The recent Autumn Budget introduced significant changes to inheritance tax that will impact the agricultural community, particularly in terms of Agricultural Property Relief (APR) and Business Property Relief (BPR). Beginning in 2026, these reliefs will be capped, potentially resulting in greater inheritance tax liabilities for farms whose assets exceed a £1 million threshold. This change has raised concerns among farmers, especially those managing family farms, as increased tax obligations could threaten the viability of passing farms down to the next generation.

How agricultural finance can support farmers through policy changes

Agricultural finance can provide essential support for farmers adapting to these new challenges. One key area where agricultural finance can make a difference is in asset restructuring and estate planning. Many agricultural finance providers like us offer specialised products designed to help farmers manage tax liabilities more effectively. Through restructuring options and tailored financial tools, farmers can organise their assets in a way that minimises tax impact and facilitates smoother transitions of ownership within families, helping them retain their farms without overwhelming tax burdens.

Diversifying income streams for financial resilience

Diversification is another strategy that agricultural finance can support, providing farmers with a buffer against the financial impact of these policy changes. Diversifying income streams—whether through renewable energy projects, agritourism, or other supplementary ventures—can reduce reliance on traditional farming income. By financing these new ventures, agricultural finance allows farmers to increase financial resilience and maintain more stability in times of uncertainty.

Investing in efficiency

Modernisation and efficiency improvements are also critical for farmers facing economic pressures, as upgrading machinery and adopting new technology can help them operate more efficiently. Financing options for these types of investments enable farmers to enhance productivity and potentially reduce costs, ultimately helping them offset financial pressures arising from the recent tax changes.

For day-to-day expenses and managing cash flow, working capital loans can provide much-needed flexibility. These types of loans offer farmers the breathing room they need to maintain operations smoothly, even while adapting to new financial demands. Access to working capital ensures that farms can continue running effectively, giving farmers the capacity to handle unexpected costs without straining their finances.

Mental health support resources for farmers

The pressures associated with these recent policy changes can understandably feel overwhelming, and many farmers are experiencing significant stress and anxiety about the future. For those struggling with the mental toll, support is available through several organisations dedicated to assisting the farming community.

• The Royal Agricultural Benevolent Institution (RABI) provides a free, 24-hour helpline (0800 188 4444), offering a compassionate ear and guidance for those in need. 

• Similarly, RSABI supports farmers in Scotland, with assistance accessible via their helpline at 0808 1234 555. 

• In Wales, the DPJ Foundation offers mental health support through their helpline at 0800 587 4262, or via text on 07860 048799 for those who find it easier to reach out that way.

• For farmers in England, the organisation YANA (You Are Not Alone) operates a helpline specifically focused on rural mental health, available at 0300 323 0400 during weekday mornings.

• Another option for farmers nationwide is the Farming Community Network (FCN), which provides a support line at 03000 111 999. 

In a time of uncertainty, it’s important to remember that resources are available to help farmers both financially and emotionally. 

While the recent budget changes may seem daunting, agricultural finance offers pathways to adapt and plan for the future, and mental health support is just a phone call or text away. 

How Peregrine Finance can help

At Peregrine Finance, we can help provide agricultural finance options tailored to help you. This includes initial capital for grant applications, finance for machinery and operations, and lots more. 

Speak to our experts, tell us your queries and we’ll try to come up with a financial solution together.