Planning for tomorrow, today: rural experts on securing the future of Welsh agricultural businesses
Planning for tomorrow, today: rural experts on securing the future of Welsh agricultural businesses
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Each July, the Royal Welsh Show turns Builth Wells into the vibrant centre of Welsh agriculture. Beyond the livestock displays and trade stands, the event provides a valuable chance for farmers and rural business owners to pause, reflect, and plan for the future.
This year, with major legislative and economic changes on the horizon, we spoke to lawyers in Wales (and regular attendees at the Show) about what the key issues they expect to discuss—and what agricultural businesses should consider now to safeguard their livelihoods and secure their legacies.
Mathew Bowen, Technical Lead, Wills and Probate, Red Kite Law
The number one issue we’ll be covering with attendees this year is succession planning, following the overhaul of changes made in the October 2024 Budget. The new Inheritance Tax rules as outlined in the Chancellor’s Budget are provisionally due to come into effect on 6th April 2026. This marks a ‘line in the sand’ for many farmers.
As solicitors, we have already been approached by several clients asking us if they need to gift land
or set up trusts due to tax implications arising from the budget.
There are a number of different options still available whether redrafting of Wills, family trusts and/or lifetime giving. One size does not fit all in this instance and it is important to get tailored advice to the specific circumstances of the farm.
Property succession planning will involve several advisors, including a land agent / valuer and the accountant, in addition to a solicitor. While the new rules make planning more challenging, there remain a number of opportunities. In particular, estates which have an opportunity to complete a deed of variation within two years may find this a valuable tool.
We need to understand your business, your goals and who you consult with to make this work. This isn’t about tick boxes – it’s about understanding people. Seeking professional advice can provide many advantages beyond the bare facts and taking that first step can often be the most challenging—that’s what we are here to assist you with.
Bryn Thomas, Partner, Agriculture and Estates Team, HCR Legal LLP
Many farmers are of the impression that lawyers are to be utilised only once a problem arises.
However, this could not be further from the truth. It has become ever more important to engage advisers early. Discussions with our clients at the Royal Welsh will focus on a proper consideration of the following:
- Partnership and Tenancy Agreements – commit to writing! Unwritten agreements lead to misunderstanding and unnecessary legal costs when disputes arise.
- Farm Accounts – review: Historic errors can cause complications, cost and stress at key events such as a death or dispute.
- Diversification: With farm income decreasing, many farmers are turning to diversification. Many overlook the regulations and planning applications required to sustain these ventures.
Don’t wait for a problem to become a dispute. Whether it’s a boundary discrepancy or disagreements over contractual terms, early instruction of a lawyer can avoid unnecessary wrangling and costly proceedings.
Rhys Evans, Director and Head of the Rural Team, JCP Solicitors
For another year running, JCP Solicitors looks forward to attending the jewel in the crown of Welsh agricultural events. A pressing issue to discuss will be the recently announced changes to Inheritance Tax (IHT).
The change in legislation has opened up conversations about succession planning. Too often, families come to us after someone has passed away, wishing to challenge a Will—usually avoidable with open discussion and specialist advice.
Another topic is how landowners can avoid facing Definitive Map Modification Orders (DMMOs). Objecting to a DMMO can be convoluted, so we will advise landowners to erect signs and take steps to prevent trespassing.
Alongside these issues, we’ll be on hand to advise on buying, selling or leasing farmland and commercial property in rural settings.
Awel Mai Hughes FALA, Partner, Agri Advisor
One of the key conversations we expect to have is around succession planning – which goes beyond facts and figures; it’s about the human impact and boils down to how you ultimately feel about succession.
Once your land agent, lawyer and accountant have provided you with their bespoke advice, you will then need to navigate three main factors:
The first is the mental shift—whether you are ready to make changes to the structure or ownership of your business. That shift may come easily or take time to process – or may be a response to the Chancellor’s Autumn Budget.
The second is the emotional shift required during sensitive discussions. You may have family members who are not emotionally ready to consider transferring assets or concerns over whether your successors are prepared for the responsibility. Emotional intelligence helps everyone be open and honest about their intentions.
Lastly, succession involves the physical shift—putting advice into action, such as signing documents, moving out of the farmhouse, or winding down the business.
For many, this is the hardest step. No matter which stage is most challenging, respect must remain at the forefront: respect within the family, for past generations, and for future ones who may embrace new ideas or choose another path.
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The Royal Welsh Show is the ideal time to explore these conversations with legal specialists in Wales who understand your business, your communities and your future plans.
The legal sector in Wales is a long-term supporter of the show, and you’ll find law firms on stands, at events and on site throughout the week.
For more information on collaborating with the legal sector in Wales to support agricultural business owners, visit legalnewswales.com or email editor@legalnewswales.com
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