This message comes following the new UK Government’s first budget with the union expressing its fears for the future of the family farm following the changes to APR and BPR announced in today’s Autumn statement.
'Threat to our family farm'
NFU Cymru President Aled Jones said: “The changes announced today are not only a threat to our family farm structure and our tenanted sector but also to our nation’s food security. The sort of restructuring we are likely to see in response to these changes is likely to mean there will be less land available for tenancies and contracts, the lifeblood of small family farm businesses and a critical point of entry for young and first-time farmers.
“NFU Cymru has written to the Chancellor twice and all Welsh MPs on this issue. In addition, the union and its members have raised this extensively when we have met with politicians at party conferences as well as in their constituencies. Despite all of these efforts, today’s budget confirms the UK Government’s intention to reform these reliefs and that will come as very disturbing news to farming families the length and breadth of Wales. This also goes against the previous assurance given by the Defra Secretary of State that the Labour Party had no plans to change Inheritance Tax, including APR.
Misguided
“This tax-raid on agricultural property and businesses is misguided and will seriously harm our family farms, rural communities and our ability to produce affordable food for the nation, whilst delivering negligible revenue to the Treasury in terms of overall government spending.
“The changes announced today will see agricultural assets over £1m attract an inheritance tax at a rate of 20% from April 2026, something which will bring the majority of Wales’ family farms into the scope of this tax. Just because a family farm may look like a valuable asset on paper, that doesn’t mean those who work it are wealthy and able to meet a large tax bill.
Breakup of family
“Whilst there is typically a lot of capital involved in farm businesses, the return on the capital employed in farming, after taking into account a wage for the farmer, averages less than 1%. Such a rate of return is completely insufficient to pay an inheritance tax charge of 20% upon the generational transfer of that farm. Unless we see an urgent reconsideration by the UK Government, I am afraid we are going to see the breakup of multi-generational family farms.”
Read our in-depth analysis
NFU Cymru members can log in to read the analysis below.
Sections covered in this NFU Cymru briefing include:
- The Economy
- Inheritance Tax – APR and BPR
- The Agriculture Budget
- Capital Gains Tax increase
- Income tax
- Carbon Border Adjustment Mechanism (CBAM)
- Increases in the National Living Wage and National Minimum Wage
- National Insurance Contributions paid by employers
NFU Cymru Lobbying work - Budget
NFU Cymru submits evidence to Welsh Affairs Committee
NFU Cymru sends submission to the House of Commons’ Welsh Affairs Committee on the impact of the Autumn Budget on Welsh agriculture
NFU Cymru members challenge APR changes in Westminster
NFU Cymru members joined farmers from around the UK in London, in a massive show of strength and unity against the UK Government’s inheritance tax reforms
NFU Cymru officeholders attend Welsh Labour Party Conference
Aled Jones and Abi Reader lobbied Welsh MPs on changes to Inheritance Tax, during the Party Conference in landudno
NFU Cymru President meets with Jo Stevens, Secretary of State for Wales
NFU Cymru President meets with Jo Stevens, Secretary of State for Wales following the NFU Cymru letter requesting an urgent meeting to discuss Agricultural Property Relief.
NFU Cymru writes letter to Jo Stevens, Secretary of State for Wales
NFU Cymru writes a letter to Jo Stevens, Secretary of State for Wales - Agricultural Property Relief & Request for an urgent meeting
NFU Cymru expresses its fears for the future of the family farm following the changes to APR and BPR announced in the Autumn statement.
‘Misguided and ill-thought-out reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) will not only lead to lasting damage to Welsh farming and the break-up of family farms, but will also leave farmers with neither the means, confidence nor the incentive to invest in the future of their business,’ says NFU Cymru. Read NFU Cymru's views here
UK Autumn Budget 2024
The UK Autumn Budget 2024 is announced.
NFU Cymru writes letter to Jo Stevens, Secretary of State for Wales
NFU Cymru writes a letter to Jo Stevens, Secretary of State for Wales ahead of the budget announcement.
NFU Cymru writes joint letter to Chancellor ahead of Budget
NFU Cymru along with the NFU, NFU Scotland and the Ulster Farmers’ Union writes a joint letter to the Chancellor of the Exchequer Rachel Reeves following recent speculation that Inheritance Tax Reliefs (IHT), including Agricultural Property Relief (APR) as well as Business Property Relief (BPR), are to be reviewed in the Budget. Read the letter here
NFU Cymru writes to MPs ahead of Autumn budget
NFU Cymru writes a letter to all 32 Welsh MPs ahead of the new government’s first budget, setting out its position on agricultural support funding and also making the case as to why there should not be any changes to Agricultural Property Relief. Read the letter here
Farming budget tops agenda as NFU Cymru meets Welsh Government heads
NFU Cymru meet with Eluned Morgan, First Minister of Wales, alongside Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies. Top of the agenda was funding for agriculture and progress on the development of the Sustainable Farming Scheme. Read more here
NFU Cymru writes letter to Chancellor ahead of Budget
NFU Cymru at the Conservative Party Conference
NFU Cymru joined the NFU at the Conservative Party Conference in Birmingham. NFU held a fringe panel event discussing the future agriculture budget.
NFU Cymru at the Labour Party Conference
NFU Cymru joined the NFU at the Labour Party Conference in Liverpool. NFU Cymru used this as an opportunity to push forward our key ask of Government; that is an agricultural budget that allows us to be able to meet our ambitions to be world leading in the production of climate friendly food against a backdrop where nature is thriving on our farms. Read more here
NFU Cymru meets with Defra Minister of State, Daniel Zeichner MP
NFU Cymru Deputy President Abi Reader was pleased to welcome Defra Minister of State for Food Security and Rural Affairs, Daniel Zeichner on to her farm. This visit gave the Minister an opportunity to look at some of the issues and challenges facing agriculture, specifically those non-devolved matters such as future UK Government funding for the sector and the UK’s national food security. Read more here
Budget top of the agenda at County Shows
Throughout July & August the budget was discussed at County Shows across Wales.
Budget top of the agenda at NFU Cymru General Election hustings
NFU Cymru members across Wales had the opportunity to quiz their parliamentary candidates at county General Election hustings.