How can Farmers overcome generational succession issues?

Diversifying and Developing New Income Streams 

Diversification is key for many farm businesses to survive.  Farmers can look into developing commercial or residential developments on their land, such as workshops, retail units, office space, rented accommodation, or holiday cottages. Renewable energy projects like solar panels are also a popular diversification option. 

Securing Funding and Demonstrating Affordability 

Accessing funding for diversification projects can be a major challenge. Farmers should work with consultants to develop detailed budgets and business plans that demonstrate the affordability and viability of their proposed projects.  Showing a good track record in business and understanding the market risks can also help secure financing. 

Adapting to Policy Changes 

The withdrawal of the Basic Payment Scheme is a significant concern for many farmers. To adapt, they will need to find ways to diversify their income sources and reduce reliance on direct government payments. Exploring new environmental schemes like ELM may provide alternative sources of funding, though this comes with its own concerns.

Embracing New Agri-tech and Innovations 

Adopting new agricultural technologies, practices, and business models can help improve productivity and profitability. This includes leveraging mobile phones, the internet, and participatory approaches to extension services. Closer integration of research, development, and extension will also be important. 

Advocating for Supportive Policies 

Farmers may need to advocate for policy changes that better support the long-term viability of diverse farm types, including tenant farmers, livestock/dairy farms, and small farms. This could involve pushing for more equitable environmental schemes and measures to address issues like low output prices and high input costs. 

Check this advice - Contracts and New Agreements 

Before embarking on new plans speak to a specialist with a working knowledge of these areas.  Don’t sign any contracts without having had it fully checked and explained by a solicitor.   

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This update is for general guidance only and advice should be taken in relation to a particular set of circumstances.