Switching careers from farm to finance
As a six-year-old growing up in Gunnedah, James MacPherson knew he would become a farmer like his father and grandfather before him.
Thirty years on, MacPherson has sold his 2225ha cropping and grazing property and says his farming days are over.
“Family farming is in decline. I ran the farm for more than a decade, but financially it made sense to sell up and move.’’
Australia is home to more than 150,000 farms which, combined with closely related sectors, generate $103 billion yearly in production-underpinning 12 per cent of GDP according to the Australian Farm Institute.
Intergenerational changes, as typified by MacPherson, are a major challenge to agriculture.
Government figures show that Australia now has many old and few young farmers.
Average farmer age is increasing and total farmer population decreasing.
With fewer young Australians entering farming, the agricultural landscape is changing.
Farms are becoming larger and more profitable, but fewer in numbers.
“We are now seeing the corporates, typically those with capital to finance high fluctuations in cash flow, entering the market place and acquiring large parcels of land to achieve the scale needed to survive in an unforgiving environment,’’ says MacPherson.
“Having relevant industry experience is essential to the viability of any business but is accentuated in agriculture as, potentially every day, one management decision can make or break a crop. If those entering the market place don’t have the necessary know-how, they won’t be successful.’’
Selling up is one thing, transitioning into a new industry another. For MacPherson leaving the land was not just about changing jobs.
It involved relocating and embarking on a new career requiring education and retraining.
MacPherson invested in distance learning programs with Training Management Australia, based in Melbourne, and PS146 in Sydney.
He now has a diploma in financial services, qualifications in financial markets and derivatives and mortgage broking, plus a real estate licence.
And he plans to continue studying.
Eighteen months after leaving his crops and beef cattle, MacPherson joined Genesis Financial Partners to live and work on Sydney’s Lower North Shore.
Satisfied with his move, he admits it’s confronting to make a major change.
“Having to deal with the transition and going through the education process is a challenge. It feels slow, going from being highly productive to feeling like you’re not productive until you’re working in the field and generating income.’’
He stresses transformation takes time and planning, saying it’s easy to get sidetracked.
“I started thinking about diversifying eight years ago. I identified business sectors with growth and opportunity. I considered Australia’s ageing population -it will increase for the next 30 years ... there’s massive potential. I developed a nursing home model for the Sunshine Coast before deciding on a career in financial planning, a sector where the main focus is on the 45-plus age group.’’
MacPherson was expected to become a farmer, but he makes no career predictions for his three young sons.
“I don’t have any expectations. I have more expectations of myself in accepting their choices and being happy about what they want.”
Jo-Anne Bloch, chief executive officer of the Financial Planning Association (FPA), also has an eye on Australia’s ageing population and suggests it impacts financial planners themselves as well as clients.
“A number of our members are approaching 55 and may be looking to sell their businesses and help ensure that clients have new advisers.’’
Far from retiring himself, MacPherson hopes to take advantage of a surge in demand forecast by the FPA. A recent survey among its principal members predicts that demand for financial planners will increase by 55 per cent within five years.
“Australians are experiencing some very volatile economic times and the (survey) results show that more and more consumers are acknowledging the value of good, sound advice,’’ says Bloch.
Potential career changers should consider financial planning, he says.
“Financial planning is a great career change option. The training is well-structured for people who need to work while they’re training. It’s not like medicine; you can acquire the necessary knowledge while you’re working.’’
She believes career background is no barrier to success. “We get a lot of bankers, teachers, even former military-the combination of real-life skills and the ability to talk to peers and colleagues can be an advantage.”
