Farming faces a triple whammy that will push many landowners to consider disposals

Matt Sudlow, director of prime rural consultancy Stoneacre Advisors https://www.stoneacreadvisors.com/ , said: “Farming faces a triple whammy that will push many farmers and landowners into making some difficult decisions.

“While there is still some interest in UK farmland from shrewd private and institutional buyers, the unexpected early closure of the SFI, changes to inheritance tax reliefs and the remodelling of  compulsory purchase orders heaps more woes upon the already beleaguered agricultural sector.

“The abrupt closure of the SFI applications is a huge shock. Many farmers were relying on SFI payments as a revenue stream and it’s just going to pile on even more pressure.

“In the meantime, there is the prospect of compulsory purchase orders becoming more aggressive and the likely removal of hope value in forced acquisitions.

“This is against a backdrop where landowners are already struggling to work out how to manage IHT challenges with the changing treatment of reliefs.”

He said: “With changes to IHT, the SFI and CPOs, on top of two poor harvests, the removal of the Basic Payment Scheme (BPS) and rising input costs, the outlook for farmers has fundamentally shifted.

“If farmers had sat down two years ago and worked out their worst-case scenario, it would be hard to imagine anything as challenging as this. It will sadly push more and more people to the edge of having to sell some or all of their land holdings. That said, this will lead to opportunities for buyers.”