Farmers are choosing to keep making their own decisions as there is no immediate extra profit in having formal governance boards and committees, according to a recent Lincoln University survey.
The survey was conducted by Lincoln researchers Dr Kevin Old and Dr Peter Nuthall, and covered all farm types, sizes and regions. It was designed to look into the current situation for succession and governance on New Zealand farms.
Dr Old says most farms in New Zealand are family owned and operated. Only 1.24 percent have public company ownership.
The survey found, on average, farms with a board or advisory committee earned a profit of $47,400 per person working on the farm. In contrast, all other farms made a profit of $49,900 per person.
“While the difference is not great ($2400), there certainly isn't a resounding return from having a board or committee. And, of course, these are averages. Some farms will gain from a board or committee, others not,'' Dr Old says.
They found 69 percent of the farmers made all the decisions even if consulting family, friends and colleagues first.
“They appeared to be disinterested in making use of alternative governance systems that might offer assistance and act as a break on hasty decisions and actions.''
