Farming's changing mindset as the sector plans for a different future

There are strong signs that farming businesses are becoming more proactive, more structured in their planning, and increasingly willing to adapt to changing circumstances.

Armstrong Watson's latest Family, Privately Owned and Owner-Managed Business Survey - which received responses from 144 farmers - reveals evidence of an agricultural sector that’s responding with forward planning, long-term thinking and a willingness to embrace new opportunities.

Succession conversations are happening

This year’s survey indicates a notable shift in attitudes towards succession planning. Discussions around Agricultural Property Relief (APR) and Business Property Relief (BPR) have undoubtedly contributed to greater focus on the issue, and responses reveal many farmers are taking a proactive approach to planning for the next generation.

Undoubtedly linked to the reforms to Inheritance Tax (IHT) reliefs, 45% have reviewed their succession plans and taken action, while a further 17% have reviewed their plans and are yet to act, and 21% intend to review their arrangements.

Unlike many industries, ownership, management and family relationships are often closely intertwined. Decisions can affect not only the future of a business but also a family's wealth, livelihood and identity.

Our survey shows two-thirds of respondents intend to pass their business to their children, and encouragingly, 79% of those intending to transfer the business say the next generation is already involved, and 78% have discussed their intentions with them.

These findings suggest many families are recognising that successful succession is about much more than legal documents or tax planning. It requires communication, preparation and a shared understanding of the future direction of the business.

Business planning is becoming more strategic

Our survey responses also point to a growing culture of formal planning, with 57% who have already incorporated succession planning into their business plans.

More than three-quarters of respondents have a business plan with actionable goals - with 37% clearly documenting this, compared to only 7.5% in 2025 - demonstrating that many farming businesses are taking a structured approach to the future.

This matters because farming continues to operate within an increasingly complex environment. Rising costs, changing regulations, policy reform and evolving market conditions are creating challenges that cannot always be solved through traditional approaches alone.

Artificial intelligence divides opinion but engagement is growing

Technology provides another interesting insight into changing attitudes. Our 2026 survey shows 30% of farming businesses are using artificial intelligence (AI) while 19% are considering it. While this is a considerable increase from the 3% using it and 13% considering it in 2025, 40% of farmers in our survey still believe it isn’t relevant to their operations but the conversation is happening! AI is no longer something that sits outside agriculture. It’s increasingly becoming part of the broader discussion around productivity, efficiency and future competitiveness.

Planning for the future

It’s encouraging to see that many businesses aren’t standing still. Rather than postponing difficult decisions, farmers are actively reviewing ownership structures, succession plans and future business strategies, and the businesses best placed for the future will be those that view succession as part of wider business planning rather than simply a tax exercise.

Our survey respondents also highlighted a sector that is adapting. Whether that’s investing in technology, exploring AI, or putting more formal business plans in place, many farming businesses are taking practical steps to improve resilience and prepare for future challenges. While there remains uncertainty around policy and taxation, farming businesses are being proactive, with clear evidence of forward planning and a willingness to evolve.