Cynergy Bank’s latest Business Births and Deaths Index highlights the contraction of the agricultural sector.
It reports farm closures have outpaced new openings since Q2 2021, resulting in a net loss of 9,925 farms over that period.
Between July and September 2025, only 775 new agricultural businesses were established, compared with 1,360 closures, giving the sector a Cynergy Bank Business Health Score of 0.57, a score of 1.0 indicating no change.
It is the lowest score of any UK industry. In practical terms, for every 10 farms closing, fewer than six are being replaced.
The bank notes the rate of decline has accelerated sharply since October 2024, when chancellor Rachel Reeves’ announced changes to inheritance tax (IHT) relief on family farms.
Between October 2024 and September 2025, a record 6,270 agriculture, forestry, and fishing businesses ceased trading – up from 4,805 the previous year and the highest number since quarterly ONS data collection began in 2017.
Nick Fahy, CEO of Cynergy Bank, said: “With just half of closing agricultural businesses being replaced, the UK’s farming sector is facing unprecedented challenges. Rising costs, labour shortages, and recent changes to inheritance tax relief are driving an alarming rate of closures. This trend not only threatens the livelihoods of farmers but also the sustainability of rural communities and the wider economy.”
In the wider UK economy, July to September also saw more new businesses launch (73,450) than close (63,205), resulting in positive Cynergy Bank Health Scores across most industries.
