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Farming

Grazing licences change

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claCLA CYMRU warns that only landowners or tenants will be able to claim Basic Payment payments under the new payment scheme With the new Basic Payment Scheme (BPS) coming into effect from next month, (1 Jan 2015) land owners, managers and farmers need to check their agreements. “Under the new rules, only owner occupied land farmed in hand, land held under an Agricultural Holdings Act (AHA) agreement or a Farm Business Tenancies (FBT), will qualify for a BPS claim from 1 January 2015,” says Chartered surveyor for CLA Cymru Charles de Winton.

“The new rules do not allow a grazier who is taking a crop of grass currently covered by a Grazing Licence or Profit of Pasturage to make a claim for the new entitlements,” he says, adding that under these changes the Welsh Government has provided clarity on which party may qualify for payments from the new scheme. “Members with existing arrangements where graziers currently claim payment- known as the Single Payment Scheme (SPS)- by way of a licence or Profit of Pasturage agreement will no longer be able to do so.”

“From January 1 2015 graziers must have an FBT in order to claim,” says Mr de Winton, who explains that this will give the grazier tenancy status and exclusive occupation of the land which will supersede all existing grazing or profit of pasturage agreements,” he adds. But he warns that there may be Inheritance Tax implications on the landowner where reliance has been placed on grazing licences by the landowner. “Not all cases are the same so advice is strongly recommended if the landowner is in any doubt,” adds Mr de Winton. “We urge members to talk with their graziers/tenants about moving to an FBT as soon as possible to secure current payments which could be threatened.”

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Education

Pembrokeshire pupils banned from taking part in ‘wellies to school’ protest

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THE FORMER leader of Pembrokeshire County council is to ask the current administration why pupils in the county were not allowed to take part in the ‘wellies to school’ protest against changes to inheritance tax on agricultural property.

The wellies to school spectacle was part of a wider November 19 protest, led by the National Farmers’ Union (NFU), held in response to the UK Government’s budget.

At the Budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20 per cent, with a £3m threshold for couples passing on their farms.

This compares to a 40 per cent rate on other estates.

However, Pembrokeshire schools were not allowed to engage in the wellies to school message.

A spokesperson for Pembrokeshire County Council said at the time: “The Education Act 1996 clearly prohibits practitioners from promoting partisan political views, and therefore, our schools are not permitted to promote the farmers’ protest taking place in London today.”

Former council leader Cllr Jamie Adams is now asking why the decision was taken.

In a question submitted to the December meeting of Pembrokeshire County Council, Cllr Jamie Adams says: “The recent spectacle of children wearing wellies to school on November 19, served as a powerful message that rural communities are concerned about the long-term sustainability of agriculture following the Government’s alterations to Agricultural Inheritance Tax.

“This widespread industry underpins the economy, social fabric, community cohesion and in many parts the Welsh language here in Pembrokeshire as much as any rural county due to the high prevalence of family farms.

“It was therefore concerning to hear that Pembrokeshire Local Education Authority sought to prevent children from overtly demonstrating their support by this action deeming it as ‘political’.

“I would therefore like to ask the Leader [Cllr Jon Harvey] how this position was adopted and who actually made the decision?”

Cllr Adams’ question will be heard at the December 12 meeting. 

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Farming

Calls for Pembrokeshire to oppose farming inheritance tax change

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A CALL on Pembrokeshire County Council to oppose the Labour Government’s changes to inheritance tax affecting family farms is to be heard later this week.

At the Budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20 per cent, with a £3m threshold for couples passing on their farms.

This compares to a 40 per cent rate on other estates.

A Notice of Motion by Councillor Aled Thomas, ‘relating to Protecting British Family Farms and Preserving Rural Communities’ is to be heard at the December 12 meeting of Pembrokeshire County Council’s full council meeting.

Cllr Thomas, who stood as a Conservative candidate for Ceredigion-Preseli in the 2024 general election, asks that: “Pembrokeshire County Council notes its concern to the proposed changes to inheritance tax announced by the Labour Government in the recent Autumn budget, which would scrap Agricultural Property Relief (APR).

“APR has been instrumental in allowing British family farms to remain intact across generations, supporting food security, sustaining rural communities, and aiding environmental stewardship. This tax is estimated to impact over 70,000 family farms, leaving the average farming family with a tax bill of at least £240,000, which will force many to sell portions of their land or close entirely, paving the way for corporate ownership over family ownership.”

It calls on the council to resolve to “oppose the Labour Government’s changes to inheritance tax affecting family farms,” to “advocate for the exemption of family farms to preserve the UK’s food security, rural communities, environmental initiatives,” and to “commit to maintaining its county council farms portfolio, particularly to encourage younger and new generations of farmers into the industry”.

It finishes: “This council urges all councillors to stand with Britain’s family farms, to support our rural communities, and to protect the environment by formally rejecting this proposed ‘family farm tax’.”

Cllr Thomas’s notice of motion will be considered at the December 12 meeting.

Claims were recently made, and denied, that Mid and South Pembrokeshire MP Henry Tufnell may have had insider knowledge of changes to Agricultural Property Relief recently announced by the Chancellor, with inferences it led to his wealthy landowner parents shielding their estate.

A spokesman for the Mid and South Pembrokeshire Labour MP said: “As has been widely reported, it would seem that even Steve Reed, the Secretary of State for DEFRA, was not aware of the specific changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) before the Budget was announced.

“It would therefore be implausible to suggest that Henry – a backbench MP – would have this kind of knowledge prior to the Chancellor’s Budget announcements before they were made public.

“The actions taken by Henry’s parents were based on professional advice from qualified financial advisers, reflecting prudent and responsible management of their family affairs.

“This is something that every farmer in Pembrokeshire should consider in light of the Chancellor’s recent announcements, to ensure they are prepared for the evolving landscape of farming taxation.”

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Farming

Call for more responsible farming in Pembrokeshire to be heard

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A CALL for a special farming role to be established for one of Pembrokeshire County Council’s senior councillors is to be heard later this week.

In a question to council leader Cllr Jon Harvey, to be heard at the December 12 meeting of Pembrokeshire County Council’s full council meeting, Conservative group leader Cllr Di Clements will ask: “With the recent changes in the budget from the UK Labour Government on Inheritance Tax and Agricultural Property Relief, many Pembrokeshire farmers are feeling concerned for the future of their family farms, many in Pembrokeshire which have been in the same family for generations.

“I have always found it disappointing that in all the years I have been a councillor, and the major contribution farming has to this county’s economic, cultural and environmental well-being, there has never been a Cabinet Member’s title with rural affairs or farming, or agriculture within it.

“To show that this council recognises the importance of agriculture, and the hundreds of millions of pounds generated by farming, will the Leader consider including it in one of the titles of his Cabinet Members’ portfolio?”

Cllr Clements will also ask a second question of the council’s leader, who replaced Cllr David Simpson in the role back in May.

Pembroke St Mary North member Cllr Harvey beat fellow leadership hopeful Conservative group leader Di Clements by 30 votes to 27 to secure the role.

Cllr Clements will ask: “The leader has now had some time to settle into his new role. Could he outline his key priorities for the future and explain how he intends to ensure value for money for council taxpayers on the services it provides?”

Both questions will be heard that the December 12 meeting.

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