Agriculture & Rural Land – Post-Budget Commentary

Budget 2024 Commentary – Agricultural Sector

After weeks of speculation and leaking it is not an exaggeration to say that yesterday’s budget came as a bit of a bombshell for farming businesses including Wilson Browne clients.  The changes to Agricultural Property and Relief (APR) which will be introduced on 6^th April 2026 will bring into sharp focus the need for farmers to plan succession on the family farm with increasing urgency, and to consider the need for diversification to bring in more income.

According to Rachel Reeves she does not believe that three quarters of small family farms will be affected by these changes.  However, the Chancellor does not appear to be taking into consideration land values and what is may actually constitute a small farm.

Well respected surveys of farm sales of more than 100 acres in Autumn 2024 showed that the average UK farm, of around 200 acres, has an average price of £11,000 per acre and although obviously it depends upon exactly where the farm is situated and the quality of the land in question, certainly in the east of England and East Midlands region that value may very well apply. That would therefore mean that the average farm, which would not be considered a large farm, would be worth around £2.2 million.

The reforms to Agricultural Property Relief and Business Property Relief have been condemned by both the NFU and the CLA and one of the concerns expressed is that this may well lead to the breakup of family farms and land being bought up by larger farming enterprises, and this is not the only measure affecting farmers.

Chancellor slashes farming budget and caps APR • CLA

For further detail go to:

Summary of reforms to agricultural property relief and business property relief – GOV.UK

Wilson Browne agricultural team are ready to assist farmers with succession and tax planning measures alongside their accountancy and financial advisors, With the average age of farmers rising, it has never been more important for farmers and landowners to consider their future and that of the family farm, while they have the opportunity to do so.