Farming
Farming inheritance tax changes spark calls for delay amid Welsh concerns
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
Check ewes at weaning to protect next season’s lamb crop
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).
Farming
Reform calls for urgent review of farming scheme
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.
Business
Holiday accommodation conversion of historic farm buildings approved
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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