Sharper scrutiny of business performance should be a priority for farmers and landowners in 2026, suggests land and property specialists Strutt & Parker.
Kate Moisson, head of rural, says: “We are entering a pivotal period for the rural sector, with the current challenges underscoring the importance of both strategic planning and management excellence to keep farms and estates firmly on the front foot.
“It follows a testing year for land managers with erratic weather, volatile commodity markets, rising labour costs and changes in policy putting many businesses under pressure. However, there is cause for cautious optimism. Land – and what it can offer society – has never been more in demand, opening the door to potential new income streams.”
The company suggests that despite this challenging backdrop, there is room for improvement on many farms if businesses focus on the areas they can control – from budgeting and benchmarking to performance monitoring and de-risking. Those prepared to adapt and take a forensic approach to every detail of their business are the ones most likely to prosper in the years ahead.
With lower margins Strutt & Parker advises more arm and estate owners to look at their businesses holistically. A farm business review – or full strategic estate review – allows families to clarify their long-term goals and see if changes are needed to what they do and why.
It also advises that diversification options are considered, something it expects to play a bigger role in 2026 as farms and estates look to reduce their reliance on agricultural returns. Renewables, tourism, leisure, natural capital projects, commercial space and food enterprises are all gaining traction.
However, diversification must align with the wider farm or estate strategy, as projects can require significant capital, management time and specialist skills. Landowners are also increasingly looking for projects that enhance social value and bring positive benefits to their local communities.
