How farmers can build resilience amid food security worries
By Andrew Heskin, Partner and ARA specialist
The UK’s food security is under threat.
A recent report by the National Preparedness Commission has warned that climate change, global trade instability, and a lack of long-term Government strategy are putting increasing pressure on farmers.
From extreme weather damaging harvests to rising costs and potential tariffs on food imports, farmers face growing financial uncertainty.
In this environment, building financial resilience is just as important as improving soil health or investing in better machinery.
Strengthening cash flow to withstand food supply shocks
With extreme weather events becoming more frequent and global conflicts disrupting trade routes, supply chain shocks are a reality.
Managing cash flow effectively can help farmers navigate these disruptions.
Keep a financial buffer
Unexpected costs, such as storm damage, rising fertiliser prices, or livestock disease outbreaks, can put huge strain on farm finances.
Setting aside cash reserves can help cushion these shocks.
Review supplier contracts
If input costs are volatile, lock in pricing with key suppliers where possible to avoid sudden price hikes.
Succession and tax planning – preparing for future policy changes
There is ongoing debate about the role of tax relief in supporting farm businesses, with recent proposals suggesting changes to Inheritance Tax (IHT) and Agricultural Property Relief (APR).
Farmers should start reviewing their succession plans now to avoid potential tax difficulties.
- Work with our accountants to explore tax-efficient ways to pass down assets.
- Consider gifting land earlier to take advantage of current tax reliefs.
- Monitor changes to APR and Business Property Relief (BPR), as these could impact the financial viability of family farms.
Investing in long-term resilience
Beyond financial planning, making the right operational investments can help farms withstand environmental and economic pressures.
- Invest in sustainable farming practices – Regenerative agriculture, improved water management, and soil health initiatives can increase productivity while reducing vulnerability to climate shocks.
- Take advantage of Government schemes – Grants such as the Sustainable Farming Incentive (SFI) and environmental land management schemes can offer financial support for resilience-building projects.
- Insure against risk – Extreme weather events are becoming more frequent. Crop insurance, livestock insurance, and business interruption cover can help protect farm finances.
Food security and the role of UK farmers
The UK still imports nearly a third of its food from the EU, and without a national food security strategy, many farmers are left to manage risks on their own.
However, this also creates opportunities. UK-grown food could become even more valuable in the coming years.
Farmers who plan ahead, invest in resilience, and secure their financial position will be best placed to weather future disruptions and benefit from shifting food demand.
Preparing for an uncertain future
The risks to UK food security are real, but proactive financial planning can help farmers stay in control.
By managing cash flow carefully, keeping an eye on policy changes, and investing in long-term resilience, farmers can build a stronger, more secure future.
If you need help with tax planning, cash flow management, or securing funding, our team is here to support you. Get in touch today to discuss how we can help your farm prepare for whatever comes next.