Column: The key importance of our family farms

If you find yourself in a hole, stop digging; advice several politicians should have heeded as temperatures remain high in the farming community following the proposed changes to the inheritance tax. From the First Minister’s unfortunate ‘calm down’ quip, to a former aide of Tony Blair suggesting family farms were 'an industry we could do without’. At a time of worry and frustration, such words do little but rub salt into the wound of an industry already in distress. 

The latter of these comments, and the suggestion that the Government should do battle with family farms in the way Margaret Thatcher did with striking miners, was particularly poignant for us here in Wales. We already know that small family farms are the backbone of Wales’ agricultural sector, with an average farm size of 120 acres - almost half that of a typical English farm (217 acres). The disproportionate prominence of these smaller, family farms, provide an unique feel for Wales’ farming sector and communities - playing a key role in local employment, and maintaining the social fabric of our rural areas, including the Welsh language. In many instances, these farms have been passed from parent to child for centuries, another reason why the Chancellor’s shake-up to inheritance procedures has caused so much hurt over recent weeks. 

Last weekend the Farmers’ Union of Wales welcomed the opportunity to highlight the key importance of the family farms at the Welsh Labour Conference in Llandudno. The conference provided an opportunity to directly discuss the changes to the inheritance tax reform with MP’s and MS’s, as well as meeting the Cabinet Secretary for Rural Affairs, Huw Irranca-Davies MS. Of course, it wasn’t just Labour politicians that assembled in the seaside town either, and we welcomed the opportunity to engage with the significant number of farmers that had congregated to voice their concerns. 

Whilst the changes to the inheritance tax continue to dominate the headlines at Westminster, much of the talk with Labour Senedd Members revolved around the revised Sustainable Farming Scheme (SFS). We expect a statement from the Cabinet Secretary on the proposals next week at the Winter Fair. Whilst the announcement of the revised scheme outline will merely mark the end of the beginning - it will provide an important insight into the expectations and support that will be put forward for farmers in Wales to produce quality, sustainable food alongside other environmental and public goods. The FUW looks forward to engaging with its members once these plans are announced. 

And in mentioning the Winter Fair, do remember to call by the FUW stand near the cattle ring this year. It does promise to be a brilliant event once again - highlighting the very best of rural Wales and showcasing the key importance of our family farms. 

Prominent north Wales business couple win prestigious farming award

The founders of a leading Welsh business were awarded with the Farmers’ Union of Wales (FUW) Lifetime Achievement Award at a special dinner held at The Kinmel, Abergele on Friday 8 November 2024. 

Gareth and Falmai Roberts, founders of the award-winning yoghourt business, Llaeth Y Llan, started their business from a converted calf shed at their farmhouse in Llannefydd, Denbighshire in 1985 - with the first trials of the product undertaken in the back of their airing cupboard!

Over the past three decades, the business has grown from strength to strength with a modern dairy designed and built in 1995 utilising a redundant farm granary and other outbuildings. By 2015, with the brand stocked throughout Wales in 4 major retailers and dozens of independent stores, the old dairy reached maximum capacity, and a larger production facility was designed and built on the Roberts’ farm.  This facility was officially opened in 2017 by Lesley Griffiths AM, then Welsh Government Cabinet Secretary for Environment and Rural Affairs.

The business combines traditional values with modern techniques, producing 14 different flavours, using Welsh milk from the local area.  The yoghourt is sold across Wales and England, with the business previously winning the Wales Food Producer of the Year award at the inaugural Wales Food and Drink Awards in 2022. 

The Farmers’ Union of Wales’ Lifetime Achievement award was presented to Gareth and Falmai Roberts by FUW President, Ian Rickman, with acclaimed Welsh operatic baritone, John Ieuan Jones, also present on the evening to provide entertainment.

Commenting, Ian Rickman, FUW President said:

“The FUW was absolutely unanimous that Gareth and Falmai’s hugely successful business should be acknowledged, and we were delighted to host this dinner to honour their achievements and present them with this award.

From producing their first yoghourt pot, to their current success as one of Wales’ most recognisable food producers, Llaeth Y Llan is an outstanding example of Welsh enterprise, with local farms and food production at the heart of their success.

I congratulate them on this well-deserved achievement, and have no doubt that their business will continue to grow from strength to strength.” 

Profits from the dinner, and the very successful auction, will be presented to the Apel Goffa Dai Jones Memorial Fund, which is administered by the Royal Welsh Agricultural Society. 

FUW calls for clarity on Welsh agriculture funding following Budget

As the dust continues to settle following the UK Government’s Budget, the Farmers’ Union of Wales (FUW) has sought clarity from the UK Government following concerns Wales’ agricultural funding could be drastically reduced.`

As part of her Budget, Chancellor, Rachel Reeves redefined agricultural funding for the devolved nations using the Barnett formula, rather than maintaining a separate, ring-faced allocation as has historically been the case.

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.

However, the FUW has warned the UK Treasury’s decision to ‘Barnettise’ the block grant for each devolved nation, a calculation based on population rather than farm and rural characteristics, could see Wales’ proportion of total UK agricultural funding fall drastically.

Writing to the Secretary of State for Wales, FUW President, Ian Rickman, has sought urgent clarity from the UK Government on the funding reform - citing a worse case scenario ‘Barnettisation’ of agricultural funding that could see Wales’ proportion of total UK agricultural funding fall from 9.4% to around 5% - equal to a cut of around 40% in funding.

The FUW has argued that despite an additional £1.7 billion being made available to Wales as a result of the Budget, this additional funding has been linked to investment into schools, housing, health and social care, and transport. If agricultural funding has been effectively 'Barnettaised' (5% of UK allocation rather than 9.4%) as a result of the Budget, there could be serious implications for Wales’ farmers and agricultural sector. 

The FUW’s concerns were cited in the House of Commons by Liz Saville Roberts MP and Ben Lake MP during a debate on Rural Affairs on Monday (11 November).

Commenting, Ian Rickman, FUW President said:

“While the Welsh Government will ultimately have the final word on the Welsh agriculture budget, Barnettisation, or any reduction in Wales’ agricultural funding by the Treasury will further undermine the industry - and fail to reflect inflation and the plethora of public goods farmers are increasingly expected to deliver.

We’ve already experienced the anger, frustration and fear within the agricultural sector following the UK Government’s lack of clarity regarding the changes to the Agricultural Property Relief (APR) and Inheritance Tax. This continued lack of clarity regarding the funding being made available to Wales and the devolved nations is a further concern for an industry already on its knees, and I do hope the UK Government will be able to provide urgent clarity on these matters."

Proposed National Park concerns highlighted to MP

Officials from Farmers’ Union of Wales (FUW) Montgomeryshire recently met with Montgomeryshire and Glyndŵr’s Member of Parliament, Steve Witherden MP to discuss concerns over a proposed National Park for north-east Wales, which could include a vast proportion of north Powys. 

Meeting at Pistyll Rhaeadr waterfall, near Llanrhaeadr-ym-Mochnant, FUW County Executive Officer, Emyr Wyn Davies and FUW County Chair, Wyn Williams, outlined and array of concerns to Mr Witherden regarding the proposed National Park development. These objections included additional bureaucracy and planning regulations, and crucially the growing concerns voiced locally over pressures the designation could have on local infrastructure and local communities.  

The move to create the National Park follows a previous Welsh Government commitment to designate a new National Park in Wales based on the existing Clwydian Range and Dee Valley Area of Outstanding Natural Beauty. If established, it would be the fourth National Park in Wales, and the first since 1957.

The proposals are currently undergoing their second round of consultation under Natural Resources Wales (NRW), with the proposed boundaries incorporating Lake Vyrnwy and the Tanat Valley, as well as towns and villages like Llanfyllin and Meifod, stretching as far north as Trelawnyd in Flintshire.

Whilst at Pistyll Rhaeadr waterfall, concerns over the existing over-tourism at the site were cited - with the summer months’ surge in visitor numbers often leading to significant traffic delays and blockages locally - having a detrimental impact on local residents and farmers. Fears were voiced that National Park Designation would likely cause a further influx of visitors, exacerbating the problem.

Speaking following the visit, Wyn Williams, FUW Montgomeryshire County Chair said:

“We were very grateful for the opportunity to meet Steve Witherden MP and relay the many concerns that have arisen locally regarding the proposed north-east Wales National Park designation - which could incorporate a huge proportion of Montgomeryshire.

Whilst we welcome visitors and recognise tourism’s key contribution to the local economy, it’s clear there’s very little appetite locally for this designation. 

In areas of Eryri and Bannau Brycheiniog we’ve already seen the detriment over-tourism can have on local communities – from additional bureaucracy and planning restrictions, increased strains on diminishing amenities and infrastructure, to surging house prices. Furthermore, such a huge expense at a time when so many other public services are threatened with cuts or closure is bewildering.”

Following the visit to the waterfall, a meeting was held between the FUW and Steve Witherden MP at the Wynnstay Arms, Llanrhaeadr-ym-Mochnant. This provided local farmers and organisations - including the Young Farmers’ Clubs - an opportunity to further discuss the National Park proposals, as well as wider concerns - including the proposed changes to inheritance tax outlined in the UK Government’s recent Budget.

Steve Witherden, Member of Parliament for Montgomeryshire & Glyndŵr added:

“I welcomed the opportunity to meet with FUW Montgomeryshire and hear first hand about the concerns and scepticism surrounding a National Park designation that would include north Montgomeryshire.

From planning, to parking to the wider context of pressures on public finances, the concerns are understandable, and I would encourage the public to both get in touch with me and voice any concerns or comments in Natural Resources Wales’ ongoing consultation, which closes on 16 December 2024.”

A further meeting was held at Llanrhaeadr-ym-Mochnant on the same evening, which saw over 200 members of the local community, local authority and businesses attend - with a vast majority opposed to the proposals for National Park designation.

Column: Impact of the budget on agriculture

“Protecting working people” - a line heralded time after time in the run-up to, and during last week’s long-awaited Budget statement. However, as the dust settles following Rachel Reeves’ announcement on Halloween-eve, for many hardworking Welsh farmers the consequences of the Budget are likely to unravel as more of a trick than a treat.

At the heart of such anxieties lies the significant reform of inheritance tax relief. “Ensuring that we continue to protect small family farms” was the Chancellor’s promise from the dispatch box - but in practice, such changes have sent shockwaves through our farming families.

Inheritance tax relief through the Agricultural Property Relief (APR) has long supported the very fabric of our rural communities - aiding and incentivising Welsh family farms to pass from generation to generation. This has ensured those who inherit agricultural holdings are not crippled by taxes - thus avoiding adverse effects on rural businesses and employment, and crucially, safeguarding our wider Welsh food production and food security.

Due to the key importance of APR, the FUW has long opposed reforms to its structure - a position that was also previously voiced in November 2023 by Labour’s Steve Reed, now Secretary of State at DEFRA, who less than a year ago ruled out scrapping inheritance tax relief for farmland.

However, despite these previous assurances, the Budget revealed that from April 2026 the 100% rate tax relief will cease for businesses and land worth over £1 million - with an inheritance tax introduced thereafter at an effective rate of 20%.

The Chancellor assured us that three quarters of farms would remain unaffected by the change, but the FUW shares the industry’s wider concerns that these reforms could very well undermine the viability of our family farms, rural communities and the wider need for food security.

Whilst a million pounds may appear to be a huge sum for those outside the industry, for many Welsh farmsteads, even a conservative estimate of the value of accumulated land and infrastructure could see the £1m threshold easily breached. Subsequently, for many farming families, asset rich but operating on slim financial margins, there may well be little choice but to break-up the family farm to meet such death duties.

The emotional, economic and societal consequences of this potential dissolution of Welsh family farms could be significant and will have a real consequence for our food production - impacting the price of food. To this end the FUW will continue to challenge this tax reform and lobby the UK Government for a degree of clarity on changes which appear confused and ill-thought through. 

As last week’s announcement inevitably draws farmers’ thoughts and focus towards succession planning and future-proofing, it is worth emphasising alternative avenues of estate planning are available - with guidance and support for farmers readily available from partners of the FUW.

However, in a year that has already seen mass unrest, uncertainty and declining morale within the farming sector, this latest intervention from Government is a further straw on the strained back of an industry already in turmoil.

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