Adaptability is key in current farming climate

With numerous obstacles being placed before farmers, Jacob Armett, a Land Agent at C&D Rural, is urging people to think ‘outside the box’ and adapt to overcome challenges. He outlines ways farmers can mitigate the impact to their business and maximise their current assets.

There’s no other way to say it: farming is tough right now.

With the ongoing demonstrations about the potential impact Inheritance Tax will have on farming estates and the gradual phasing out of delinked payments – formerly known as Basic Payment Scheme combined with Defra’s recent announcement closing the SFI scheme – there are major obstacles facing farmers.

And this is just scratching the surface.

More than ever, it is key for farmers to re-evaluate their business and take stock of their assets (no pun intended). Whatever your thoughts on the impending changes, they are very likely to be implemented so it’s a case of adapting to the changing situation and making sure you futureproof your farming business.

So how can we mitigate any negative impact which may follow?

Review your business and assets

The first and logical step is to assess your business and analyse whether it is viable without the delinked payments. Engage with your trusted land agent and look at the land and assets you own and explore ways to maximise your farm. Are there pockets of land that can be converted to other uses? Are there non- profitable parts of the business which you are expanding time and effort into for little reward? When things are tough, it’s time to look outside of the box of ‘conventional’ livestock farming.

Consider diversification

There has been a sharp rise in farmers diversifying their businesses to increase income streams, and there a lot of ways of bringing in extra money without too much extra work. Ventures which have proved successful include renting land out for camping pitches during peak summer months, introducing camping and glamping accommodation and converting old buildings into holiday accommodation. We are seeing a continued increase in people wanting to experience rural lifestyles and utilise the UK countryside.

Succession plan

A lot has been said about the controversial changes to Business Property Relief and Agricultural Property Relief, and the impact on Inheritance Tax bills, set to be implemented in 2026 so now really is the time to start looking at your options and engaging with your advisors to start implementing the changes you want to make. These conversations are often difficult and, in some cases, cause friction but avoiding the processes is unfortunately not the answer.

Apply for grants

There are grants and funding available to help farmers out, and when times are increasingly tough, these should be something to explore – especially in lieu of the reduced delinked payments.

Grants to consider include:

Countryside Stewardship – Expected to open in the summer, this grant pays farmers and land manager to protect, restore and enhance the environment and mitigate the effects of climate change through their land management practices.

Farm Equipment & Technology Fund – This is available to help farmers buy items which improve productivity, manage slurry projects and improve animal health and welfare. This is anticipated to reopen soon for applications.

Sustainable Farming Incentive (SFI) – Defra’s announcement this month has been a major blow to farmers. This scheme was 10 years in the making and perhaps its success was the death of it. Historically, the scheme’s aim had been to protect and promote the environment with farmers and land managers financially rewarded for carrying out its actions. We can but hope it re-emerges in a similar format.

Landscape Recovery – While this fund is currently closed, we’re keeping a close eye on it reopening. This grant encourages farmers and land managers to collaborate on long-term and large-scale projects promoting net zero carbon emissions usage, safeguarding protected sites and encouraging wildlife to habitats.

Get in touch

We offer a wide range of consultancy services at C&D Rural, and our team of experienced land agents and valuers has extensive expertise across rural,
residential, and agricultural sectors.

It all starts with a conversation so we recommend you get in touch, and we will talk through the options to ensure we can reach a satisfactory solution for you and your family.

It’s our mission to take these stresses away so you can concentrate on your daily business.

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