THOUSANDS of family farms face an uncertain future because there are no plans in place to hand on the business to the next generation, according to a recent survey carried out by Farmers Weekly magazine.

More than 60 per cent of UK farming families lack a written succession plan, according to the study – even though 64 per cent of families believe the absence of such a strategy threatens the future of the farm.

Lack of communication and a desire to avoid family conflict are among the biggest reasons for not having a succession plan, although owners’ reluctance to retire and businesses that can only support one successor were also mentioned as major challenges.

More than 700 farming families responded to the survey.

If the survey results are extrapolated across the whole of the UK, it suggests that as many as 40,000 family farms are at risk.

While most respondents wanted to keep the farm within the family, they often felt unable to secure a future for the business in a way that catered for the needs of everyone involved.

The main reason for not having a succession plan was because the “conversation was difficult to start” – although this was more likely to be cited by successors than farm owners.

Successors were also more likely to cite family conflict as a challenge to succession planning.

Responses were split into owners with a farm to pass on to the next generation and successors hoping to inherit.

A lack of communication within farming families about succession means potential successors frequently expect to take on the farm business sooner than owners are willing to relinquish control.

Michael Mack, partner with rural business consultant Smiths Gore, said: “A lot of the findings are very worrying – even if sadly they aren’t surprising.

“Although it can be difficult, farming families should try to explore and resolve any differences.

“It is important to get succession right so it is fair for everyone.”

Farm owners often insisted they couldn’t afford to retire – and that potential successors lacked the right skills.

Matt Lobley, associate professor in rural resource management at Exeter University, has spent more than 25 years studying ways of overcoming barriers to farm succession.

The traditional birthright of the eldest son was not necessarily the best way of handing on a family farm, he said: “Passing on the ownership of the business should be separated from handing on the day-to-day running of the farm and its management.

“Deciding who will own the farm and who is the best person to manage it are very different issues – it isn’t always the same person.”

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