"Succession planning cannot be easy in these uncertain times" says Brian Richardson, Virgin Money Head of Agriculture for the UK, "but farming can be positive about the future and needs to invest accordingly."

In the past nine months, the UK farming industry has faced a seemingly endless succession of major new challenges. Global cost inflation, the freezing of SFI applications in England, continuing concern over future support budgets and worries over what future trade deals with the US might mean for farming have added considerably to the gloom.

Into this climate of unsettling uncertainty, the Budget changes to IHT in March dropped a bombshell that forced many farm businesses to completely reassess their succession plans, but Brian Richardson suggests that against this unhelpful political and economic background, farming has in most sectors been doing better than might be expected, and even the IHT change has had a positive effect on succession planning.

"The agricultural industry has coped surprisingly well with inflation,  and output prices have been good in most sectors for a sustained period of time. Talking to many farmers across the country, succession has clearly been the main challenge to work through, and with support from professionals most have come up with a plan for their own business. For some it has helped focus attention on the future and brought those important family discussions forward. In spite of the adversity, farming is forging on."

This resilience is partly due to the industry's willingness to find new and better ways of farming, says the Virgin Money Head of Agriculture.

"Farming on its own can't do much about the wider economic headwinds the UK is facing, but in challenging times like these it is even more important every business looks closely at its performance and how it can place itself to best deal with challenges both present and future. Businesses which have worked on optimising performance and reducing costs today are best placed to be successful tomorrow."

There is some cause for concern in the industry's investment levels, says Brian Richardson. "After a marked slowdown in investment during Covid, investment levels have generally remained at lower levels since then, unsurprisingly given the external challenges and the doom loop of news about the industry. Whilst reduced farm borrowing is not a bad thing in itself, it does perhaps indicate the slowing of investment at a time of at least reasonable returns for many."

More encouraging is the growing investment in updating equipment to improve efficiency and productivity, using the latest technology and data to support those goals, from robotic milkers and electronic beef and sheep ID to GPS guided harvesting and application equipment.

Alongside investment in farming, Brian Richardson points to a welcome focus on developing non-farming enterprises like tourism, on farm renewable energy and conversion of farm buildings, helping to diversify income streams alongside the various environmental schemes that offer government funding to replace the disappearing BPS.

"I believe this is an exciting time for agriculture, and it's important the industry looks forward and invests in the future. The important message around food security and fragility of supply has started to get more focus and perhaps we all need to start being a little more positive in our message to the public. The UK's farmers are doing a great job feeding the nation at incredible value for money whilst looking after the countryside and supporting nature and biodiversity in its many forms."

Last October, Virgin Money became part of the UK's largest mutual, the Nationwide Building Society. Brian Richardson believes the Nationwide's ethos and vision dovetails completely with his own commitment to the agricultural industry.

"The focus of our own Agricultural team at Virgin Money has not changed at all, and with over 180 years of experience in supporting the industry we continue to develop and grow our market share in farming with a very experienced team of Agricultural Directors and Managers. In addition, we now are also part of the Nationwide's mission to make banking fairer, more rewarding and for the good of society, which fits perfectly with our involvement with the farming and rural sector."