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.
