Farmers are being urged to start the New Year by making plans to keep their business in the family.
Research carried out by leading rural insurer NFU Mutual found that less than 40% of farming families have an effective succession plan in place.
Despite revealing a low number of farms that have succession plans in place, most of those surveyed agreed that it was a vital way to safeguard the future of a family farm.
This raises concerns that more than half of family farms could face an uncertain future.
NFU Mutual’s succession planning service helps guide farming families through the process of agreeing a plan for the long-term future of the farm.
'Difficult subject'
Jayne Watson, Agent at NFU Mutual’s Morpeth branch, said: “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.”
