²ÝÁñÉçÇø

As the farmland market tightens and becomes increasingly competitive, it is critical to set your farm apart from the competition and attention to detail can make all the difference to achieving not just a successful sale, but also maximising value.

Timing

Timing is key to any successful farm or estate sale.

While the market has become much less seasonal, the opportune time to market most farms is from spring to mid-summer when crops are flourishing and stock farms and sporting estates look their best.

Identifying when you wish to sell and working back will enable you to formulate a plan and determine all the hurdles you need to overcome before a sale can happen.

Read also: Strutt and Parker: "Managing risk is increasingly important"

Tax

Tax is a critical consideration and capital gains tax is likely to be the biggest issue.

The sale of land in a farming business will attract the standard rate of 20 per cent, but if the vendor qualifies for entrepreneurs' relief, this is reduced to 10 per cent.

While you do not need to be a mathematician to work out the benefits, you will need a tax expert to ensure eligibility.

It is key to showcase a farm in its best light.

You will want to ensure that prospective purchasers see your farm at its best and as such, a ‘spring clean' prior to marketing will benefit.

It is often good to put yourself in the purchaser's wellies and ask yourself, ‘would I buy this?'

It is critical to build a professional team who can move quickly.

Putting this team together at the earliest opportunity will ensue that your sale is considered from every angle.

Read also: Leader: Our farm businesses need clear signals on investment

Inspection of the Land Registry title and deeds at an early stage is crucial and, addressing any restrictions on title or title defects and resolving them prior to launch, will reduce the risk of a sale falling through.

A comprehensive information pack, which can be made available to a prospective purchaser's lawyers, will help expedite the conveyance.

Planning

While farmers and landowners are usually aware of planning potential on their land, they are not always aware of the latest regulations and highlighting untapped potential such as proximity to grid connection for developing renewable technologies could unlock significant latent value.

Careful use of development clawbacks can also protect your interests long term however, there is a fine balance to strike to ensure that it does not have a negative impact on a purchaser's appetite.