Lime Solicitors wants families to have open and honest discussions to ensure a smooth business transition between generations.
The advice follows a survey that found 1 in 3 farmers are worried that their business will fail if handed over to their children. The survey also found that 42% are concerned that their children may sell the family business altogether.
Furthermore, 32% of agricultural business owners said that if they thought a relative would sell on the family business, they would exclude them from their will. Excluding someone from a will can lead to a heightened risk of legal complications and disputes over estates, which can be both financially and emotionally draining.
Unlike many other industries, the farming sector often involves emotional and cultural ties to the land, complicating decisions around inheritance, ownership, and management roles.
Alistair Spencer, legal director at Shakespeare Martineau, says it is arguably the most sensitive decision a farmer has to make. “Handing over a business is one of the most emotionally charged and complex decisions an owner can make. Our research shows a real worry from agricultural business owners who fear their children lack the skills, experience, or interest needed to continue what they’ve spent their lives building.”
“Farming businesses are unique. They are not just enterprises, they are often multigenerational legacies. Without clear succession planning, however, even the most successful farms are at risk of collapse or sale when the next generation takes over.”
