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An NFU Mutual survey shows the percentage of farmers who have a succession plan in place remained static from three years ago, at 48 per cent.

More than a third of farmers do not have a plan because they do not think it is relevant to them while 16 per cent admit succession planning is relevant, but they have not got round to it yet.

Gregor Belcher, farming specialist at NFU Mutual, said: "It has been tough for farmers to plan with any great certainty over the past few years.

Succession

"The post-Brexit transition in subsidies, rampant inflation, slow pace of farming policy, and changing prices to food, fertiliser and fuel have all impacted the ability to put in long-term business plans," he said.

He added deciding on succession dropped down the priority list when there were ‘more immediate needs to tackle' but it was still important to futureproof the farm.

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"In some cases, these challenges will have triggered a need to start thinking about succession, but even those farmers who do not believe a plan is relevant to them can put in a series of small simple steps to protect their farm," Mr Belcher added.

Sean McCann, chartered financial planner at NFU Mutual, added even if now was not the right time to make a plan, there were still measures which could be put in place to protect its future.

What ifs

"Thinking of the ‘what ifs' is a useful starting point, especially if you are in a partnership," he said, advising having a partnership agreement in place.

See more: Succession planning still on to-do list for many

He added if one of the partners died, the share of the business could pass to someone else who may have little interest in the business or be hostile to its objectives.

"Equally, a partner who suffers a serious illness may want to retain the option of continuing in the business or be compensated for their exit from the business," he said.

He also advised farmers to have their wills up to date.

²ÝÁñÉçÇø have been looking to the future in terms of future incomes, with the number of farmers with pensions increasing from 66 per cent to 77 per cent over the past four years.

See more: Absence of clear succession prompts young farmer to search for other opportunities