Insight from the Great Yorkshire Show: what does the future hold for farmers and landowners in York and North Yorkshire?
Introduction
The release of the “Review of the state of farming finance and challenges faced” report on the first day of the Great Yorkshire Show on 8 July 2025 provided an interesting insight into farm finances and the challenges facing farming communities in the region.
The report, commissioned by York and North Yorkshire Combined Authority Mayor, David Skaith, and conducted by Strutt and Parker, has sparked discussion and interest among farmers, landowners and rural professionals, not least in light of the Finance Bill 2025-26, which was published on Monday, confirming that the Government intends to push through the inheritance tax changes it proposed in the October Budget.
Speaking at the CLA breakfast on the morning the report was released, the Mayor acknowledged the uncertain and volatile environment facing farmers and landowners. He admitted to not being from an agricultural background but was keen to apply the lessons that he had learnt from steering a retail business through the difficulties posed by the Covid-19 pandemic to helping farmers and the rural economy through similarly choppy waters. He clearly recognised the need to get informed on the state of the rural economy as part of his role and the importance that farming plays to the economy within the region.
Key findings from the report
One of the report’s key findings was that more than half of all farms in York and North Yorkshire are not making a sustainable profit. This worrying statistic is a result of rising input costs, unpredictable weather due to climate change, policy changes and a squeeze on profit margins.
This figure is predicted to increase further due to the phasing out of the Basic Payment Scheme and intended inheritance tax changes. The report’s estimate of the impact that the inheritance tax changes are likely to have was stark – costing the region up to £1.8 billion unless proper planning is in place. This estimate is in contrast with the Government’s policy paper on agricultural property relief and business property relief reforms, released on Monday, which suggests that the change to inheritance tax “is not expected to have any significant macroeconomic impacts” and will only result in 0.3% of UK estates paying more inheritance tax is 2026-2027 than they would previously have been liable to pay.
The sudden closure of the Sustainable Farming Incentive and changes to business property relief and agricultural property relief have created feelings of distrust and uncertainty. The message from farmers is that they desperately need clarity and that they are frustrated by short-term policy, and policy changes, hindering long-term planning.
Addressing wellbeing and mental health
The report also recognised the impact of political and financial instability on the health and wellbeing of farmers. In his speech, the Mayor made reference to issues of stress, anxiety and loneliness impacting farmers, alongside the physical demands of the job and the importance of addressing these issues through the provision of greater support and services.
Opportunities for growth
The report was not all doom and gloom. More positively it explored the opportunities available to farmers and landowners to increase resilience and improve profitability. The report states that “only 5% of factors affecting farm performance are out of the farmers’ control” and suggested that “almost all the determinants of success are down to the individual, the decisions made on the farm and how they are implemented”.
The implication is that with the right information and support, change is possible. This was echoed by the Mayor, who said that the focus should be on what can be controlled, and how farmers and landowners can achieve success within the current environment.
Ways to achieve improved performance include implementing new technology and innovative practices such as precision farming, taking advantage of diversification opportunities, expanding training and skills development to address labour shortages, setting goals and monitoring budgets and supporting collaboration between farmers through the sharing of resources.
Building resilience for the future
It has never been more important for farmers and landowners to plan for the future and to consider the resilience of their businesses. In the case of changes to the inheritance tax regime, the report advises farmers and landowners to seek professional advice to mitigate exposure, and to encourage strategic thinking about succession and business planning. This proactive approach is vital for building resilience and ensuring the long-term sustainability of farming enterprises.
The Mayor concluded his speech by saying that “this is about more than surviving the next few years – it’s about building a stronger future for farming across York and North Yorkshire”.
What we can learn
In a time of great uncertainty and worry for many in the rural community, it is great to see proactive steps being taken to drive a positive message for the future. We look forward to seeing how the report can be used to influence farming policy positively and to encourage strategic planning and resilience building by farmers and landowners in the region and indeed beyond.
Adapting to change and seeking the opportunities that change can offer is at the core of our advice to our landed estate and farming clients and, while there are clearly challenges ahead, we relish those challenges and helping our clients to steer through them.
Field Notes is Charles Russell Speechlys’ weekly agricultural law blog, sharing plain-English insight into the legal and policy issues affecting agriculture, agricultural land and rural business life. From hints and tips on avoiding agricultural disputes, pitfalls to keep an eye out when planning for tenancy or family agri-business succession, to the latest agricultural legislative or policy changes and the most interesting farm-related court decisions, Field Notes makes the complex more understandable, always grounded in the realities of life on (and off) the land.
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