THE National Farmers' Federation wants changes in the age pension to better acknowledge the realities of farm succession planning.

In a submission to the Federal Government’s pension review, the NFF has branded the five-year waiting period imposed on farmers from the time they gift the farm to their children as “patently unfair” and called for it to be waived.

"While debate in Canberra rages about benefit scales for the age pension, many retiring farmers can’t even access it,” he said. “The five-year waiting period fails to recognise the unique nature of farm family/business life, or the need for the next generation to take over Australia’s future food and fibre needs.’’

The farm was not only a place of business, “it is also the family home’, Mr Crombie said.  “As such, many farms simply cannot support multiple families for five years without the pension... forcing farmers to either sell the farm, or work well beyond retirement age delaying, or deferring, retirement indefinitely.”

The current inflexibility caused major transition issues, Mr Crombie said. 

“With around 40% of farmers over the age of 55, and those over 65 representing 18% of all farmers, sensible succession planning is being thwarted, especially when one or more of the children want to continue working the farm.

“It’s a vicious cycle. This scenario also means many skilled and passionate young farmers are lost to agriculture – forced to leave the farm business rather than endure five years of financial and emotional stress while their parents wait to qualify for the aged pension.

“Too often those who do try to weather the unjust five-year pension pause see the family unit shattered as a result of the stress, not to mention resentment if the farm is, ultimately, sold.

“These issues unnecessarily plague farm families, are easily rectified and would result in one less obstacle to effective succession planning. We’re simply asking the Government to restore commonsense and fairness by waiving the five-year waiting period to facilitate the smooth hand-over of productive farm land to the next generation of Australian food and fibre producers.”