William Hargreaves from Savills explains what to consider when selling your farm:

Demand for farmland remains strong and – with the phasing out of the Basic Payment Scheme (BPS) and other financial incentives also becoming clearer – many farmers may use the end of the year as a chance to review the future of their business. In some cases, this could involve retirement and a farm sale.

East Anglian Daily Times: William Hargreaves, who leads the rural agency team for Savills in SuffolkWilliam Hargreaves, who leads the rural agency team for Savills in Suffolk (Image: RMG Photography)

This is often, understandably, a difficult decision – the holding may well have been in the same family for generations. But there are ways to make the sale process as smooth as possible:

  • Be sure of your decision – consult your solicitor and financial advisor. Think about tax liabilities, how the business structure can be dissolved and how the farm is owned.
  • Timing – we often advise selling in the spring when fields, hedgerows and trees have greened and wetter areas have dried, as this helps show the farm in its best light. Preparations should start in January or February, including finding relevant paperwork and making essential repairs.
  • Strategy – how can different marketing strategies, including social media, be used to contact the best buyers? Should the land be lotted to suit different buyer types? Should it be publicly advertised to create strong competition or placed privately? In the initial stages, it is also best to keep your plan to sell confidential. This will help ensure the biggest impact when the farm launches to market.
  • Preparation – ensure any legal and compliance matters are addressed early. Send title deeds to solicitors to make sure all boundaries are correct. Depending on the holding, other useful documents include cropping records, yield records, soil testing documents, lambing percentages, calving rates, milk yields and drainage improvements.
  • Be upfront – if your property has issues with rights of way, private water supplies or local developments, be open from the start. Buyers are less likely to lose confidence if you’ve made them aware of everything they need to know. 
  • First impressions – keep buildings in good order, cut verges and hedgerows as permitted, repair fencing and gates and fill in any potholes. Continue to farm as if you were staying. You can be compensated later or add a holdover clause to the sale agreement until harvest is completed.
  • Negotiation – having a trusted agent will help to smooth out any issues that might arise and they will, of course, handle all negotiations on your behalf. Price is important, but other factors to consider include: what is the likelihood of other offers being made? How are the buyers funding the purchase? What are the timings for exchange and completion?

For advice on the rural sector in Suffolk, contact William Hargreaves on 01473 234802 or WHargreaves@savills.com