With over 100 years serving the rural community, we know that farming is so much more than just a job.
So, it can be hard to plan for a time when you might step back and hand over the reins.
Our Farm Handover Guide, shows the extent to which farmers avoid those tricky conversations about the future of their farm.
Whatever your age, it’s never too early to think about the longer-term direction of your farm, and to consider what role you and your family members will play in the years to come.
Starting a conversation about your future farm plans can be challenging. It’s not an easy topic to broach and will likely involve some tricky questions: what is the future of the farm, who will eventually follow in your footsteps and run the business, and how can you all make this work financially?
You’re likely to juggle lots of considerations, from the current cash needs of the business, and tax implications of your plans, to providing financial security for your loved ones and funding your own retirement. You may also plan to sell or let your farmland or property.
If you feel ill-prepared to tackle this topic, you’re not alone. In a 2021 survey of 1652 farmers for NFU Mutual*, 48% told us they have a formal succession plan in place, but many don’t regularly review it. Another 19% of farmers acknowledged that while succession planning was important, they hadn’t got round to it yet.
Once you’ve spoken with the relevant professionals such as an accountant or a solicitor and have the right plan for your farming business, NFU Mutual can help you put the right financial plan in place for your own future. An NFU Mutual expert who understands farming can review your financial ideas, and any potential Inheritance tax traps, to help you put your financial plan into action, so you can get on with running the business.
Regardless of when, or if, you intend to hand your farm on to the next generation, making a personal financial plan is a sensible step to take.
*NFU Mutual Voice of the Farmer research, June 2021
Talk to a financial expert
You'll benefit from expert advice, so for more information about how we can help you plan your financial future find your local agency office or request a call back.
In an episode of the Ahead of the Field podcast host Will Evans is joined by Northamptonshire farmer Milly Fyfe, Heather Wildman from Saviour Associates, specialists in facilitating succession planning, and NFU Mutual chartered financial planner Sean McCann. Together they discuss the challenge of succession planning and offer their thoughts and advice. You can listen to this episode of the Ahead of the Field podcast, 'Succession Planning in the Farming Community'.