Looking after the Farm when you can’t – the importance of putting Lasting Powers of Attorney in place

March 31, 2026

Farming businesses are unique. They often combine family life, land ownership, livestock management, machinery investment, and complex financial arrangements within a single enterprise. Unlike many other businesses, farms frequently rely heavily on the knowledge and decision-making of one or two key individuals. This makes forward planning essential. One of the most important yet frequently overlooked aspects of this planning is putting in place appropriate Lasting Powers of Attorney (LPAs).

For farmers, putting in place a Property and Financial Affairs Lasting Power of Attorney specifically for the business is vital in protecting the continuity of the farm and safeguarding family assets should something unexpected happen.

Understanding Lasting Powers of Attorney

A Lasting Power of Attorney is a legal document that allows a person (the Donor) to appoint trusted individuals (Attorneys) to make decisions on their behalf if they lose the mental capacity to do so themselves. Loss of capacity can occur suddenly through illness, accident, or medical conditions such as dementia or stroke.

Without an LPA in place, family members or business partners cannot automatically step in to make decisions. Instead, they will need to apply to the Court of Protection for authority to act. This process can be lengthy, costly, and stressful, with the Courts suggesting a timeline of six months, however, in practice these can often take a lot longer to come in. Applications can now be made on line, which is assisting with the six month target, however, it is very case dependant. Further, you would not be able to choose who is granted the order, and the same person may end up handling your personal and business affairs.

For a working farm, where decisions need to be made daily, such delays could seriously disrupt operations, leading to severe financial consequences.

The Role of a Property and Financial Affairs LPA

A Property and Financial Affairs Lasting Power of Attorney allows Attorneys to manage the Donor’s personal financial matters. This can include:

Managing bank accounts
Paying bills and taxes
Collecting income
Handling investments
Managing property ownership

For farmers, personal and business finances are often closely connected. Land ownership, mortgage arrangements, and tax planning may sit within an individual’s personal Estate rather than within the separate business structure.

If the farmer who manages these financial matters loses their mental capacity without an LPA in place, essential transactions may be frozen. Banks may refuse to allow access to accounts, and important financial obligations, such as bills and wages, could go unpaid. With a Property and Financial Affairs LPA, appointed Attorneys can step in immediately and ensure that financial matters continue to be handled efficiently.

Why Farmers Should Also Consider a Business LPA

While a Property and Financial Affairs LPA covers personal finances, it may not always be appropriate for such Attorneys to have full authority over business decisions. This is where a Business Lasting Power of Attorney becomes particularly valuable.

A Business LPA specifically relates to the management of the farming business. It allows the donor to appoint Attorneys with the appropriate skills and experience to handle operational matters such as:

Buying and selling livestock
Managing staff and contractors
Entering supply agreements
Ordering feed, seed, or equipment
Negotiating with suppliers or buyers

This separation can be extremely useful in farming families. For example, a spouse or family member may be best placed to handle personal finances, while a business partner, farm manager, or experienced child may be better suited to manage day-to-day agricultural operations.

It is of course important to seek legal advice when putting any legal documents in place, but this is particularly important for a Business LPA. This is because you will need to review the documents that govern the operation of the business to ensure that an Attorney can make decisions on your behalf, and then ensure that the Business LPA appoints your Attorneys to act in this way.

By creating a Business LPA, the farmer can ensure that the right people are responsible for the right decisions.

Protecting the Continuity of the Farm

Farms operate within tight seasonal cycles. Crops must be planted and harvested at specific times, livestock require constant care, and machinery must be maintained and used efficiently. If the individual who normally makes key decisions suddenly loses capacity, delays in decision-making could result in serious financial consequences. Missed planting windows, failure to purchase feed, or delayed livestock sales could quickly impact profitability.

Having a Business LPA in place ensures that someone of your choice, with appropriate knowledge, can continue running the farm without interruption. This helps protect both the income of the business and the livelihoods of those who depend on it.

Supporting Succession and Family Planning

Many farms are family-run businesses that have been passed down through generations. Succession planning is therefore a critical part of long-term agricultural strategy.

LPAs form an important part of this planning. They allow farmers to gradually involve the next generation in decision-making and ensure that trusted individuals can step in if needed. Without LPAs, family members may face uncertainty about who has authority to act. This can create tension or disagreement during what is already a difficult time.

By clearly documenting decision-makers in advance, farmers can reduce potential disputes and provide reassurance to both family members and business partners.

A Practical Step for Risk Management

Farmers are accustomed to managing risk – whether through crop planning, livestock health management, or diversification. LPAs should be viewed as another practical tool within that risk management strategy.

Just as insurance protects against physical risks, LPAs protect against the legal and financial risks associated with loss of capacity.

For farmers, the combination of a personal Property and Financial Affairs Lasting Power of Attorney and a Business Lasting Power of Attorney provides vital protection for both personal assets and the farming enterprise. These documents ensure that trusted individuals can continue making important decisions if the unexpected happens. They help safeguard the smooth operation of the farm, protect family finances, and avoid unnecessary legal complications.

Given the complexity and importance of modern farming businesses, putting appropriate LPAs in place is not simply good legal practice – it is an essential part of responsible farm management and long-term planning.

How we can help

If you would like to put a Lasting Power of Attorney in place, now is the time to act. Please contact us and a member of our team will guide you through the process with clear, practical advice tailored to your circumstances.

Nicole Miller

Legal Director, Private Wealth & Inheritance

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This reflects the law and market position at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought in relation to a specific matter.