Members of NFU Cymru Council - the union’s governing body, made up of farmers from across Wales, representing farms of all sizes and in all sectors - gathered in Cardiff on Monday 20 January for a meeting to discuss issues affecting the industry.
Top of the agenda
Top of the agenda was the UK Government’s planned changes to agricultural property relief (APR) and business property relief (BPR) announced in the October budget. Dame Nia Griffiths MP, Parliamentary Under-Secretary of State for Wales, attended the meeting giving members the opportunity to voice their fears over the detrimental impact the proposals will have on their businesses, along with other issues.
Farmers addressing the Minister expressed their concern at the huge disparity between the UK Government financial data, upon which its APR policy figures are based, and the true value of the average farm, its infrastructure and the reality of the situation facing farming families. UK Government estimates that only 500 UK farms a year will be affected by the changes, however union data – provided by independent third party analysis – indicates around 75% of farms will be affected.
Costly tax burden
During the session, many members expressed their inability to meet the costly tax burden brought about by the inheritance tax proposals. Farmers cited the recently released Welsh Government farm business income statistics as an example of the challenging financial margins many farms are working within. These figures, farmers say, provide further evidence that many businesses simply do not have the capital to pay the incoming tax burden without selling land and/or reducing their productive capacity.
"Unless the UK Government is prepared to rethink, our members will be put in the invidious position of having to choose between selling assets, reducing productive capacity or finishing farming altogether."
Aled Jones, NFU Cymru President
Speaking after the meeting, NFU Cymru President Aled Jones said: “We are grateful to the Parliamentary Under Secretary of State for Wales for joining our meeting today and hearing the heartfelt concerns of our members. During the session the Minister heard a long list of practical concerns and worrying ramifications that these businesses have had imposed on them as a result of the October budget proposals. Unless the UK Government is prepared to rethink, our members will be put in the invidious position of having to choose between selling assets, reducing productive capacity or finishing farming altogether. At a time when the challenges around feeding a growing population could not be more pertinent, the UK simply cannot afford to see food security jeopardised.
Cross-section of views and opinions
“I have implored the Parliamentary Under Secretary to share with her colleagues the concerns heard at NFU Cymru Council today and to echo our call to pause the proposals, consult and undertake a comprehensive impact assessment that considers the long-term impact of these changes on farming families and food production.”
NFU Cymru Deputy President Abi Reader said: “Our NFU Cymru Council is made up of farmers from across Wales and it’s a useful cross-section of views and opinions from across the Welsh farming community. Of the 40 members in attendance, at least 80% said they were going to be affected by the proposed changes. As a representative sample, this brings into serious question the UK Government’s assertion that only 500 UK farms are going to be affected each year.
“It’s imperative that these changes are based on robust, reliable data and for that reason UK Government needs to revisit this policy and restore some much-needed confidence to the sector.”