Farming

Farming inheritance tax changes spark calls for delay amid Welsh concerns

Published

3 months ago

November 13, 2025

Committee warns of “confusion” as Government urged to review impact on Wales

PLANS to overhaul inheritance tax rules for agricultural estates have prompted a warning from MPs that Welsh family farms could face significant uncertainty unless ministers pause the reforms and assess their impact properly.

The cross-party Welsh Affairs Committee says the measures, due to take effect in April 2026, risk hitting small and medium-sized family farms far harder than the UK Government has suggested. Members argue that the changes have been developed without considering the distinct structure of Welsh farming, where many holdings are family-run, multi-generational and reliant on diversified income streams.

Under the proposals announced in last year’s Labour Budget, inherited agricultural assets valued above £1m would be taxed at 20%. While Treasury officials insist that only the largest estates will be affected, farming unions and rural accountants have produced far higher estimates. Some advisers say the reforms could touch the majority of Welsh farms, particularly where investment in tourism, renewables or on-site businesses has increased overall estate values.

The committee’s report highlights that no Welsh-specific data was published when the policy was announced, leaving what it describes as “a vacuum” filled by wildly different projections. MPs say this lack of clarity has fuelled anxiety across the sector, especially among families preparing for succession in the coming years.

Farmers who have expanded into caravan parks, holiday accommodation or wedding venues warn that diversification — encouraged for decades as a way of shoring up rural income — now risks pushing them over the proposed allowance. Several have told the committee that younger family members hoping to take over holdings are now unsure how to plan, with some reconsidering investment or delaying major decisions until the tax position is clearer.

The committee has urged the UK Government to halt the reforms until a full, Wales-specific impact assessment can be produced, scrutinised and debated. Members argue that any future policy must recognise that Welsh farms are typically smaller, more marginal and more culturally significant than the UK average, often forming the backbone of Welsh-speaking communities.

They also recommend that the Wales Office should take a leading role in assessing how UK-wide tax policies affect devolved nations, to avoid repeating what they describe as a “complacent” approach in this case.

Opposition parties in Wales have echoed the committee’s call for a pause, arguing that the reforms could destabilise rural communities and introducing that level of financial pressure without detailed analysis risks unintended harm. They say there are alternative ways to tighten tax rules for large estates or corporate landowners without imposing heavy costs on working family farms.

The Welsh Government said it welcomed the committee’s work and would consider its findings. The Treasury maintains that it is supporting British agriculture through investment allowances for machinery, funding for sustainable food production and measures designed to reduce EU export costs. Ministers say the reforms will ensure reliefs worth hundreds of millions of pounds are more fairly distributed and contribute to public services.

The next UK Budget is due within a fortnight, and farming organisations will be watching closely for any sign that ministers intend to slow down or revise the proposed changes.

Farming

New rules to make Welsh lamb pricing clearer set to begin next week

Published

6 days ago

January 22, 2026

Tom Sinclair

Mandatory carcass grading and price reporting will be required in slaughterhouses from Wednesday, January 28

WELSH sheep farmers are set to see new rules introduced next week aimed at making the lamb market fairer and more transparent.

From Wednesday (Jan 28), slaughterhouses in Wales will be required to classify sheep carcasses and report prices using a standardised system. The Welsh Government says the move will improve consistency in grading, make price information easier to compare, and help build confidence for farmers selling stock.

Deputy First Minister Huw Irranca-Davies announced the change during the Farmers’ Union of Wales (FUW) Farmhouse Breakfast event at the Norwegian Church in Cardiff.

He said the measures would support the industry by ensuring a consistent methodology for classifying carcasses in slaughterhouses, promoting transparency, fairness and productivity within the sheep market.

“Our iconic Welsh lamb is celebrated around the world for its outstanding quality and high production standards,” he said. “These measures will implement a consistent methodology for classifying sheep carcasses in slaughterhouses, promoting transparency, fairness, and increased productivity within the sheep market.”

The regulations bring the sheep sector into line with rules already used for beef and pork.

Hybu Cig Cymru – Meat Promotion Wales chief executive José Peralta said the changes would allow for greater data capture and analysis and improve transparency within the supply chain.

He said: “The new regulations, which now align with a similar position for cattle and pigs, will allow for greater data capture and analysis to be undertaken and support increased transparency within the sector. As a sector we must seek all opportunities for greater transparency within the supply chain to ensure that choices can be made from an informed position.”

The Welsh Government says the new approach is part of a wider UK framework, with similar arrangements already operating elsewhere.

During his address, the Deputy First Minister also pointed to further changes expected in 2026, including the planned introduction of the Sustainable Farming Scheme, which the Welsh Government describes as a new partnership between the people of Wales and farmers.

The scheme is intended to support the sustainable production of food while also responding to the climate and nature emergency.

The Welsh Government has also confirmed its commitment to financial support during the transition, with up to £238 million committed to the Universal layer and the legacy Basic Payment Scheme in 2026.

Deputy First Minister Huw Irranca-Davies said: “I would like to reiterate the Welsh Government’s commitment to supporting Welsh family farms, not just in the short term but also in the long run. Our goal is to prioritise stability for the farming industry, ensuring to balance this with sustainability at its very core.”

He added that supporting farmers through the change would be a priority, with consistent advice and support offered across the sector.

Building fairness within the agricultural supply chain remains a key Welsh Government priority, which it says is also integral to food security.

Farming

Natural Resources Wales urges farmers to follow safe slurry spreading rules

Published

2 weeks ago

January 17, 2026

Tom Sinclair

NRW is reminding farmers across Wales to take key steps to prevent pollution as the organic manure spreading season re-opens.

During the autumn and winter “closed periods”, restrictions were in place to stop slurry and other high-nitrogen manures being spread, helping reduce the risk of agricultural pollution.

Grassland spreading can resume from Thursday (Jan 16), with spreading on tillage land re-opening on Friday (Jan 31). However, NRW said a number of controls under the Control of Agricultural Pollution Regulations (CoAPR) will remain in force until the end of February.

Those restrictions include limits on application rates — no more than 30m³ of slurry per hectare, or eight tonnes of poultry manure, in a single application — with at least three weeks required between applications.

Before spreading organic manure, producers must also carry out field inspections to assess weather and soil conditions, slope, ground cover and proximity to watercourses, to help reduce the risk of runoff.

Farm businesses are expected to plan and record all applications in their Nitrogen Management Plan to ensure nutrients match soil and crop need and remain within nitrogen limits.

Spreading is prohibited on waterlogged, flooded, snow-covered or frozen ground — including soil that has been frozen for more than 12 hours in the previous 24 hours.

NRW said its teams will continue to support farmers while monitoring compliance.

Simon Griffiths, team leader of NRW’s Agricultural Pollution Inspection Team, said: “As the closed periods come to an end, we want to remind farmers, tenants, landlords and contractors of the restrictions which remain in place until the end of February.

“This means anyone considering spreading organic manure needs to ensure the conditions are suitable before work starts.

“NRW is committed to protecting the environment and any instances of pollution will be investigated and appropriate enforcement action taken.”

NRW is urging farmers and members of the public to report pollution incidents immediately via its online “report it” form or by calling 0300 065 3000.

Business

Redevelopment scheme at Castle Villa farm to be considered

Published

2 weeks ago

January 16, 2026

Bruce Sinclair - Local Democracy Reporter

A PREVIOUSLY refused call for the relocation of a Pembrokeshire farm diversification scheme which packages and distributes specialist medical equipment across Europe will be decided by full council after being backed a second time by councillors.

In an application recommended for refusal at the January meeting of Pembrokeshire County council’s planning committee, Mr Van Der Spoel sought permission for the relocation and expansion of an existing farm diversification business into an existing agricultural building at Castle Villa, Hayscastle.

It had previously been recommended for refusal at the December meeting, but members went against the officer recommendation with a ‘minded to’ approval, meaning it returned to the January meeting after a ‘cooling off’ period.

Back in July a similar application by Mr Van Der Spoel, through agent Harries Planning Design Management, was refused by planning officers.

A supporting statement for that application said the Dutch-born applicant, together with his wife and adult daughter ran the farm diversification business packing specialist medical insulated insulin supplies at their 135-acre sheep farm.

It added: “The business run from this site is FRIO ASTRID EURO Ltd, which has a franchise agreement with FRIO UK. This business has been run from Castle Villa since its incorporation in 1998. The business was initially run from the stable building on the farmyard at Castle Villa.

“The business set-up involves receiving stock from FRIO UK in Wolfscastle, packaging orders and distributing the stock to seven Western Europe countries.”

Wolfscastle-based FRIO produces the world’s first patented insulin cooling wallet which keeps insulin and other temperature-sensitive medicines cool and safe.

The scheme for the business, said to have outgrown its current site, was refused by county planners on grounds including a lack of “robust evidence” to prove it couldn’t be sited within a nearby settlement or an allocated employment site, such as Haverfordwest.

The latest application is recommended for refusal on similar grounds.

At the December meeting, members heard from agent Wyn Harries his client’s business, selling into Holland, Belgium, Switzerland, and Germany, accounted for some 20 per cent of FRIO UK’s trade on its own.

Mr Harries spoke again at the January meeting, saying previous articles in the Western Telegraph had shown a great deal of public support for the scheme, which had no local objections, adding of the previous ‘minded to’ approval: “Comments on the Western Telegraph [story] show the general populace would be like-minded with the councillors.”

Cllr Mark Carter said: “The only comments [locally] are why aren’t they allowed to continue? It’s almost an ideal business, they are there, it’s tidy, they are getting on with it, there’s never a complaint, it is very hard to see the business that is going on there; I’m absolutely fully supportive of this family.”

Officers had, if members were again supportive of the scheme, proposed a Section 106 legal agreement condition for approval, to ensure the FRIO ASTRID storage and distribution use remains in the same ownership and control as the existing farm business.

A call by Cllr John T Davies to again go against the officer recommendation of refusal was made, supported by 11 members, with one voting for refusal.

The application will now go before a future full council meeting for a final decision, expected to be the March meeting.