FARMERS are feeling less optimistic about the future than they did in 2014, according to a survey conducted in association with South Lakes accountancy firm Moore and Smalley.

Based on interviews with over 100 farmers from across the region, the was conducted by MHA, a UK-wide group of accountancy and business advisory firms, of which Moore and Smalley is one of nine UK members. Findings of the survey showed:

•a continued desire for growth and diversification amongst the farming community, but less optimism than in 2014

an increase in the number of farmers undertaking co-operative farming arrangements; and that

•succession planning is of great concern for one in 10 – noticeably higher than in 2014.

Concerns over the availability of land and its cost continued to be a barrier, the survey also revealed.

For 2015, diversification is on the agenda for more farmers (up to 55 per cent from 40 per cent last year), including an upsurge in interest in harnessing renewable energy sources.

Liz Cliffe, head of the farming and rural business team at Moore and Smalley, said: “It is good to see there’s still a healthy optimism for growth and the desire to diversify among farmers; however, the survey indicated that 11 per cent of those surveyed felt that succession planning is still ‘of great concern’, which is noticeably higher than in 2014.

"With such a high concentration of family businesses passed on from one generation to the next and with the current favourable tax rules, succession planning is a vital consideration in securing the future of a farming business.”

Ms Cliffe added: “It is encouraging to see that 46 per cent of respondents indicated that they would turn to their accountant for financial advice and support on key issues such as succession planning and growth plans.”