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Farming

TFA call for tax reform

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George Dunn: TFA chief calls for changes

THE TENANT Farmers Association (TFA) is encouraging the Government to couple fiscal and legislative reform in its forthcoming plans for changes to agricultural tenancies.

TFA Chief Executive George Dunn said “We are pleased that the Government has signalled its intention to bring forward much needed reform to the legal and policy frameworks surrounding agricultural tenancies, but it must not miss the opportunity to reform the taxation environment within which agricultural tenancies operate. Tax is a major driver in the land market and for the decisions land owners make about land occupation. Significant, positive change can be achieved with a small number of sensible tax reforms”.

The top three tax changes the TFA would like to see are:

  • Restricting Agricultural Property Relief from Inheritance Tax on let land only to land let for 10 years or more.
  • Abolishing Capital Gains Tax rollover relief for new land purchases but extending relief to investments in fixed equipment on let land.
  • Abolishing Stamp Duty Land Tax (SDLT) on agricultural tenancies.

“Whilst some are calling for the abolition of Inheritance Tax Relief on farm land, this would be a mistake. History shows this simply leads to unnecessary estate fragmentation and negative restructuring. Instead, we should promote best practice by restricting the relief to land let on the most secure tenancies – those of 10 years or more. There are too many short term farm tenancies which stifle investment, good soil and environmental management and farm business resilience. Promoting longer term tenancies will benefit us all,” said Mr Dunn.

“A major driver of inflation in the land market in recent years has been the availability of Capital Gains Tax rollover relief. Individuals who have made sizeable capital gains elsewhere in the economy have been drawn into the land market as a safe, tax efficient investment driving up its price to unsustainable levels. This has got to stop,” said Mr Dunn.

“The TFA would like to see the abolition of Capital Gains Tax rollover relief for land purchases, with exceptions for those who have lost land through compulsory purchase. Instead, there should be a new relief for investments into fixed equipment on to let land which will assist its productivity, resilience and sustainability,” said Mr Dunn.

“In the farming context SDLT makes no sense at all. This tax penalises longer tenancies but these are exactly what we need in farming. SDLT might make sense in the commercial sector where large corporations seek to avoid tax by using long leases with developers but it has no place in the farming world and should be abolished,” said Mr Dunn.

 

Farming

Check ewes at weaning to protect next season’s lamb crop

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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).

 

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Farming

Reform calls for urgent review of farming scheme

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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.

 

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Business

Holiday accommodation conversion of historic farm buildings approved

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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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