Farmers lack succession plans

Farmers are being encouraged to implement appropriate succession plans in order to keep their business within the family.

The importance of succession planning for farmers was recently highlighted by experts, following claims that the favourability of the current market landscape should be utilised.

Less than 40% of farming families possess an effective succession plan according to NFU Mutual, a leading rural insurer.

Of those surveyed, the majority acknowledged the importance of the plans to safeguard their farm, despite less than half actually having one in place.

The statistics have led to concerns regarding the uncertain futures family farms may face.

Commenting on the necessity of succession planning was Jayne Watson. The Agent at NFU Mutual’s Morpeth branch stated:  “The New Year is an ideal opportunity for farmers to start to talk to their families about succession planning.

“We understand that it’s a difficult subject to raise, but taking the first step is the hardest part and we’re here to help at every stage.

“As the insurer of three-quarters of the UK’s farms, we know that farming is not just a business but a way of life, often spanning generations and involving the whole family.

“Whether farmers decide to hold onto the farm until death or give it away during their lifetime, having a plan in place will ensure the transition happens more smoothly and help their families to avoid paying unnecessary tax.”

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