FUW takes Inheritance Tax fight to the Senedd

Ahead of a Senedd debate on the UK Government's controversial changes to Agricultural Property Relief (APR) on Wednesday 5 March, the Farmers’ Union of Wales (FUW) were in the Senedd once again, lobbying Welsh politicians to press for the UK Government to review their far-reaching changes.

The debate, tabled by Plaid Cymru, called on the the Welsh Government to make representations to the UK Government that they reconsider and pause the family farm tax until such a time as they have conducted a thorough consultation and economic review of its impact on working farms

Despite support from the Welsh Conservatives and Welsh Liberal Democrats, the debate itself saw the Plaid Cymru motion narrowly voted down. 

An amended motion supported by the Welsh Government was passed, which recognised the concerns expressed by Welsh farmers about changes to APR, and that such Welsh Ministers would continue to advocate to the UK Government that the views of Welsh farmers be given full and proper consideration.

Ahead of the debate the FUW, the independent voice of Wales’ family farms, met with Welsh Conservatives rural affairs spokesperson, Peter Fox MS and Plaid Cymru’s Llyr Gruffydd MS, relaying the farming sectors’ concerns over the potential impact the Treasury’s reforms could have on family farms and domestic food production.

The Prime Minister had previously insisted a "vast majority" of farmers would not be affected by the changes, which are due to take effect from April 2026. Meanwhile UK Treasury’s figures have previously claimed it expects around 500 estates across the UK to be affected by the changes each year.

However, previous research by industry bodies has drawn significant doubts over the Treasury’s figures.

The FUW’s own analysis suggests as many as 48% of Basic Payment Scheme (BPS) recipients in Wales could be affected by the changes, with the union warning the changes could have devastating impact on family farms and food production, as well as leading towards an increase in agricultural land being transferred into the ownership of remote corporate bodies and companies.

The FUW has previously put forward a range of proposals to the proposed changes to better safeguard family farms and the UK’s food security. - a stance it reiterated to the UK Government on several occasions, including a meeting with UK Treasury officials in London in late February.

These proposed changes include the principle that farming/agricultural assets should not be taxed when passed from one generation to another for farming themselves or letting to another farming family. However, if a generation decides to sell those assets, those assets should be taxed at the point of selling.

Commenting following the debate, FUW President, Ian Rickman said: “Changes to APR have triggered significant anxiety within the farming sector in Wales during what is an incredibly difficult time for Welsh farmers, and the FUW has consistently called for the changes to be reviewed. 

"Considering the continued frustrations within the farming sector that were powerfully articulated during this debate, there was an opportunity here for the Senedd to send a clear message to Westminster that this ill-thought-out policy must be paused and reconsidered.

"Disappointingly, this opportunity fell short, however as pressure continues to mount from the sector and from the government's own back benches, the UK Treasury must now do the right thing and revisit these proposals to better safeguard our family farms and the future of Welsh agriculture.”

As well as opposition spokespersons, FUW President Ian Rickman and Deputy President, Dai Miles, also met Welsh Government’s Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies MS. The meeting provided an opportunity to discuss the far-reaching impact changes to APR could have on Welsh family farms, as well as discuss other pressing issues facing the sector, including the Sustainable Farming Scheme, the ongoing review of the Control of Agricultural Pollution regulations, bovine TB and the surveillance of Bluetounge Virus.

We have a voice - let's use it!

 

The following interview with Ann Davies MP marking International Women's Day, was conducted by Angharad Evans (FUW Welsh Language Communications Officer) - and originally appeared in the March 2025 edition of Y Tir.

Can you believe it's March already? An important month for a number of reasons - the weathermen refer to the first of March as the first day of spring - I really hope the weather will be more spring-like, particularly as many of us embark on lambing season.

By the time you read this, it will only be about three weeks until the clocks change and that means longer days and better and kinder weather - hopefully! But there is another special little day happening in March too - a whole day to celebrate us women!

International Women's Day is celebrated annually on the 8th of March, in different ways around the world in order to celebrate the achievements of women in the political, scientific, financial world etc. We can also add one more area to this list which is agriculture, and one woman from Carmarthenshire is an inspiration to us all in proving that it is possible to balance different responsibilities and make a difference.

Ann Davies is a wife, mother, grandmother, farmer, an active member of the Farmers’ Union of Wales, and a passionate Member of Parliament in Westminster since 2024 and has broken new ground for women in agriculture.

On the eve of International Women's Day, I had the opportunity to ask Ann about her personal experience of how to make a difference, here is Ann to explain more: 

"With International Women's Day being celebrated on the 8th of March, it is important to take a moment to reflect and appreciate the contribution of women to the agricultural industry and beyond," explains Ann. "As women, we often take on several roles at the same time, and as a mother, grandmother, farmer and Member of Parliament for Carmarthen, I know very well how important the ability to balance different responsibilities is.

“Being a woman in traditional industries such as agriculture and politics requires resilience and dedication, but it also offers invaluable opportunities to make a difference.

"From being a peripatetic music teacher to working in Westminster, my journey has been one of hard work and perseverance. As Chair of the Carmarthenshire County Branch of the FUW, I have seen women across our communities take their place in shaping the future of agriculture. We must ensure that the voices of women within the industry are heard and that they receive the resources to succeed - be it on the farm, in business, or in Parliament.

"The agricultural industry has attracted a lot of attention in the press recently, and there is no doubt that it is under pressure. With changes to inheritance taxe, rising costs and the need for greater sustainability, it is essential that the voice of every farmer - whether male or female - is heard. In Westminster, I continue to press for support for Welsh family farms, which act not only as the backbone of our rural communities but also as custodians of our language and culture.

“Despite the pressure, my roots keep me strong. Time on the farm with the family, Sunday lunch with the grandchildren, and milking on mornings when I'm not in London reminds me of who I am. Women across Wales are proving every day that they can balance work, family and public life. My message to any woman is: don't be afraid to take your place. We have a voice - let's use it."

Ann's story from close to the farm to Westminster is an interesting one, an inspiration and above all encourages women to venture into traditional fields and to make a difference.

Thank you Ann for your dedication, hard work and persistence, at home in Carmarthenshire and ensuring that there is solid representation for women in agriculture and that there is a passionate voice for Welsh farmers over in Westminster.

We look forward to seeing more women representing agriculture at all levels!

 

Welsh Government approves Bluetongue vaccines licence

The Welsh Government has confirmed it has approved the emergency use of three Bluetongue vaccines from 1 March this year to mitigate the impact on livestock.

The vaccines will be available on prescription and sold from veterinary practices and can be administered by livestock keepers themselves, following appropriate guidance.

This decision follows the continued spread of Bluetongue virus (BTV-3) cases in England since August 2024. On 4 September 2024, three unauthorised BTV-3 vaccines received Defra Secretary of State permission for emergency use in the UK.  The vaccines were licensed for use in England last year and Welsh Ministers’ decision to grant a licence means they can now be used in Wales.

Commenting following the decision, Chief Veterinary Officer for Wales, Dr Richard Irvine, said: “This decision to licence these vaccines was informed by our recent risk assessment indicating that Wales is now at high risk of experiencing an incursion of Bluetongue this year. Our primary aim is to keep Bluetongue out of Wales through biosecurity, vigilance and safe sourcing of livestock. 

"Wales remains free of BTV-3, but it is important to be prepared. Vaccines give Welsh farmers an important tool to reduce any impact of this disease in their herds and flocks. I would encourage farmers considering vaccination to consult their veterinary surgeon to discuss whether vaccination is appropriate for their livestock.”

The Farmers’ Union of Wales has previously called for these vaccines to be made available, and commenting after the decision, FUW Policy Officer, Elin Jenkins said: “With spring approaching and an anticipated increase in midge activity, Bluetongue continues to pose a significant threat to our industry. The FUW has previously advocated a vaccine rollout as a preparatory move ahead of any potential outbreak, and as such we welcome today's announcement.

"While this vaccine is not a silver bullet, it does have a key role to play in limiting the impact of BTV-3 on Welsh herds and flocks.

"We urge Welsh farmers to familiarise themselves with the Welsh Government's vaccination guidelines and continue to maintain vigilance as well as proactive measures to mitigate the impact and spread of this disease."

For more information about the vaccines visit the Welsh Government website via the link below:

https://www.gov.wales/welsh-government-approves-bluetongue-vaccines-licence-voluntary-use

Union’s inheritance tax concerns ‘fallen on deaf ears’

Farmers’ Union of Wales President, Ian Rickman, has expressed his disappointment following a meeting with the UK Treasury regarding changes to Agricultural Property Relief and Business Property Relief, announced during the Autumn Budget and due to take effect from April 2026.

In a meeting with the Treasury in London on Tuesday 18 February, Ian Rickman highlighted the significant questions and concerns regarding the far-reaching changes to inheritance tax, as well as the emotional toll the changes were having on Welsh farmers.

The meeting followed substantial lobbying by the FUW regarding the changes, including extensive correspondence to the Prime Minister, Treasury Minister James Murray MP and an evidence submission to the Welsh Affairs Committee.

The Prime Minister had previously insisted a "vast majority" of farmers will not be affected by the changes, with the Treasury previously claiming it expects around 500 estates across the UK to be affected by the changes each year.

Alongside other sector stakeholders and businesses, the FUW has however raised significant concerns over the reliability of these figures, with previous analysis by the FUW suggesting as many as 48% of Basic Payment Scheme (BPS) recipients in Wales may be impacted by the new Inheritance Tax proposals.

More recent analysis from the CAAV suggested 200 Welsh farming taxpayers will have an Inheritance Tax liability arising from the reduced benefit of APR and BPR each year - equating to over 6,000 affected Welsh farming taxpayers over a 30 year generation.

As well as questioning the Treasury’s figures, Ian Rickman also highlighted many of the proposals the FUW has put forward to amend the government’s changes to better safeguard family farms and the UK’s own food security.

These proposed changes include the principle that farming/agricultural assets should not be taxed when passed from one generation to another for farming themselves or letting to another farming family. However, if a generation decides to sell those assets, those assets should be taxed at the point of selling.

These pragmatic changes would help protect genuine family farms, as well as addressing any loopholes that currently exist within the APR and BPR legislation. The UK Government dismissed any suggestions, confirming an intent to continue with the changes as initially proposed.

Commenting following the meeting, FUW President, Ian Rickman said: “We are deeply disappointed by the Treasury's dismissive response to our compelling case against the detrimental impact of the Inheritance Tax changes for Welsh family farms.

"Together with other UK farming representatives, we clearly outlined the potential economic, emotional and cultural devastation these changes could inflict on farms and rural communities across Wales, and our domestic food production. Crucially, we offered our willingness to collaborate with the government and industry stakeholders to address the flaws in this ill-thought-out policy.

"Regrettably, it seems these arguments have fallen on deaf ears. Serious questions remain about the Treasury's own figures and given steep trajectories in land prices and the current and historically low farm profits for the farm types which predominate in Wales, such inheritance tax bills would be unaffordable for a significant proportion of family farms. We continue to hold grave concerns about these changes, and will liaise further with our membership regarding the best way forward.”

Call us to book your SAF 2025 appointment

It’s that time of year again when we start thinking about Single Application Forms (SAF). The application window opens on March 3rd until May 15th and the FUW is reminding its members that county staff are here to help and ready to take the stress of filling the form away.

The FUW provides this service as part of the membership package, which has proved invaluable for thousands of members over the years - saving them time and a paperwork-headache. 

FUW Special Policy Advisor Rebecca Voyle said: “The SAF completion process is probably the single most important form completion exercise being carried out by Welsh farmers since 2004, and the financial repercussions of errors on the forms are severe. Our staff are not only well trained but very well practised in dealing with the complex application process.”

Since the Welsh Government mandated that all applications should be done online, the FUW has focused on providing the best possible service to its members. 

“I encourage our members and first time form fillers to contact their local office as soon as possible to book an appointment if they need help in filling out the form,” added Rebecca Voyle.

“We’re not very happy with it” - First Minister repeats FUW concerns over future farm funding changes

Wales’ First Minister, Eluned Morgan MS has repeated concerns voiced by the Farmers’ Union of Wales (FUW) over changes to future funding support rules for Welsh agriculture.

Her comments came as she was questioned by Welsh MPs during a session of Westminster’s Welsh Affairs Committee on Wednesday 12 February 2025. 

As part of the session Henry Tufnell, Member of Parliament for Mid & South Pembrokeshire, questioned the First Minister on her thoughts regarding the UK Government’s decision to move towards a Barnett formula-based allocation of future agricultural funding for Wales, rather than a needs-based formula that has previously been the case.

Responding to Mr Tufnell’s question, the First Minister claimed the Welsh Government were “not very happy” with the announcement, noting that “it is a huge concern that that has been changed."

The First Minister said Wales has a higher proportion of farmers than other parts of the UK and the new funding formula ”will not recognise that" going forward.

Previously, EU funding for UK agriculture was allocated across the UK nations under the Common Agricultural Policy (CAP) formula, based on rural and farming criteria such as the size, number and nature of farms. This resulted in 9.4% of the total UK agriculture budget coming to Wales when we were members of the EU.

The UK Treasury’s decision in October 2024 will however see future proportional adjustments to the Welsh agricultural budget being subject to the Barnett Formula, resulting in a fall from 9% to 5% of any proportional uplifts (or reductions) the UK agriculture budget receives.

Responding to the First Minister’s comments, Ian Rickman, Farmers’ Union of Wales President said: “We welcome the First Minister’s comments, and her concern regarding the significant consequences Barnettisation could have on future farm funding here in Wales.

"The FUW has long warned this change in funding fails to recognise the unique characteristics and needs of Wales' farms - and the move towards a population based model could see both a fall in Welsh farming's future funding and greater divergence between how agriculture is funded across the devolved nations.

"At a time when Welsh farmers are expected to deliver an ever increasing range of sustainability and environmental objectives, while also producing food, there should be a return to the previous allocation formula which better served the needs of the sector here in Wales.”

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