Agri-Shop Ltd
Farminguk
01 September 2016 | Online since 2003
Auto Trader Ltd


13 June 2012 07:22:47 |Finance,News,Property News

Half of UK farmers without succession plans


Nearly half of British farmers have no formal succession plan in place for when they retire, according to research by Barclays.
A quarter of those without a plan admit that it was because they had not thought about it.
A further one in four (27 per cent) claim they do not have anybody to leave their farm to and 16 per cent believe they do not need a plan.

This lack of formal succession planning could add considerable risk to the agricultural sector, which contributes £85 billion to the UK economy each year and employs 3.5 million people.

An added concern highlighted by the research is that 38 per cent of farmers who do have a succession plan in place do not involve their successors in the actual running of the farm or the business on a day to day level. This lack of involvement could impact negatively in both the short and long term, losing the farm valuable time and money. Interestingly, 24 per cent of farmers who plan to hand over to a family member, which in the majority of cases is a son (75 per cent), admit that the successor should be more hands on.

Martin Redfearn, Head of Agriculture at Barclays, said, “Many farms have been in the same family for several generations. To ensure the transition from one generation to the next is done smoothly, careful planning is essential rather than it being left to chance.

“Planning who will take on both the business responsibility and the assets of a farm can be a sensitive subject and not necessarily something people want to address. However, without that vital plan, future years, if not decades, of hard work are being put at risk.
“Importantly, succession planning doesn’t need to be an arduous or expensive process, but it does need to be considered far earlier and in a more formal way than it currently is. We want farmers to feel confident about their own future and that of their farm. To do that, we advise them to seek the best possible specialist advice on matters such as financial planning, tax and legal issues. There is lots of support available to help farmers make the right choices.”
Meurig Raymond, National Farmers’ Union (NFU) Deputy President adds, “The importance of succession planning, and of having a live and formal plan in place, can’t be underestimated. We would encourage all our members to think about how the next generation can be brought into the family business and develop with them a more formal plan for how succession and handover will work. The NFU’s Next Generation Policy Forum members show the huge potential of the next generation, we’d encourage all our members to harness their enthusiasm and energy.”

Download

0 Comment

loginuserlogo
Name

Please enter your name


Email

Please enter your email

Please enter valid email


Comment

Please enter your comment


Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment


New Zealand | 31 August 2016
Agribusiness: Managing risk key to dairy farming future

Few industries generate as much discussion or concern in New Zealand as dairy farming. Currently, there is much discussion about the high levels of dairy debt. Those with long memories will know th...


USA | 31 August 2016
Farmworker overtime bill is another factor in agricultural evolution

Everyone knows about the California Gold Rush – the massive migration of fortune seekers to the hills of the former Spanish colony in the 1840s and 1850s. During the same period, however, there was...


Australia | 31 August 2016
Cattle exporter misses prospectus targets

Live cattle exporter Wellard Group has missed its prospectus forecasts on revenue, profit and margins, booking a $23 million annual loss instead of the forecast $9 million net profit. Stripping out...


USA | 31 August 2016
The future of agriculture could rest with self driving tractors

With all the talk of autonomous cars from Tesla’s master plan to take on Uber to the legacy automotive players like Ford and Audi pursuing the self-driving agenda, there’s little talk on self-driving ...


New Zealand | 31 August 2016
Stolen herd of dairy cows would cost at least $1m

The theft of 500 dairy cows worth $1 million is no joke and if it had been a bank robbed of this amount there would be a big fuss, says Federated Farmers. Dairy chairman Andrew Hoggard said the the...



Trending Now

Viewed
Discussed


Top stories you may have missed
FarmingUK
FarmingUK Logo

FarmingUK

A new survey has revealed that the vast majority of British consumers belie...


FarmingUK
FarmingUK Logo

FarmingUK

The British public are overwhelmingly in favour of keeping or strengthening...


FarmingUK
FarmingUK Logo

FarmingUK

The sustained recovery of pig prices since the spring has come at a time wh...


FarmingUK
FarmingUK Logo

FarmingUK

A World Trade Organisation (WTO) panel has declared the Russian import ban ...


FarmingUK
FarmingUK Logo

FarmingUK

A new study has linked oilseed rape crops grown from neonicotinoid-treated ...


FarmingUK
FarmingUK Logo

FarmingUK

Philip Hammond is to guarantee billions of pounds of UK government investme...


FarmingUK
FarmingUK Logo

FarmingUK

Access to the foreign labour market is 'critical', according the chief exec...


FarmingUK
FarmingUK Logo

FarmingUK

The Tenant Farmers Association has said the National Trust's vision for a p...


FarmingUK
FarmingUK Logo

FarmingUK

Ulster farmers will 'not lie down and wave the white flag' when Brexit nego...


FarmingUK
FarmingUK Logo

FarmingUK

The cost of rural crime to the UK economy costs £42.5 million a year, accor...


closeicon
Username
Password