As the turbulent financial outlook continues to cause uncertainty for the agricultural sector, visitors to this year’s Cereals Event will be able to seek advice from experts on how best to navigate the challenges. 

The current financial landscape for UK farmers presents a complex and challenging picture, with significant variations across different agricultural sectors and regions. For example, while livestock farmers are experiencing relatively strong prices, the arable sector faces considerable headwinds.  

But what unites all sectors is the increased financial pressure, including fluctuating exchange rates and substantial tax bills – creating a perfect storm of economic uncertainty.  

To help farmers better understand the complexities of these financial changes, Jeremy Moody at the Central Association of Agricultural Valuers (CAAV) will be speaking at the Seed to Shelf Mainstage, sponsored by KWS. His seminar, entitled Land Use, Tax and Business, will dive into the critical factors shaping the future of British farming on both days of the event at 10am. 

“The transition away from traditional agricultural subsidies is accelerating, with both Defra and the Treasury signalling that farmers must increasingly rely on their own resources,” explains Mr Moody. “The Sustainable Farming Incentive (SFI) has emerged as a critical factor in farmers' financial planning, however, the recent closure of SFI applications caught many farmers by surprise, with uncertainty surrounding future schemes.  

“Ministers are suggesting a potential shift towards focusing SFI on less productive land and environmental initiatives, particularly in protected landscapes like national parks.” As such, strategic long-term planning is crucial for farmers looking to secure their financial future, after the Budget’s tax changes, he warns. 

Working on the basis of a 10-15-year outlook, farmers should consider several key factors, he says.  

• Generational succession: Plan carefully for the next generation, considering the viability of the current business model. 
• Business objectives and performance: Identify opportunities to improve overall business efficiency and profitability. 
• Climate resilience: Develop strategies to adapt to changing environmental conditions and potential agricultural challenges. 

Measures may include diversifying income streams, investing in sustainable practices, exploring innovative farming technologies and seeking expert advice on tax and inheritance planning. 

Generational planning can often be challenging for farming families and rural business owners. However, Michelmores solicitors are aiming to get the conversation started in a young farmers-focused panel session at the event.  

Charles Frost of Michelmores, headline sponsor of the Young Farmers Programme, says that, following the changes announced in the Budget last year, farming families must consider the impact of the proposed changes to inheritance tax on their succession plans and broader financial strategies. 

“Up until October 2024, the legislation encouraged landowners to hold onto their farms, while the new rules — which are due to come into effect in April 2026 —will require a change of approach in many cases,” Charles says. “The landscape looks set to change completely. There’s now a much greater case for handing assets on during your lifetime and at an earlier stage.” 

The proposed changes have forced farming families to think carefully about their succession plans and to have those conversations now, he adds. “We are helping many families to navigate complex discussions about tax and the transfer of assets to the next generation while ensuring that older generations retain sufficient resources to provide for their own needs.  

“Facilitating open family discussions hopefully results in a clear framework, with future expectations aligned, which benefits the farming business and all those involved in it.” 

Young farmers can play a crucial role in this by initiating ideas about succession and bringing their fresh ideas for the future to the table – an area which he’ll be focusing on at the event. “By bringing all family members to the table, the exercise ensures everyone understands the plan and feels confident about their role. 

“While there is uncertainty, there remain great opportunities, and the next generation of farmers will want to feel confident about their place on the family farm to commit their future to it and navigate the many changes the sector currently faces. 

“We hope that the panel session can be interactive and would encourage the next generation of farmers to come to the Young Farmer tent armed with questions and ready to share their own thoughts,” he concludes. “They may find themselves taking on greater responsibility for their farms at an earlier stage than they previously thought. With the many exciting developments in the sector there is potential to bring about hugely positive change for agriculture. So, let’s get the conversation going!”