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Farming

Plaid Cymru demands pause to ‘destructive’ farm tax

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PLAID CYMRU urged the UK Government to pause and review planned changes to inheritance tax for farmers, warning the impact could be destructive in rural Wales.

Llŷr Gruffydd said the problem with the policy is it does not distinguish between millionaires buying land to avoid tax and family farms scraping a living from the land.

Raising concerns about far-reaching consequences, he told the Senedd: “Wales isn’t a nation of lavish-living millionaire farmers. Our family farms operate on tight margins and they’re cash poor; many live a hand-to-mouth existence and too many are in debt.”

Mr Gruffydd warned the changes, which will see 100% agricultural property relief to inheritance tax restricted to the first £1m from April, will force family farms to sell land.

The shadow rural affairs secretary said: “The policy is utterly counter-productive at a time, of course, when we need to be strengthening our food security – not undermining it.”

Recognising a need to crack down with multi-millionaires who buy up land for tax avoidance purposes, Mr Gruffydd warned working family farms are being caught in the cross-fire.

“This isn’t just bad news for farms,” he said. “It’s bad news for the wider food sector, for the wider rural economy and for jobs in the supply chain. It will reduce local economic activity … and, of course, it’ll further weaken the social fabric of our rural areas.”

Plaid Cymru MS Llyr Gruffydd
Plaid Cymru MS Llyr Gruffydd

Leading a debate on March 5, he pointed to proposals for an alternative “clawback” system which would levy inheritance tax if assets are sold by the beneficiary within seven years.

He explained clawback is used by other European countries to discourage buying farmland to minimise tax bills, adding that such a policy could raise 7% more for the UK Treasury.

“It feels very often like a sector under siege these days,” Mr Gruffydd said. “But this proposal on inheritance tax goes deeper … the one thing you cling onto is your ability to pass your farm on to the next generation, to give your children a livelihood.”

Peter Fox, the Conservatives’ shadow rural affairs secretary who is a retired farmer, backed calls to pause the “draconian” decision to remove agricultural property relief.

Conservative MS Peter Fox
Conservative MS Peter Fox

He said: “Let’s also be clear: average farm incomes are low, certainly nowhere near even half of what any of us get paid in this place.

“There’s no way the average farm can generate enough money to pay inheritance tax, even if spread over 10 years. The fact is farms would have to be broken up.”

His colleague Samuel Kurtz criticised the Welsh Government’s “delete-all” amendment to the motion which “rides roughshod over this Senedd in trying to gain a unified voice”.

Mr Kurtz, the son of a farmer, pointed out that Steve Reed, the UK rural affairs secretary, told farmers Labour had no plans to change inheritance tax rules before the election.

Welsh Lib Dem leader Jane Dodds said farmers and their families are frozen in fear as she accused the Labour UK Government of repeatedly picking on the little people.

Jane Dodds MS, leader of the Welsh Liberal Democrats
Jane Dodds MS, leader of the Welsh Liberal Democrats

“Families are genuinely worried about their futures,” she said. “Young people are concerned about whether they can carry on. This policy discriminates against the widowed, the widower, the terminally ill and older farmers.”

Pointing out that 43% of the sector speaks Welsh, Plaid Cymru’s Siân Gwenllian warned the change could have a disproportionate impact on the language.

Party leader Rhun ap Iorwerth, whose son is an agriculture student, warned the change will be a heavy blow to an industry already under so much pressure.

He said: “Welsh family farms need a Welsh Government that stands up for them and genuinely makes the case that this inheritance tax change should be delayed until its impact is honestly and carefully assessed.”

Huw Irranca-Davies, the deputy first minister, said the UK Government inherited a catastrophic financial situation, with a £20bn “blackhole”.

Mr Irranca-Davies, who is responsible for rural affairs in Wales, acknowledged significant concerns about the proposed changes to agricultural property relief which is not devolved.

Huw Irranca-Davies, Deputy First Minister and secretary for climate change and rural affairs
Huw Irranca-Davies, Deputy First Minister and secretary for climate change and rural affairs

He said: “Many farmers have met with me and shared their worries about passing on their farms to their children, reflecting a widespread anxiety amongst our rural areas.

“I have made and will continue to make strong representations to the UK Government about the need to understand and respond to the specific concerns of our Welsh farmers.”

Plaid Cymru’s motion was narrowly voted down, 26-25, before the Welsh Government’s amended version was agreed, 26-14 with 11 abstentions.

 

Farming

Imported meat bill hits £5bn as Co-op calls for stronger backing for UK farmers

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RISING IMPORTS RAISE FOOD SECURITY CONCERNS

THE CO-OP has called for stronger government support for British farmers after new figures showed the UK’s imported meat bill rose to more than £5bn last year.

HMRC data obtained by the retailer shows the value of meat imported into the UK increased by 15 per cent year-on-year, from £4.33bn in 2024 to £5.06bn in 2025.

The Co-op said the figures raised fresh concerns about the resilience of Britain’s food system at a time of climate change, global conflict and disruption to international supply chains.

Poultry was the most imported protein, worth almost £2bn in 2025. Poland and the Netherlands accounted for the largest share, while poultry imports from Thailand rose by almost 50 per cent compared with the previous year.

The retailer, which says it sells and uses 100 per cent British meat and poultry, said the UK’s growing reliance on overseas supply chains left shoppers and farmers more exposed to global shocks.

It is now backing proposals from the Co-operative Party calling for agricultural co-operatives to be scaled up and better supported as part of the Government’s long-term farming plans.

The policy paper argues that farmer-owned co-operatives can help producers share costs, reduce risk, invest collectively and secure stronger bargaining power in the food supply chain.

There are currently estimated to be more than 500 agricultural co-operatives in the UK, generating income of more than £9bn.

Paul Gerrard, Director of Public Affairs and Campaigns at Co-op, said: “The issue of supply chain resilience is upon us now and there is a clear and demonstrable benefit to the co-operative business model in agriculture.

“An expansion of agricultural co-operation is both an economic opportunity and a political imperative: it directly addresses the need for a more secure and sustainable food system, one less exposed to the volatility of global markets and the instability in a rapidly changing world.”

Joe Fortune, Leader of the Co-operative Party, said co-operation was “a form of strategic resilience” and called on Government to help grow the sector.

The party’s proposals include clearer government guidance for farmers, stronger representation for co-operatives in policy-making, improved access to finance, support for producer organisations, and greater use of public procurement to back British farming.

 

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Farming

Badger Trust urges next Welsh Government to keep non-lethal TB policy

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Charity says Wales should continue science-led approach as bovine TB cases fall

BADGER Trust has called on the next Welsh Government to maintain a science-led and non-lethal approach to tackling bovine tuberculosis.

The charity says Wales should continue to focus on cattle testing, farm biosecurity and support for farmers, rather than wildlife intervention.

According to Badger Trust, bovine TB cases in Wales had fallen by 13.6% by the end of 2025, without any wildlife culling. It said this compared with a 5% fall in England over the same period.

The charity said 5.3% of cattle herds in Wales were not officially TB-free at the end of 2025, down 0.4 percentage points on the previous year. It said 567 new herd incidents were recorded during the year, alongside a 27% reduction in early cattle slaughter.

Badger Trust said bovine TB remains a serious threat to cattle health, but argued that the best response is a cattle-focused policy, including more frequent and enhanced testing, improved farm hygiene, and non-slaughter options for cattle testing positive.

The charity said: “The premature culling of cattle due to a failed bovine TB test is outdated and unnecessary. Instead, strict segregation is an effective alternative.

“The main focus must be on eliminating the reservoir of bovine TB in the national herd in preparation for cattle vaccination.”

Badger Trust also argued that bovine TB can remain dormant in cattle and in the environment for long periods before being detected, which can lead to mistaken assumptions that infection has entered a closed herd from wildlife.

It said the disease can also be spread through contaminated vehicles, workwear, manure and slurry if proper biosecurity measures are not followed.

The charity added: “Focusing on badgers distracts from the real issue, as DNA testing shows that 94-95% of bovine TB infections are transmitted directly between cattle.

“The only effective way to combat bovine TB is to address it at its source: within the cattle population.”

Badger Trust is urging the next Welsh Government to “hold its nerve” and continue with a science-led, evidence-based, non-lethal policy.

Nigel Palmer, Chief Executive of Badger Trust, said the charity wanted Wales to continue “leading by example” in its approach to tackling the disease.

Badger Trust says it welcomes the end of intensive badger culling licences in England in 2026, but remains opposed to presenting badger vaccination as the main solution to bovine TB. It argues that improved cattle testing and stronger farm biosecurity offer a more effective and humane way forward.

The charity also warned that badgers face a separate threat from changes linked to the Planning and Infrastructure Bill, which it says could weaken protections for badger setts in development areas.

Badger Trust is the leading voice for badgers in England and Wales and works through a network of local badger groups. Its Badgers Belong Here campaign promotes badger protection and public education.

 

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Farming

FUW warns food security must be treated as national security

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Union says rising fuel and fertiliser costs are putting pressure on farmers and food supply chains

THE FARMERS’ Union of Wales has warned that food security must be treated as a UK-wide priority as global instability continues to drive up costs for farmers.

FUW President Ian Rickman and Deputy President Dai Miles met Defra Minister for Food Security and Rural Affairs Dame Angela Eagle MP in Westminster to discuss the impact of international events on farming, production costs and the resilience of food supplies.

They were also joined by Wales Office Minister Anna McMorrin MP.

The union said the ongoing conflict in the Middle East and Gulf region had added significant pressure to key agricultural inputs and energy costs.

According to the FUW, fertiliser prices, particularly urea and ammonium nitrate, have risen by between 20% and 30% since the escalation of the conflict.

The union is calling for greater transparency around fertiliser stocks and distribution across the UK.

Fuel costs have also risen sharply, with the FUW saying red diesel has effectively doubled in price in some cases. Wider agricultural fuel and energy costs are continuing to rise across the sector, placing further pressure on farm businesses already operating on tight margins.

The union warned that these cost increases are feeding through the entire food supply chain, affecting production, transport, processing and manufacturing, and are likely to contribute further to food price inflation.

The FUW repeated its call for a UK-wide legislative food security metric, which it says should be taken forward by the next Welsh Government in collaboration with the UK Government.

It said food security is a cross-UK issue, affecting all four nations because of the closely integrated nature of agri-food supply chains.

The union also pointed to recent government evidence, including Defra’s 2024 Food Security Report and its 2025 national security assessment on biodiversity loss and ecosystem collapse.

It said these highlighted long-term risks to food production, including climate change, nature decline, animal and plant disease, supply chain disruption and exposure to volatile global markets.

FUW President Ian Rickman said: “We welcomed the opportunity to meet Minister Eagle and Minister McMorrin, and highlight the continued impact of recent global instability on Welsh farmers.

“Food security is national security, and recent global instability has made that clearer than ever.

“Farmers are facing surging cost pressures, particularly from fertilisers and sharply rising fuel costs such as red diesel, which in some cases have doubled.

“These are forces far beyond their control, yet they directly threaten the resilience of our food system.

“We urgently need a coordinated UK-wide approach that recognises the strategic importance of domestic food production and reduces our exposure to volatile international markets.

“With that must come regular and meaningful engagement between Defra and agricultural stakeholders across the UK, including the FUW, particularly on policy areas that remain reserved to the UK Government.”

 

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