Sixty percent of farm businesses do not have a written succession plan, according to a Farmers Weekly/NFU Mutual survey of farm owners and potential successors.
The study aimed to find out how many farming businesses have a succession plan in place, and what those plans cover and the barriers to creating a succession plan.
More than 700 farming families responded. The average age of farm owners in the survey is 57 years (23% over 65) and 36 for successors (29% under 25).
There’s a difference of opinion on the risks of not having a succession plan in place between owners and successors, as these figures show.
The Farmers Weekly survey was carried out by independent research firm Reed Business Insight, operating to the UK Market Research Society’s code
of conduct. Read the full research findings.
Succession planning is often a difficult issue for farmers.
It can be quite a daunting topic to raise with family members, whether it’s because of the emotional issues that come with retirement or how to pass on a farm fairly to siblings.
NFU Mutual believes it’s important to start having conversations now involving all members of the family who are involved with the farm and to seek expert advice on the financial implications of the options open to them.