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Resilience in the fields: Navigating uncertainty and unearthing opportunity in UK Agriculture | |
The UK farming sector is no stranger to challenge. But as we move through 2025, the pressures facing agricultural businesses feel particularly acute. From shifting tax policies to unpredictable weather, the landscape is changing—and not always in ways that feel reassuring. | |
A Sector Under Strain
Many farming families are grappling with the implications of upcoming changes to inheritance tax reliefs, which will see Agricultural Property Relief and Business Property Relief capped at £1 million from April 2026. Beyond that threshold, relief will drop to 50%, raising serious concerns about the viability of passing farms down through generations without triggering significant tax liabilities. | | | |
Meanwhile, the impact of new trade deals continues to ripple through the sector. While international agreements promise broader market access, they also introduce competition from producers operating under different standards and cost structures—leaving UK farmers to navigate a more complex and uncertain commercial environment. And then there’s the weather. Climate change is no longer a distant threat but a daily reality. From flash floods to prolonged droughts, extreme conditions are disrupting planting schedules, damaging crops, and driving up costs. The unpredictability of the seasons is making long-term planning harder than ever. | |
Green Shoots of Optimism
Yet amid these challenges, there are reasons to be hopeful. The sector is evolving—and in many ways, becoming stronger and more inclusive. One of the most encouraging trends is the expanding role of women in agriculture. Across the UK, women are increasingly taking the lead in succession planning, financial management, and strategic decision-making. | | | |
This shift is not only reshaping traditional family dynamics but also bringing fresh perspectives and renewed energy to farming enterprises. Technology is also offering new tools for resilience. The use of drone technology is helping farmers monitor crop health, apply fertilisers with precision, and reduce environmental impact. These innovations are cutting costs, improving yields, and supporting more sustainable practices. | |
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James Cowper Kreston is a leading firm of accountants and business advisers, with offices across the South of England. We deliver focused, innovative advice to a diverse range of businesses and individuals helping our clients to maximise their potential.
If you would like to discuss this topic further, then please contact a member of our Farms & Estates team here.
Kind regards
Fiona Hawkins | Partner T: +44 (0)7990 525280 E: fhawkins@jamescowper.co.uk jamescowperkreston.co.uk | | | |
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