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Why financial advice is essential when farmers diversify or sell land
Amy Woolliscroft12th February 2026
Across the UK, many farming businesses are facing significant change. Rising costs, evolving subsidy regimes, environmental schemes, and succession pressures are encouraging farmers to look beyond traditional agriculture. For some, this means diversifying into new ventures; for others, it involves selling land or even the whole farm to unlock value built up over generations.
While these decisions are often driven by practical or emotional factors, the financial consequences can be substantial and long-lasting. This is where taking professional financial advice becomes not just helpful, but essential.
High-value decisions with long-term consequences
Land and farms are typically a farmer’s most valuable assets. Selling land, entering a joint venture, or converting buildings for alternative use can involve large sums of money and irreversible decisions.
Without careful planning, farmers may face:
- Unexpected tax liabilities
- Missed reliefs or allowances
- Poorly structured investments of sale proceeds
- Long-term income shortfalls
- Complications around succession or inheritance
Taking advice early helps ensure diversification or sale decisions are aligned with both immediate needs and long-term goals, protecting the value of what may represent a lifetime’s work.
Supporting diversification plans
Diversification can open new opportunities such as holiday lets, renewable energy projects, commercial property, leisure ventures, or environmental schemes. However, these opportunities often bring unfamiliar financial risks.
Financial advice can help farmers:
- Assess the financial viability of diversification projects
- Model cash flow and funding requirements
- Decide whether to retain land, lease it, or bring in partners
- Ensure diversification fits alongside retirement and succession plans
Having a clear financial framework allows farmers to pursue new ventures with confidence, rather than uncertainty.
Navigating complex tax considerations
Tax is often one of the biggest risks when selling land or restructuring a farming business. Capital Gains Tax, Inheritance Tax, Income Tax and VAT can all come into play, sometimes at the same time.
Working alongside other professional advisers, such as land agents, accountants and solicitors, a financial adviser can help:
- Clarify how much tax may be payable and when
- Structure disposals to make use of available reliefs, such as Business Asset Disposal Relief or Agricultural Property Relief (where applicable)
- Plan the timing of sales to manage or spread tax liabilities
- Avoid common pitfalls that could invalidate valuable reliefs
Once a transaction is completed, many tax planning opportunities are lost, making early advice particularly important.
Turning capital into sustainable income
For farmers selling land or stepping back from day-to-day operations, one of the most pressing questions is whether the proceeds will provide long-term financial security.
Financial advice can help turn capital into sustainable income by:
- Creating an investment strategy aligned with risk tolerance and future plans
- Balancing income needs with capital preservation
- Planning for inflation, longevity, and market volatility
- Ensuring funds remain accessible when needed
This is especially important for farmers who have historically reinvested profits back into the business and may have limited experience managing large cash sums or investments.
Succession, family, and legacy planning
Decisions about land sales or diversification rarely affect just one individual. They often have wide-ranging implications for family members, future generations, and the continuity of the business.
A financial adviser can help bring clarity by:
- Integrating diversification or sale plans into wider succession strategies
- Ensuring fairness between farming and non-farming children
- Supporting retirement planning while preserving family wealth
- Reducing the risk of disputes or unintended outcomes
Although these conversations can be sensitive, structured advice helps families make informed and balanced decisions.
In conclusion
For farmers considering diversification or selling land, the stakes are high. The right decisions can secure financial independence, support future generations, and create new opportunities. The wrong ones can result in unnecessary tax, lost income, and lasting regret.
Taking financial advice early helps ensure that these major transitions are carefully planned, tax-efficient and aligned with both personal and business goals, protecting not just assets, but the future they are meant to support.
About Accession
At Accession, we offer high-quality, face-to-face Chartered Financial Advice and planning for farmers and rural businesses, specialising in investment planning, protection planning, retirement planning, and inheritance tax planning.
We understand that farming families and rural businesses have unique needs, and we’re dedicated to building long-term relationships grounded in trust. We take the time to get to know you and your goals.
Whether you're planning for retirement, seeking tax-efficient strategies, or protecting your family and assets, we help you build a clear and solid financial plan with advice that is tailored to ensure it fits your business and family’s needs.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
SJP approved 13/1/2026