SAC Rural Policy Centre

A unique characteristic of most agricultural systems as opposed to other economic sectors is the ageing working population and the way business ownership is traditionally transferred within the family. A rapidly changing political and economic climate presents challenges not least in terms of business planning for future generations. A limited understanding of the factors affecting succession decisions and limited scope for policy to intervene on this issue can compound the situation.

In Scotland, an ageing population of farmers demands a clear understanding of the issues surrounding farm succession in order to encourage young entrants into the sector and to ensure sustainability of farming. This point is recognised in the Scottish Governments Forward Strategy for Scottish Agriculture: Next Steps, where emphasis is placed on retaining talented young people in the industry and attracting enterprising new entrants; the development and publication of guidance on farm succession planning is one action that aims to meet this end.

This factshhet helps to inform the development of succession planning guidance by:

• Summarising existing evidence on retirement and succession in the Scottish farming sector.
• Summarising influential factors affecting succession in farm household businesses.
• Identifying policy options to encourage succession planning in farm household businesses.