Anger, fear, and upset have gripped farmers in Wales as they come to terms with the implications of a tax reform that they argue could spell the ‘death’ of Welsh family farming. The National Farmers’ Union Cymru’s annual conference, held just eight days after the Budget announcement by Rachel Reeves, has been a forum for farmers to express their frustration and dismay. The policy change in question relates to inheritance tax rules for farms, announced by Reeves in October, which will see farmers no longer receiving 100% relief on inheritance tax. Instead, starting from April 2026, they will have to pay a 20% tax on farms valued over £1 million.
The mood at the conference in Llandrindod Wells was one of palpable anger, with farmers questioning the rationale behind targeting their livelihoods in this way. Farmers expressed bewilderment at the Labour government’s decision to single out their industry, particularly after statements made by Keir Starmer at the NFU conference the previous year emphasising the unique nature of family farms. The changes to agricultural property relief, introduced in 1984 to lessen the inheritance tax burden on farmers passing on their land, are seen as particularly detrimental to Welsh farmers.
Kath Whitrow, a beef and sheep farmer in the Brecon Beacons, shared her concerns about the impact on future generations of farmers. She worries that the tax changes will saddle her son with insurmountable debt and make the farm unviable. Similar sentiments were echoed by other farmers such as Martin Griffiths from Borth and Aled Davies from the Aeron Valley, who both fear that the long-term sustainability of Welsh farms is at risk. The emotional connection that farmers have to their land and the legacies they hope to pass on to their children is under threat.
Abi Reader, a prominent figure in Welsh farming, highlighted the potential devastating effects of the tax changes, especially for medium-sized family farms. She outlined scenarios where families would be burdened with significant tax liabilities, leading to the potential dismantling of farms that have been in families for generations. The fear of losing the opportunity for future generations to continue farming weighs heavily on these farmers, who see themselves as custodians of the land.
The UK Government’s justification for the tax reform, citing the need to address a fiscal deficit and redistribute relief for a fairer system, has been met with scepticism by farmers who feel unfairly targeted. The lack of regional figures and precise information about the number of farms in Wales that will be impacted has added to the uncertainty and anxiety among farmers. Calls for politicians to engage with farmers directly and reconsider the implications of the tax changes have been made in light of the potential catastrophic consequences for Welsh agriculture.
The looming spectre of increased financial burden, decreased farm viability, and the disruption of intergenerational farm transfers has cast a shadow over the future of Welsh family farming. The concerns raised by farmers in Wales reflect a deep-seated apprehension about the survival of a way of life that is not just a livelihood but a heritage. As the farming community grapples with the ramifications of the tax reform, the resilience and determination to protect their land, traditions, and legacies shine through amidst the uncertainty and upheaval.