• March 28, 2024
 60% of farmers without a succession plan

60% of farmers without a succession plan

The majority of farmers have no effective plans to pass on their farms to their children with family dynamics the main culprit.

According to research by NFU Mutual while most believe a proper plan is vital for safeguarding the future of a family farm, just 40% have such a plan.

Some of the key challenges researchers heard included:

  • the conversation is difficult to have
  • the farming business can only support one successor
  • the owner does not want/cannot afford to retire
  • the owner does not want to discuss it
  • family instability/conflict
  • successors don’t have the right skills or don’t want to take on the farm

But according to NFU mutual those same people who responded to the researchers’ questions acknowledged creating a succession plan would help with:

  • ensuring the future of the business
  • tax efficiencies
  • removing doubt and family tensions
  • being fair to all children
  • providing security for the older generation in retirement

Millie Fyfe, farmer’s wife and former chair of the National Federation of Young Farmers ‘s Clubs said: “Everyone should have a plan. Something that gives a business some structure and outlines what the future may look like with aspirations weaved in.

“Yes, there is so much emotion tied into the thought and decision making process but it must be far easier to do this whilst everyone is around rather than second guessing after losing a loved one.

“And then the only people who will get anything out of the process is the solicitor. So many times I have witnessed people’s livelihood’s torn apart because of disagreements and settlements which can often leave to selling off the farm or getting into huge amounts of debt.”

Josh Morris

Josh is the Journalist for the Today's Group and writes many of the articles for Today's Conveyancer. He graduated with a degree in Physics from Cardiff University in 2009 before training as a journalist. He has previously written for The Times, The Mirror and The Daily Express.