FARMERS across Pembrokeshire say recent changes to inheritance tax rules have eased immediate pressure on family farms but insist the Government’s climbdown has not resolved deeper concerns about long-term security and confidence in the agricultural sector.

The UK Government has confirmed that the threshold for 100% Agricultural Property Relief (APR) and Business Property Relief (BPR) will rise from £1 million to £2.5 million per individual. When combined with measures announced in last month’s Budget allowing unused reliefs to be transferred between spouses, the change could provide an effective allowance of up to £5 million for married farming couples. The reforms are due to take effect from April 6, 2026.

While the move has been welcomed by farming organisations, many farmers argue it reduces the immediate risk without removing the underlying problem facing family farms, particularly in rural counties such as Pembrokeshire where land values have risen sharply while farm incomes remain under sustained pressure.

Local Senedd Member Sam Kurtz MS said the changes, while welcome, had not gone far enough to address the uncertainty facing farming families in Pembrokeshire. He said many farmers remained concerned about how land and assets would be valued under the new rules and warned that confidence had been shaken by the way the original proposals were introduced. Mr Kurtz added that long-term clarity was essential if family farms were to plan for succession and continue investing in their businesses.

The Farmers’ Union of Wales (FUW) said the revised thresholds would provide “much-needed breathing space” for many families, but warned that farming businesses remain vulnerable because they are often asset-rich but cash-poor. The union has argued that farms cannot be treated in the same way as other assets when inheritance tax policy is being designed.

The original proposals to reform inheritance tax earlier this year sparked widespread anxiety across Welsh agriculture, with fears that farms could be forced to sell land or break up long-established businesses to meet future tax liabilities. In Pembrokeshire, where many farms have been passed down through generations, industry figures said the uncertainty disrupted succession planning and caused families to delay investment decisions.

Some farmers who spoke to national media following the Government’s reversal described the decision as a welcome U-turn but said it came too late to undo the stress caused by the earlier proposals. One farmer said the change was “the best Christmas present for a lot of farmers” but criticised what he described as a lack of understanding shown toward rural communities during the original policy rollout.

Others involved in protests against the reforms said the episode had damaged trust, warning that uncertainty alone can be enough to undermine family farming businesses even if policies are later amended.

Political figures have also acknowledged that the debate is not settled. The chair of the Welsh Affairs Committee said the increase in thresholds was a positive step but called for a Wales-specific assessment of how the changes will affect farming communities, warning that further scrutiny is needed.

Farmers are now pressing for clearer guidance on how the new rules will work in practice, including how land and assets will be valued, how reliefs will apply to tenanted farms and family partnerships, and whether future governments could revisit the policy.

The FUW has said it will continue discussions with Ministers in the new year, arguing that restoring confidence is essential at a time when Welsh agriculture is already facing rising costs, policy change and wider economic uncertainty.

Industry representatives warn that without long-term stability, family farms in Pembrokeshire and across Wales may still struggle to plan confidently for the next generation, despite the Government’s partial reversal on inheritance tax.

NFU Cymru warns processors over sudden reductions as costs remain high

MILK processors collecting from dairy farms across Pembrokeshire have been accused of imposing sudden cuts to farmgate prices as they seek to curb oversupply.

The reductions come at a time when many dairy farmers are already under strain, with production costs continuing to rise despite falling milk prices.

NFU Cymru has written to processors urging them to act responsibly and warning that the current approach risks placing further pressure on an already stretched sector.

In its letter, the union says the combination of sharply lower milk prices and persistently high costs is creating serious financial challenges for farmers, particularly as they head into the winter period.

The union has also reminded processors of their legal obligations under the Fair Dealing Obligations (Milk) Regulations, which came into force in 2024. The rules require any changes to supply contracts, including price adjustments, to be made in line with agreed terms and within the framework of the regulations.

Jonathan Wilkinson, chair of the NFU Cymru dairy board, said it was vital that the dairy supply chain operated in a fair and transparent manner during what is proving to be a difficult period for producers.

He said global commodity markets remain under pressure, with record milk volumes being produced both in the UK and internationally, making trust between farmers and processors more important than ever.

NFU Cymru warned that the unexpected nature of recent price cuts, combined with ongoing costs such as wages and borrowing, was putting farmers under considerable strain. The letter was also signed by the chairs of other UK dairy boards.

The union is calling on processors to engage openly with their suppliers, ensuring farmers feel able to raise concerns and understand how feedback will be addressed.

NFU Cymru also acknowledged that farmers have responsibilities of their own, including ensuring milk produced meets contractual requirements and agreed volumes.

However, the union said it firmly believes that where farmers and processors work together with openness and trust, the dairy sector is best placed to weather the current challenges.

SAUNDERSFOOT is preparing to welcome thousands of swimmers and spectators for its annual New Year’s Day Swim, with this year’s event adding a lively new twist ahead of the traditional dash into the sea.

To mark the build-up to the swim’s fortieth anniversary in 2026, organisers have confirmed that the warm-up will be led by the Pembrokeshire Boot Scooters, who will kick off proceedings with a line dance on the beach.

Participants will be encouraged to join in the “House of Bamboo” routine, with the event’s mascot, Charlie Shivers, even recording a step-by-step guide in advance to help swimmers practise before the big day.

The Saundersfoot New Year’s Day Swim is one of Pembrokeshire’s best-known festive traditions and regularly attracts more than 2,500 participants, with many more lining the seafront to watch. Despite its name, the event is described by organisers as a “dash and splash,” requiring swimmers simply to enter the water and dunk in before returning safely to shore.

The swim is open to all ages, although children under sixteen must be supervised by an adult at all times. Participants aged eighty and over are encouraged to go no further than knee depth.

Run on a not-for-profit basis, the event raises money for nominated charities and community groups. Swimmers are invited to fundraise for causes of their choosing, with sponsorship totals boosted through bucket collections and commercial backing from local businesses.

Entry to the swim must be completed online, either in advance or on the day, and swimmers must collect a wristband before taking part. Wristbands can be collected from Salt on the Strand in Saundersfoot or from the pickup point at the beach slipway. Only those wearing wristbands will receive a commemorative medal.

Organisers are advising swimmers to allow plenty of time for wristband collection on the morning of the event, as the village is expected to be extremely busy.

Although winter weather can be unpredictable, the swim has never been cancelled in its history. Final safety decisions will be taken by the Water Safety Team, who will monitor sea and weather conditions closely in the lead-up to New Year’s Day.

With limited parking available in Saundersfoot, visitors are being encouraged to use public transport or the Park & Ride service operating from Kilgetty Community Centre between 10:00am and 2:00pm on January 1.

Charlie Shivers, the swim’s mascot, was named by pupils at Saundersfoot Primary School and honours local hero Charlie Cox, who famously led the swim well into his eighties.

Organisers have reminded attendees that dogs should not be brought onto the beach due to the size, noise and pyrotechnics used to signal the start of the swim.

Further information, including ticket registration, fundraising details and safety advice, is available through the Saundersfoot New Year’s Day Swim website and social media pages.