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Farming

Farming Connect roadshow to advise farmers on succession planning

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AS WELSH farming families consider the implications of the UK government’s plan to limit 100% agricultural and business relief for inheritance tax (IHT) to the first £1m of value, Farming Connect is launching a roadshow of events across Wales to help businesses consider different options for protecting their assets including succession planning.

The Autumn Budget on 30 October included significant proposed changes to IHT rules and these will impact many farm businesses. 

Demand for the advice available through Farming Connect is anticipated to be high as a result therefore it is holding 10 events where experts in farm IHT issues and succession planning will provide important guidance on the planned measures and advise on how farmers can mitigate the effects of the change.

They will include Dr Nerys Llewelyn Jones, of Agri Advisor, who says the changes further emphasise the importance of timely and effective succession planning.

For example, the seven-year rule still applies which means someone could transfer an asset at least seven years before their death, without having to pay IHT on that asset. These are referred to as Potentially Exempt Transfers (PETs)

“The changes could lead to more transfers between generations before death but reservation of benefits rules apply and therefore this must be considered carefully,’’ says Dr Llewelyn Jones.

“If these rules are broken, for example if the gift donor is still benefiting in some way from the estate, for example living in the farmhouse, it may be referred to as a “failed PET” and will then become subject to IHT.’’

She anticipates heavier scrutiny on valuations and a greater need to have assets valued. 

Until now, farmers will have been advised to essentially “keep farming” for as long as possible to qualify for Agricultural Property Relief (APR). 

“This will apply possibly to assets that they are seeking APR and Business Property Relief (BPR) on, including those assets within the £1m cap’’ says Dr Llewelyn Jones.

However, there will be changes to the legal advice previously given as a result of the Budget and she strongly advises farmers to seek professional advice and put a plan in place.  

“For some, small changes will enable them to maximise the new IHT regime and the reliefs available but for others significant planning and consideration will be required with some difficult decisions to be made,’’ says Dr Llewelyn Jones.

Solicitors, accountants and land agents will be on hand to answer questions.

A comprehensive package of support is available through Farming Connect including facilitated family succession meetings; a succession review to assess the tax position and subsidised business and legal advice. For more information contact your local Development Officer, or call the Service Centre.

The schedule of events is as follows:

20/01/25 – Ivy Bush Royal Hotel, Carmarthen SA31 1LG

21/01/25 – Monmouthshire Livestock Centre, Raglan, NP15 2B

22/01/25 – County Showground, Withybush, Haverfordwest, Pembrokeshire, SA62 4BW

27/01/25 – The Barn, Moody Cow, Bargoed Farm, Llwyncelyn, Aberaeron, SA46 0HL

28/01/25 – Maesteg Golf Club, Maesteg, CF34 9PR

03/02/25 – Coleg Cambria – Llysfasi, Llysfasi, Ruthin LL15 2LB

03/02/25 – Celtic Royal Hotel, Caernarfon, LL55 1AY

05/02/25 – The Elephant & Castle Hotel, Newtown, SY16 2BQ

10/02/25 – Hafod a Hendre, Royal Welsh Showground, Builth Wells, LD2 3SY

11/02/25 – Rhyd-y-main Hall, Dolgellau, Gwynedd, LL40 2AS

For further details visit https://businesswales.gov.wales/farmingconnect/whats-on

 

Farming

Check ewes at weaning to protect next season’s lamb crop

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PEMBROKESHIRE sheep farmers are being urged to use weaning as a key opportunity to check ewe condition and deal with any problems before tupping.

With many local flocks now moving towards weaning, farmers are being advised to assess body condition score, as well as checking teeth, feet and udders, while there is still time to improve nutrition ahead of the breeding season.

Dr Alison Bond, Technical Services Manager at Rumenco, said close monitoring at this stage can help avoid major changes in ewe condition and improve overall flock productivity.

She said weaning at around 12 weeks was a good target, when lambs should usually be between 25kg and 30kg and taking very little milk from the ewe.

“There will of course be a focus on the lambs’ readiness for market at this stage, but it is equally important to put a hand across the ewes to assess their condition,” she said.

For lowland flocks, ewes with a body condition score below 2.5 at weaning should be given priority, as they may struggle to reach the target score of around 3.5 by tupping.

Those poorer condition ewes should be grouped separately, moved onto the best available grazing and given appropriate supplementary feeding where needed.

Dr Bond said waiting until closer to tupping could be less effective and may affect performance.

She added that ewes in good condition at tupping are more likely to scan with more lambs, produce healthier lambs after birth, and rear heavier lambs by eight weeks of age.

“It affects the whole production cycle, and not just one element,” she said.

The advice will be particularly relevant to farms across Pembrokeshire, Carmarthenshire and Ceredigion, where sheep remain a major part of the rural economy and where grass quality can vary sharply depending on weather, soil type and stocking pressure.

Dr Bond said the aim should be to keep ewes between body condition score 2.5 and 3.5 throughout the cycle, avoiding big dips and peaks.

Routine checks at weaning, she said, give farmers the best chance of correcting problems before the tups go in two to three months later.

Pic: Farmers are being urged to check ewe condition at weaning to protect flock performance ahead of tupping (Pic: Tim Scrivener/Agriphoto).

 

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Farming

Reform calls for urgent review of farming scheme

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LOW UPTAKE HAS RAISED FRESH QUESTIONS OVER THE FUTURE OF SUPPORT FOR WELSH FARMERS

REFORM WALES has called for an urgent review of the Sustainable Farming Scheme after figures showed only around half of eligible farmers have signed up.

The party said the lower-than-expected uptake showed that serious concerns remained within the farming community over the complexity of the scheme, compliance rules and uncertainty about how it will operate in the long term.

Laura Anne Jones MS, Reform Wales’ Shadow Cabinet Minister for Food, Farming and Rural Affairs, raised the issue during questions to the Welsh Government.

She said: “The figures released by the Welsh Government today confirm what many farmers have been saying for some time: the Sustainable Farming Scheme is too complex, too restrictive and too bureaucratic.

“Farmers need certainty and security, not endless paperwork and rigid requirements that fail to reflect the realities of farming in Wales.

“Reform Wales believes the scheme should be reviewed as a matter of urgency, with a greater focus on flexibility, common sense and practical outcomes.

“Welsh farmers deserve a scheme that works with them, not against them.”

The Sustainable Farming Scheme is due to replace previous systems of agricultural support in Wales and has been one of the most contentious issues facing the rural sector.

Farming unions and campaigners have repeatedly warned that any new system must be practical for family farms and must not add unnecessary red tape at a time when many businesses are already under pressure from rising costs, bovine TB and market uncertainty.

Reform Wales said the Welsh Government must now explain how it intends to respond to the level of take-up and whether changes will be made before the scheme is fully rolled out.

 

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Business

Holiday accommodation conversion of historic farm buildings approved

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PLANS to convert historic farm buildings near north Pembrokeshire’s Whitesands beach for use as holiday accommodation have been given the go-ahead, but their use doesn’t have to be restricted to just that purpose.

In an application to Pembrokeshire Coast National Park, Matthew James of James Properties, through agent Harries Planning Design Management sought permission for the conversion of two derelict barns to two self-catering holiday accommodation units at Porthmawr Ganol, Whitesands, St Davids.

An officer report said: “The farmstead occupies a prominent position within a landscape characterised by open agricultural fields enclosed predominantly by traditional dry-stone walls, exposed coastal pasture and areas of heathland associated with Carn Llidi.”

It added: “The site lies within the Porthmawr Historic Landscape Character Area, an area recognised for its historic pattern of dispersed settlement, traditional farmsteads, dry-stone wall field boundaries and evidence of medieval and post-medieval agricultural activity.

“The retention and reuse of the existing buildings therefore has the potential to preserve an important element of the area’s historic landscape character whilst securing a viable long-term future for structures that would otherwise continue to deteriorate.”

It said that insufficient evidence had initially been submitted to demonstrate that the buildings were unsuitable for permanent residential conversion and only for self-catering accommodation and therefore an affordable housing contribution should be secured.

Policy would lead to a contribution of £36,400, the report said, but a financial viability assessment by the applicant “demonstrated that the development would not be viable if required to provide the full policy contribution,” the maximum contribution capable of being supported whilst maintaining viability was £12,641.

This reduced figure was accepted, the officer report saying: “Whilst this represents a reduced contribution when compared with the full policy requirement, the submitted viability evidence demonstrates that the development could not reasonably support the full contribution whilst remaining deliverable.

“In these circumstances, securing a reduced contribution is considered preferable to losing the opportunity to secure the restoration and beneficial reuse of the historic buildings.”

It stated that, with the affordable contribution, the scheme would not be limited to self-catering development only.

The application was conditionally approved by Park planners.

 

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