Rebecca Phillips recounts the extraordinary life of her late husband, Clive, who was not only a beloved husband and father but also a dedicated farmer. Despite battling cancer for ten years with numerous operations, Clive continued working on their dairy farm near Haverfordwest, putting in 90 to 100 hours a week, right up until his passing 14-and-a-half years ago. His commitment and sacrifice to keep the farm running through his illness are a testament to the resilience of farmers, whom Becky describes as a special kind of people.
After Clive’s death, Becky took over the farm, ensuring their two sons could pursue their own paths. The farm has since expanded into a mixed 220-acre operation, including cattle, arable land, and various on-site enterprises. However, the family now faces uncertainty due to changes in inheritance tax rules announced by Chancellor Rachel Reeves in the recent Budget.
The alterations to Agricultural Property Relief (APR) and Business Property Relief (BPR) are set to limit relief from inheritance tax to the first £1 million of combined agricultural and business property from April 6, 2026. While the Treasury claims this will primarily affect larger estates, Becky and other farmers argue that it will significantly impact family farms. They fear that smaller farms like theirs, valued over £1 million due to necessary expansions, will struggle to meet the tax obligations upon inheritance.
Becky emphasises the financial challenges faced by farmers, noting that the perceived asset value of farms often masks the underlying debts and the vital role of diversification in sustaining the business. She criticises the government for overlooking the realities of farming and its essential contribution to food production. The lack of understanding and support from policymakers, compounded by previous crises like foot-and-mouth disease and BSE, has left farmers grappling with low prices, regulatory burdens, and now, impending inheritance tax burdens.
The prospect of inheriting a hefty tax bill threatens the future of family farms, pushing them into insurmountable debt and jeopardising generational succession. Becky stresses the need for policymakers to engage directly with farmers and acknowledge their challenges to ensure a sustainable agricultural sector. As the farming community awaits clarity on the implications of the new tax rules, the resilience and determination of individuals like Becky and her sons serve as a poignant reminder of the unwavering dedication of farmers across Wales.