James Stephenson, Partner at Stephensons Rural, explains why the early part of the year is often the right time for farm businesses to review their position and plan ahead.
Farming is suffering a cold front at the start of the year, both from the weather and from the Labour Government. As a result, many businesses are taking a long, hard look at their trading accounts.
Our advice is not to put that appraisal off until the season gets busy. The next couple of months are ideal for sitting down and having a proper discussion.
For many farms, the figures are not what they used to be. Costs are higher, and we have lost the support of BPS. Succession and Inheritance Tax are high on the agenda.
A lot has already changed this year. The Government’s pre-Christmas U-turn on Inheritance Tax for farms raised the threshold at which estates are taxed and that eased some concern for the older generation, but it has not removed the need for proper succession planning.
Last Spring, the SFI window closed without notice once funding ran out and the blunt truth is that businesses can no longer rely on agri-environmental schemes to support them.
These issues affect decisions in a very real way. Investment, structure and succession carry more weight when margins are tight and many families are choosing to review their position now.
At Stephensons Rural we spend a lot of time sitting down with farmers and going through the figures. The aim is to understand where the business stands and what, if anything, needs attention.
We are offering a one-hour free consultation for farmers who would like to do that. There is no obligation. All discussions are treated in strict confidence.
Getting that conversation done early in the year is a great resolution to make. Looking forward to seeing you at YAMS on Wednesday 4 February.