:03:42,080 --> 00:03:45,160 Speaker 1: sad thing. Especially vines, old vines too, And I thought 79 00:03:45,200 --> 00:03:47,000 Speaker 1: there'll be a reason that I happen to know what 80 00:03:47,040 --> 00:03:48,760 Speaker 1: the reason is. No need to tell you about it, 81 00:03:48,760 --> 00:03:53,160 Speaker 1: but I thought there's something emotional about that when you've 82 00:03:53,160 --> 00:03:55,840 Speaker 1: been invested in the land for years and you're looking 83 00:03:55,880 --> 00:03:58,680 Speaker 1: at old vines going out and the tractors come in. 84 00:03:58,840 --> 00:04:00,200 Speaker 1: It took a long time to do it, lost a 85 00:04:00,240 --> 00:04:02,720 Speaker 1: lot of money to So the next question is of course, 86 00:04:02,800 --> 00:04:05,360 Speaker 1: Likecally what happens to the land. For more from the 87 00:04:05,400 --> 00:04:08,440 Speaker 1: Mic Asking Breakfast, listen live to News Talks at B 88 00:04:08,600 --> 00:04:12,320 Speaker 1: from six am weekdays, or follow the podcast on iHeartRadio.