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The changing structure and legal forms of farm businesses. Â
Many farms are still structured as sole proprietorships or partnerships, which can impact decision-making and succession planning. Family events like retirement, lack of successors, and generational transitions can trigger changes and restructuring in agricultural businesses.Â
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Concerns about the long-term viability and profitability of their farm businesses. Â
Factors like withdrawal of the Basic Payment Scheme (BPS) (the 2023 scheme year was the final year for BPS and is replaced by the delinked payments which will be made each year from 2024 unit 2027), changes to Sustainable Farming Incentives and Countryside Stewardship which are planned to be combined from Summer 2024, low output prices, high input costs, and general market uncertainty are putting pressure on farm incomes and making it difficult to maintain cash flow and reinvest. Â
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Challenges facing specific farm types like tenant farmers, livestock/dairy farms, and small farms. Â
Tenant farmers in particular struggle with rent payments, which is made harder by the loss of the BPS. There is a perception that new schemes like Environmental Land Management Scheme (ELM) are geared more towards larger farms.Â
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An aging farming population and difficulty attracting younger generations to take over the family farm. Â
The 35% of farmers are typically over the age of 65 years, and young people are increasingly drawn to urban areas rather than pursuing farming careers. In 2023 less than 20% of farmers were aged 16 to 44 years and of those 1% were aged 16 to 24 years.Â
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This update is for general guidance only and advice should be taken in relation to a particular set of circumstances.
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