The Farmers’ Union of Wales has expressed grave concerns following the announcement by the Chancellor of Exchequer in the Autumn Budget today (30.10.24) that Agricultural Property Relief (APR) will be reformed from 2026, leaving the future of many Welsh farms in the balance.

During the Budget, it was announced that the 100% rate tax relief will come to an end for businesses and land worth over £1 million in the agricultural sector from April 2026. The current 100% rate of relief will continue for combined agricultural and business under £1 million, but for assets over £1 million, inheritance tax will apply with 50% relief, at an effective rate of 20%.

This reform is likely to affect a majority of Welsh family farms,

Responding to the announcement, FUW President, Ian Rickman said:

“The FUW has previously warned that changes to the agricultural property relief would have an impact on the viability of family farms and our rural communities - as well as adverse consequential effects for related businesses and employment.

“We know the average size of farm holdings in Wales is around 120 acres - with even conservative estimates of land worth and buildings putting most farms at over £1 million in asset value. 

“Agricultural Property Relief has long played an essential role to ensure those who inherit agricultural holdings are not crippled by taxes when family farms are passed from one generation to the next.

“We await further details regarding APR and what the announcement today means for Welsh Government budgets, but at a challenging period for farming in Wales, this news will add further uncertainty to farm businesses doing their utmost to produce food and enhance the environment.”

Members concerned about this issue should contact their local FUW county office for advice from our partner agent RDP Law.

By Glyn Roberts, former FUW President

On reflection, I can’t recall the first time I met Lorraine. A person of great character and warmth but I do remember her on the FUW’s Finance & Organisation (F&O) committee, of which she was elected some time before me. Lorraine and Terry Bayliss used to travel up to Aberystwyth together, I learned very quickly that if I wanted to convince these two I needed to carry out my homework first, as both were of strong characters. I probably disagreed more with Lorraine on some things than any other member of the F&O, but any disagreement ended at the door on the way out.

A few years ago, Eleri, myself and our daughters went to visit Lorraine at Cwm Carno. She made us feel at home straight away. We could see she was a hard working, independent woman with a heart of gold. She was sure of her beliefs and would undoubtedly stand up for herself in a male dominated agricultural world. Sometimes, people would take her the wrong way due to her abruptness, as I learned. You had to take Lorraine as she was! She was an inspiration to my daughters - a strong willed woman. Lorraine and Beca used to discuss farming issues and always teased one another - she had a great sense of humour. I can hear her now saying “Don’t you listen to your father! You do whatever you want! You show him how to farm!”

Last August was the last time Eleri and I visited Lorraine. Unfortunately, I could see a deterioration in her health but her mind was as sharp as ever! Soon the conversation revolved around FUW matters and back to the good old days of the F&O. I remember telling her that we disagreed on many things, her answer was that the important thing was that we had a mutual respect, we did what was best for the Union and the industry, and we did nothing for our own benefit. Fair play to Lorraine she lived by these principles.

Another of her principles was her determination to give Lee Pritchard an opportunity to develop within agriculture as he was not from a farming background. On that day we last saw her, we saw others who had been important to her - she emphasised her respect for the FUW’s current President Ian Rickman as well as past Presidents Gareth Vaughan and Emyr Jones. She was also very complimentary of the FUW’s County Executive Officer in Glamorgan and Gwent, Sharon Pritchard and past County Executive Officer, Glyn Davies.

The picture of Lorraine shows us exactly who Lorraine was - it shows the passion Lorraine had not only for agriculture but also for the FUW with her cap and the Welsh Black jumper, that’s how I will definitely remember her.

Lorraine used to be a teacher, but her true career was farming and her heart was in the rural community. She was from the Valleys, with a strong Valleys accent and was proud to carry the Valleys values running through her veins! She used to tell me that she was one of the “WERIN”, not one of the “crachach!”

Although her health was not at its best in the last few years, she coped well in a positive manner. She still visited the Royal Welsh Show and adapted herself to the environment by using the buggy.

She, like everyone else, did have some disappointments in life, I’ll never forget the way she opened her heart to me on one occasion. She said that she was not as hard as some people thought she was. I remember seeing a poster with a picture of a kiwi fruit stating it was hard on the outside and rough on the edges but soft in the middle, this was Lorraine in a nutshell. 

I remember travelling from Anglesey Show with Lorraine and Beca when Lee phoned. From my one-sided conversation, I understood that Lee wanted a new machine and Lorraine sounded quite adamant and stern that she could not justify the investment. After concluding the conversation, Lorraine turned to me and said Lee would have the machine as he was such a good boy, “I’m so lucky to have him.”

Lee was like a son to Lorraine, they were such a good team. There was mutual respect and friendship between both, I’m adamant Lorraine’s legacy will live on through Lee, and pob lwc to Lee and the family.

Cwsg a gwyn dy fyd Lorraine fach. 

Llyfr o atgofion a hiraeth - ni all neb ei gau. 
A book full of memories and loss - no one can never close.

Dairy farmer, Stephen James, from Gelliolau farm in Clunderwen, Pemborkeshire has been presented the FUW Outstanding Service to the Welsh Dairy Industry award at the Welsh Dairy Show 2024 in Carmarthen.

Presenting Stephen with the award will be FUW President Ian Rickman during the Welsh Dairy Show held at the United Counties Showground in Nantyci, Carmarthen on Tuesday 22 October 2024.

Ian Rickman, FUW President said: “The judging panel were delighted with the nominations this year, but Stephen’s diligent and relentless work for over 20 years representing the industry in a public role on the issue of Bovine TB in particular placed him on top. 

“A worthy winner, Stephen has used his own experience of dealing with TB on his own farm business, having been in and out of restrictions for over a quarter of a century, to highlight the main issues that affect Welsh farmers, publicly.”

Stephen is Chairman of the Wales Animal Health and Welfare Framework a position he has held since July 2018. As Chairman, working closely with Wales’ Chief Veterinary Officer, Stephen works to make improvements in standards of animal health and welfare across Wales. 

He has also been a leading figure in representing the concerns of Welsh farming to the Government. As an industry representative on the Welsh Government TB programme board, he has undertaken countless bilingual media interviews to local, national and international broadcasters. He highlights the impact the disease has on farming families and the need for the Welsh Government to  implement a Comprehensive TB Eradication Strategy.

On winning the award, Stephen James said: “Receiving this award is a huge privilege. It was quite a shock to hear the news. I am extremely grateful to receive the award, especially at an event that is so close to my heart and is so important to the milk sector in Wales. Thank you so much for the honour.” 

Stephen James has held a wide range of positions within NFU Cymru from Local Branch Chairman to President (2014 - 2018). He has worked on a number of significant policy areas including the Common Agricultural Policy Reform and Brexit, dairy issues and an influential figure during the trying times of the 2012 milk crisis. Stephen, alongside other UK farming union leaders, addressed the July 2012 dairy farmers Westminster Hall Rally.

Passionate about supporting the next generation of farmers, Stephen shared the responsibility for his farm business at Gelliolau to his son, Daniel, at a young age. He has been heavily involved with the Wales Young Farmers, both locally and nationally holding a number of positions including Pembrokeshire County Chairman, Pembrokeshire County President and Wales YFC Council member.

A long standing member of First Milk and a Director and past Chairman of Clynderwen and Cardiganshire Farmers, he truly believes in the values and principles of co-operative organisations. 

He is former President of the Pembrokeshire Agricultural Society, a President and active Board Member of Clunderwen Show Society, a past Chair of Clunderwen Community Council and member and past Chairman of Narberth Grassland Society. Stephen James is also a Fellow of the Royal Agricultural Societies.

Ian Rickman concluded: “Stephen James has truly made an outstanding contribution to the Welsh Dairy Industry. We are delighted to present him with this FUW award in recognition of the years of work he has carried out on behalf of Welsh farmers. On behalf of the FUW, I congratulate and thank Stephen for his work.”

FUW milk committee chair, Brian Walters, will open his farmgate on the eve of the Welsh Dairy Show 2024 next week, to highlight the importance of family run dairy farms’ in Wales .

Farming 500 acres in Carmarthen with wife Ann and two sons, Aled and Seimon; the family run a dairy herd of 220 cows with 200 followers on an autumn block calving system with the emphasis of producing quality milk off grass. 

Working as a team, the family employ one full time staff member and manage the majority of the machinery work themselves on the farm. This keeps costs down and offers them the flexibility to manage tasks like harvest, ploughing and slurry when it suits them, rather than balance contractors availability and weather.

Brian Walters, Milk and Dairy Produce Committee Chair said ahead of the visit: “As a family we seem to have struck the right balance, for us. There are many challenges facing family farms like ours and economies of scale increasingly disfavours the smaller setup both financially and practically, especially when finding those ‘marginal margins’ are ever more important to achieving financial stability.

“For generations, farmers have safeguarded these dairy farms across Wales and have passed the traditional family farms from one generation to the next. The history of our most familiar food is clear to see with hundreds of milk stands standing guard over farm lanes and entrances across the countryside.”

Being a keen advocate of transferring skills to the next generation, Brian and the family have offered student placement to nearly 20 agricultural youngsters from Coleg Gelli Aur Agricultural College. 

“Ensuring the next generation is given the best opportunity possible to work within this fantastic dairy sector is fundamentally important to me. It’s not only a farm business, it is a way of life.

“Over the years the industry has not been shy in progressing and enhancing farm practices to improve the herd to maximise milk production, to boost efficiency and the welfare of these much respected animals.”

The Agriculture and Horticulture Development Board (AHDB) survey into producer numbers in April 2024 reports a 6% decrease in dairy producers compared with the previous year. Yet, the volume of milk produced per farm continued to increase. As an industry we are evolving to having fewer but larger milk producers. What are the implications of this trend on our family farms in Wales? 

Dai Miles, FUW Deputy President said: “As a Union, we continue to remind the Welsh Government and others that our traditional family dairy farms need support to future proof their businesses and infrastructure with affordable and innovative solutions to overcome the plethora of challenges facing the industry and be an attractive career for the next generation. 

“These family farms are the backbone of not only other small businesses but the glue that holds the community, schools, chapels, village halls, shops and local pubs together. These farms are also places where the traditional skills of farming are passed on and where Welsh language, culture and rural skills are safeguarded.

“One huge achievement the FUW played a fundamental role in successfully lobbying for in recent years is the new legislation to safeguard milk producers.

“The Fair Dealing Obligations (Milk) Regulations 2024 was introduced this July with a one year period of transition for existing milk contracts to become compliant with the new rules. This is certainly a positive step forward for the sector that will help stamp out unfair contractual agreements.”

Following the farm visit, at the annual Eve of Dairy Show dinner hosted by FUW and FUW Insurance Services Ltd, Shelagh Hancock First Milk CEO will address some of the key topics facing industry and giving us an insight to her optimism towards the future, not only for First Milk and its members, but for the sector as a whole.

The Welsh Dairy Show, held at the United Counties Showground in Nantyci, Carmarthen on Tuesday 22 of October gives the sector the opportunity to bring farmers, processors, co-operatives, businesses, sector leaders, unions and Government together to discuss the state of the dairy industry, look back on the year and plan for the year ahead.