In most careers the harder you work, the more you get rewarded. Being a farmer is different, as the amount that can be earned from the land is governed by prices set on global markets – which can vary hugely from year to year.
Sure, the hardest working and most efficient farmers will earn more when compared to their peers, but even they cannot escape the huge swings in profitability.
This means that financial planning for the long term can be difficult. Not having a regular and reliable income adds plenty of complexity to what should be the relatively straight-forward task of looking after your future, while keeping your tax affairs in order.
With 2025 shaping up to be a strong year for farm incomes, it is particularly important to take advantage of any extra cash this year to help with future costs – whether it is towards known expenses like sending kids to college, saving towards a pension, or even just putting money aside for the rainy day, which is certain to come.
If a farmer goes through their career without building any nest egg or a savings buffer for the unexpected, they will find themselves in the unfortunate situation of having to borrow to fund unexpected bills. Repaying these loans will eat into future saving opportunities and possibly delay pension contributions.
Farmers can have a comfortable retirement if they contribute regularly to a pension plan over their lifetime. Failure to get a pension in place means that some farmers are forced to work for many years past the normal retirement age, only stopping when the physical demands of the job become too much.
Over the next few pages, we will look at the options available for putting money aside, why a proper pension plan is one of the best investments you can make in your future, and how to reduce your tax bill as much as possible along the way.
For busy farmers, taking care of their business is always their main focus. As well as the tasks which need to be completely outside on the land or in the shed or parlour, this also means being their own financial planner when it comes to decisions about investments, pensions and savings.
There is no financial advice in these articles – we would never presume to tell anyone what to do with their own money, and are certainly not qualified or licensed for that – but after reading them we hope that you will have a better idea of what options are open to you, and what questions to ask when you do talk to a qualified financial adviser, whether that be on pensions, tax or savings.
In most careers the harder you work, the more you get rewarded. Being a farmer is different, as the amount that can be earned from the land is governed by prices set on global markets – which can vary hugely from year to year.
Sure, the hardest working and most efficient farmers will earn more when compared to their peers, but even they cannot escape the huge swings in profitability.
This means that financial planning for the long term can be difficult. Not having a regular and reliable income adds plenty of complexity to what should be the relatively straight-forward task of looking after your future, while keeping your tax affairs in order.
With 2025 shaping up to be a strong year for farm incomes, it is particularly important to take advantage of any extra cash this year to help with future costs – whether it is towards known expenses like sending kids to college, saving towards a pension, or even just putting money aside for the rainy day, which is certain to come.
If a farmer goes through their career without building any nest egg or a savings buffer for the unexpected, they will find themselves in the unfortunate situation of having to borrow to fund unexpected bills. Repaying these loans will eat into future saving opportunities and possibly delay pension contributions.
Farmers can have a comfortable retirement if they contribute regularly to a pension plan over their lifetime. Failure to get a pension in place means that some farmers are forced to work for many years past the normal retirement age, only stopping when the physical demands of the job become too much.
Over the next few pages, we will look at the options available for putting money aside, why a proper pension plan is one of the best investments you can make in your future, and how to reduce your tax bill as much as possible along the way.
For busy farmers, taking care of their business is always their main focus. As well as the tasks which need to be completely outside on the land or in the shed or parlour, this also means being their own financial planner when it comes to decisions about investments, pensions and savings.
There is no financial advice in these articles – we would never presume to tell anyone what to do with their own money, and are certainly not qualified or licensed for that – but after reading them we hope that you will have a better idea of what options are open to you, and what questions to ask when you do talk to a qualified financial adviser, whether that be on pensions, tax or savings.
SHARING OPTIONS