Jonathan Hird, Associate Director at H&H Land & Estates , urges farming to use professional expertise to secure the future for the next generation of their families.
“As land agents, we are often asked to advise farming clients on practical matters like land, buildings, tenancies, values. But some of the most important work we do starts with a conversation that many farming families would rather avoid – Succession Planning.
Succession planning is without a doubt, one of the trickiest topics in farming. It touches on fundamental issues including fairness, expectation and the long-term viability of the business itself, but many farmers put off dealing with it until circumstances leave little room to manoeuvre.
The need to grasp this challenging issue has become even more important with changes to IHT due to come into force from April. And while the threshold for full relief has been raised to £2.5 million per person and fewer estates will therefore face a charge, for larger, more complex or diversified businesses, tax exposure will be substantial.
From a succession planning perspective, this reinforces the importance of understanding how your assets are structured, how they are growing in value, and how decisions made today could affect the next generation in 10 or 20 years’ time.
From our experience of working with farming families across Cumbria and the North East, succession planning is often delayed because it feels too uncomfortable to tackle. Older generations worry they may have to step aside too soon or lose control of what they’ve spent a lifetime building. The younger generation and family members may be uncertain about their role, or reluctant to push for clarity for fear of upsetting parents or grandparents. Add to this the day-to-day pressures of farming, and it is very easy to see why the conversation keeps being postponed.
However, I know that the problem in doing nothing makes the issue progressively more difficult and this uncertainty around succession quietly holds everything back. Investment decisions are delayed. Borrowing becomes harder when lenders are unclear about future management. Younger family members feel stuck and unsure whether they are genuinely building a future or simply filling a gap.
This is where professional advice can make a real difference in succession planning. We are not there to tell families what they should do, but to help you think clearly about what you want the business to achieve and how that can realistically be delivered. We are a neutral, objective voice, and we can ask the difficult questions without the emotional weight that family discussions naturally carry.
As the tax landscape shifts these questions are becoming even more important. The IHT changes have sharpened the focus on ownership structures, lifetime transfers and long-term planning. Decisions that might once have been delayed indefinitely now need urgent consideration. Tax should never be the sole driver of succession planning but ignoring it altogether can have serious consequences for the next generation.
Succession planning works best when it is joined-up. Any your professional team, the land agent, accountant and solicitor all have a role to play, and the best outcomes come when those advisers work together. Accountants help families understand the financial and tax implications of different options. Solicitors ensure arrangements are legally sound and flexible enough to adapt over time and provide clarity on land ownership. Land agents have a greater understanding of the value of the assets involved and how any proposed structure will work on the ground.
Good succession planning is not about setting everything in stone. It’s about creating a framework that gives the business direction while allowing room for change as circumstances shift, markets fluctuate, and family members’ ambitions evolve.
At its heart, succession planning is about safeguarding the farming business while also protecting family relationships. Those two things are not in conflict, but they do require honesty and clarity. Difficult conversations handled early, with the right support, are far less damaging than rushed decisions made under pressure.
With the added pressure of the IHT changes, many families are facing a period of huge uncertainty on every front. While no one can predict exactly how future policy will look, those who are best placed to respond are the families who already understand their position and have a plan in place.
Succession planning will never be an easy conversation, but it is one of the most valuable areas of advice we can offer a farming family. And taking advice early is not about giving up control. It’s about ensuring that your business, your land and your family are protected for generations to come.”