Field Talk

Welcome to Field Talk, our agricultural law newsletter

In the six months since the highly criticised Autumn Budget my colleagues and I have been inundated with enquires from our farming clients.

The changes in Agricultural Property Relief and Business Property Relief have brought into
sharp focus the necessity for good business planning and structures within farming businesses. Farming has long been the backbone of rural life in the UK, with many farm businesses having been passed down through generations. However, as the agricultural landscape faces a host of new challenges – from climate change to economic uncertainty- farmers are increasingly recognising the importance of planning for the future.

Succession planning, in particular, is becoming an urgent issue. Ensuring the long-term security and sustainability of a farming business requires careful thought and preparation, it isn’t just about finding someone to take over the farm – it’s about safeguarding the future of the business, preserving the family legacy, and adapting to new realities in agriculture.

Our Private Wealth Partner, Philip Whitcomb, describes succession planning as a journey not a destination and this has never rung more true. This involves much more than simply deciding who will take over the farm. It requires careful consideration of business structures, financial strategies, and the training and development of the next generation of
farmers.

Generally speaking, there are 5 key priorities when planning for your farm’s future: ensuring a smooth transition of ownership, maximising tax efficiency, safeguarding financial stability, giving flexibility to adapt to changing circumstances and preventing stress and disruption. And the five golden rules: start early, involve the whole family, seek professional advice, prepare the next generation and review/update your plan regularly.

Succession planning is essential to the long-term success and security of a farming business. While it can be uncomfortable to confront the reality of passing on the business, it is far better to plan early than to face uncertainty or conflict later. By taking proactive steps to plan for the future, farmers can ensure the continuation of their legacy, protect their family’s financial security, and help create a sustainable and harmonious future for the next generation of farmers. The sooner the planning begins, the more secure and stable the future of the farm will be.

Esther Woolford

Head of Agriculture Sector Team