A NEW retirement scheme is coming to the South East to support the region’s farmers.
Last month, the Government announced new plans to encourage more environmentally-friendly farming.
Currently, farmers receive a flat rate per acre, but this will be phased out over the next six years.
The new retirement scheme could see participating farmers get a lump sum payment next year instead.
Simon Pallett, partner at Carter Jonas property consultancy, said it would encourage succession and support farmers who are thinking about retirement.
“The average age of farmers is around 60 and a major hurdle to succession planning is a lack of retirement provision and housing, particularly for tenant farmers,” he said.
“This is an all-or-nothing scheme with a commitment to leave the industry, preventing partial or phased retirement.”
But Mr Pallett said the scheme will not suit everyone.
“The principle is right, providing the farmer receives an adequate net sum,” he explained. “Sole traders in the South East who are approaching retirement age should be considering their future and making succession plans, and they stand to benefit the most.
“But it probably won’t suit those businesses with complicated structures.”
He added: “As always, the devil will be in the detail and there are some significant questions still to be answered”.
Further details are expected by November.
