The agricultural sector is entering a period of profound change. With sweeping tax reforms and environmental policy updates on the horizon, farmers and rural businesses face decisions that will shape their operations for decades. At the 2025 Larking Gowen Autumn Farming Conference Series, which brought together more than 250 farmers, growers, landowners, and rural business owners to explore what lies ahead, the conversations revealed a clear message: preparation is no longer optional, it’s urgent.
The conference was sponsored by Virgin Money and supported by the Country Land and Business Association (CLA). The speakers included teams from Ashtons Legal LLP, Brown&Co, Alan Boswell Group and Beckett Financial Services. Proceeds were donated to chosen charity partner YANA (You Are Not Alone), which provides mental health support for the farming/rural community.
Bruce Masson and Laurie Hill, partners in the Larking Gowen Farms and Rural Business team unpack the critical insights from the conference and what they mean for succession planning, financial resilience, and the future of UK agriculture.
Inheritance Tax reform: a looming risk
One of the most significant concerns is the upcoming inheritance tax (IHT) changes effective from April 2026. These reforms could trigger substantial liabilities for farming families if succession plans are not in place. The consensus among experts was clear: any untimely death after this date could result in a large tax burden, making proactive planning essential.
Capital Gains Tax and pension reforms
Alongside IHT changing for business reliefs, unused pensions will also fall into the scope of IHT from April 2027. The changes to Capital Gains Tax with the Business Asset Disposal Relief rate going from 14% to 18% in 2026/27 may cause several businesses to consider restructuring certain parts of their operations.
Environmental schemes and budget constraints
While the Sustainable Farming Incentive (SFI) and Environmental Land Management Schemes remain central to future policy, DEFRA’s budget cap of £2.7 billion until 2029 limits the scope for expansion. This constraint underscores the need for diversified income streams and robust financial resilience.
Succession planning and trusted advisors are key
Legal and financial specialists stressed that assembling a trusted advisory team is critical. Succession planning should not be delayed, the 5 April 2026 deadline leaves little room for complacency.
Industry sentiment: a mixed outlook
Live polls during the seminars revealed a stark mood: negative views on farming’s future outweighed positives three-to-one in Ipswich and Norwich, two-to-one in Fakenham, while Diss was evenly split. Despite this, engagement was high, and discussions highlighted optimism among those prepared to adapt.
Our perspective
We believe these findings reinforce a single truth: resilience in farming today is as much about strategic foresight as it is about operational excellence. The next few months will be pivotal. Farmers who act now, by reviewing tax exposure, succession plans, and diversification strategies, will be best placed to thrive in a changing landscape.
Get in touch
The dedicated Farms and Rural Business team at Larking Gowen are committed to supporting those in the sector, so get in touch if you have any questions or concerns. Please email us at enquiry@larking-gowen.co.uk or visit larking-gowen.co.uk find out more about how we can support you and your business.
We also have a podcast Beyond the Barn: the business of farming where a different guest each episode shares their expertise on various business topics affecting the farming and rural community. The series covers a range of subjects including tax, legal matters, succession, and inheritance, aiming to provide insights and tips to those living and working in agriculture. You can listen in the tractor, at your desk or on the dog walk! Find it wherever you get your podcasts or on YouTube, just search for Larking Gowen Insights.
