2023 saw a record year for farm dispersals, second-hand machinery and land sales and halfway through 2024, the trend is showing no sign of abating.
Land sales in 2023 were up by 20%, and in the first quarter of 2024, the figure was already 6% higher than the preceding year. In total, circa 157,000 acres were marketed in 2023.
The figures for farm machinery dispersal sales follow a similar trend, with an East Anglian firm reporting record sales totalling £71m in 2023. Those leaving the industry will be keen to realise the best value for their assets, and with the market for second-hand machinery stronger than ever, a collective sale is often viewed as the best way to dispose of anything from high-value equipment to pallets of bent drying ducts.
Whichever way you look at it, the uptick in both land sales and dispersal sales point to a worrying trend; the UK is losing its farmers. Gov.uk data shows that the total number of people working on agricultural holdings decreased 2.9% between 2022 and 2023. In terms of total holdings, comparing 2018 and 2023 the UK lost circa 9,000 working farms (209,000 down from 218,000).
What does this mean? Experts attribute these trends to the increasingly difficult times in farming, with many farmers opting for retirement or diversification into alternative industries. The reasons behind this shift are multifaceted, but some potential contributing factors include the increasing age of the average farmer, lack of succession planning, and difficulties in finding reliable labour and access to affordable finance. Additionally, the ongoing challenges posed by Brexit, climate change, and environmental regulations may also be driving some farmers to reconsider their involvement in the industry. Some even use the phrase “the three D’s”; death, divorce, debt. As gloomy as this sounds, it isn’t something which should be ignored.
This brings into focus another topic; young farmers and the accessibility of the industry to the younger generations. But that’s something we’ll cover in another blog!
As the number of experienced farmers leaving the industry increases, the loss of knowledge and expertise accumulated over generations could have a significant impact on farming practices, potentially leading to a decline in productivity and competitiveness. Furthermore, rural communities that rely heavily on agriculture may experience a decline in economic activity and population growth.
It is crucial for policymakers, agricultural organisations, and farmers themselves to further dive into the root causes of this trend and develop strategies to address the issue. This could involve initiatives to support succession planning, provide training and development opportunities for younger farmers, and promote more affordable access to finance and resources.
MorePeople have recently released a White Paper on Succession Planning, which may be relevant to those struggling to see where the future of their farm lies.
