What is the value of my farm?

Jacob Armett, a Land Agent at C&D Rural, explains why obtaining an accurate valuation of your farm and assets is the important first step in succession planning.

Upcoming changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) and the potential impact this will have on Inheritance Tax (IHT) have been widely publicised – and criticised – as farmers the length and breadth of the UK are likely to be affected in some way.

The new legislation set to be introduced by the Government in 2026 is forcing farmers to start planning for the future and consider the transfer of assets to the next generation to avoid their sons and daughters being hit by hefty IHT bills upon their death (provided the assets are transferred at least seven years beforehand).

These changes are sparking necessary conversations about succession planning, and the best place to get started is with the question ‘How much is my farm
worth?’ Enlisting the services of an experienced and independent land agent and valuer is crucial in establishing an accurate value for your farm and its associated assets.

While farmers may have ideas of what their estate is worth, these estimates may be wide of the mark especially in a rapidly changing market – and this can cause problems for farming families further down the line.

Your trusted and knowledgeable land agent will visit your farm and conduct an in-person assessment, evaluating all assets, whether under tenancy agreement or owned outright. Key factors they consider during the valuation include:

• Acreage of farmland;
• All buildings;
• All property;
• Statutory searches, tax bands, and other relevant data.

The value of farmland and associated assets fluctuates frequently, sometimes on a monthly basis or more often. This is why having a professional who closely monitors market trends is invaluable, ensuring you receive the most up-to-date and accurate
valuation.

It is also important to remember that just because a neighbouring farm sold for a certain price, this does not guarantee that yours will achieve the same value. Once you have received your valuation report, you will have the essential information needed to engage with solicitors, accountants, and land agents to map out a long-term succession plan.

For families with multiple siblings, discussions around the fair division of assets are common. It is not always an equal split – even when there are just two siblings. Valuing each part of the land and determining who will benefit from specific assets often requires careful negotiation.

In addition, the valuation process can identify surplus assets that are not integral to the core farming business. Your land agent can advise on whether selling these assets – such as vacant plots of agricultural land that may be of more value to a neighbour – would be beneficial.

It is worth noting that farms of all sizes, whether 10 acres or 10,000 acres, should be valued. Even if you believe your estate may not exceed the £1 million cap linked to the new IHT legislation, having a valuation can still be incredibly valuable. Knowledge is power.

There is often a stigma within the farming community around having open conversations with the next generation about future planning and the transfer of
assets. However, overcoming this barrier is essential to ensure a smooth transition and the long-term success of the family business.

Now is the time to start these discussions, as the changes to APR and BPR will be here before we know it. Farmers must ensure that everything is in order well before potential issues arise.

At C&D Rural, our team of experienced land agents and valuers has extensive expertise across rural, residential, and agricultural sectors. We offer a comprehensive service to assess the true value of your farmland and assets.

From initiating the valuation process to analysing your full portfolio and advising on the best course of action for your assets, we provide a one-stop shop to support your transition into succession planning.

*Jacob can be contacted at jacob@cdrural.co.uk or on 01228 792299.