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Farming

A kick in the teeth: Welsh Lib Dem warning over ‘family farm tax’

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THE WELSH Liberal Democrats have branded the UK Government’s refusal to amend or repeal its so-called “family farm tax” as “hugely disappointing and a kick in the teeth for Welsh farmers.”

David Chadwick

The party’s Westminster spokesperson, David Chadwick, said the measure will “do immense damage to farmers, food production and environmental stewardship.”

Chadwick told The Herald: “We were hoping the Chancellor would use the Budget next month as an opportunity to reverse course and protect family farms. Instead, they face this tax and cuts to their incomes – after one of the worst harvests on record.

“The Welsh Liberal Democrats will continue to lead the charge against this unfair tax hike, to protect family farms and rural communities who are being taken for granted.”

What the tax means

Under reforms announced in the Autumn Budget 2024, reliefs under Agricultural Property Relief (APR) and Business Property Relief (BPR) will be capped at £1 million per person from April 2026.

Currently, many family farms can transfer farmland, livestock, machinery or business assets to the next generation without paying inheritance tax. The new cap will mean a 20% tax rate applies to assets above the threshold.

The Treasury claims that most small or typical farms will remain exempt, saying that after combining various allowances and spouse transfers, up to £3 million in value could still be protected.

However, farming unions say the figure is misleading, warning that many family farms are asset-rich but cash-poor, making it difficult to pay tax bills without selling land or livestock

Government defence

The Government insists the reform promotes fairness and prevents abuse, arguing that APR and BPR reliefs have been used by wealthy landowners as tax shelters rather than by genuine working farms.

Officials say the change will help raise additional funds for public services while still protecting smaller agricultural estates

Anger in Wales

The National Farmers’ Union has warned the change could be “disastrous” for family farms and succession planning, forcing some to sell land to pay inheritance tax.

In Wales, where many farms are small, upland and low-profit, the impact could be severe. Rural campaigners say the move will undermine food production, biodiversity projects and local economies.

Thousands of farmers from across the UK, including Wales, have already joined protests in London, calling for the tax to be scrapped.

What happens next

The Government has so far refused to withdraw the policy ahead of next month’s Budget.

While reliefs remain in place allowing payment over ten years interest-free, and spousal exemptions still apply, industry experts warn these measures will not protect all family businesses.

The Welsh Liberal Democrats are positioning themselves as defenders of rural communities, accusing the Government of “taking farmers for granted.”

For many in Wales, the fight over the “family farm tax” now represents something bigger – a struggle for the future of farming, food, and the countryside itself.

Community

Wolfscastle farm’s new shed sparked ‘noise nuisance’ claims

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A PEMBROKESHIRE farmer “jumped the gun” in his enthusiasm to build a new cattle shed which includes ‘robot slurry scrapers’ that have been causing a noise nuisance for neighbours, county planners heard.

In a retrospective application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, Aled Jenkins sought permission for a replacement cattle housing and silage clamp at Upper Ty Rhos, Wolfscastle.

An officer report said Upper Ty Rhos consists of a herd of 630 youngstock beef cattle, the applicant seeking permission for the replacement 100-metre-long cattle housing building.

It said the building benefits from a robotic scraping system to internally clean it to improve animal welfare and efficiency.

However, the slurry scraper system in operation has been found to constitute a statutory noise nuisance.

“The introduction of the slurry scraper system has resulted in a new noise source to the locality that is having a significant detrimental impact upon local amenity.  The nuisance noise is directly associated with the extended hours of operation of the slurry scraper system and the noise created by the two motors powering the system including the drive mechanism that moves the scraper through the building to remove slurry produced by the housed cattle.

“To further exacerbate the situation, the building has open voids to the eastern gable end, which is within close proximity to the neighbouring property resulting in the building being acoustically weak.

“An acoustic report has been submitted with mitigation methods provided including relocating motors and associated equipment into external enclosures, reduction of noise egress through openings by installing hit-and-miss louvres and/or PVC strip curtains and consideration of blocking the gap between roof pitches along the ridge of the building.”

Three letters of concern were received from members of the public raising concerns including visual and environmental impact, noise issues and a potential for the herd size to increase.

Speaking at the meeting, neighbour Dr Andrew Williams, who stressed he was not seeking to have the shed removed, raised concerns about the noise from the ‘robot scrapers,’ exacerbated by cattle being concentrated in the immediate area from the wider farm complex.

Agent Wyn Harries addressed concerns about the retrospective nature was a result of over-enthusiasm by his client who “jumped the gun”.

He said there was now a scheme that was “fully worked through,” dealing with noise and other issues.

Members backed approval, which includes noise mitigation to address the impact of the robot scrapers; one member, Cllr Tony Wilcox, abstaining on the grounds of the retrospective native of the building “the size of a football field”.

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Farming

FUW urges government action as plunging dairy prices threaten family farms

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THE FARMER’s UNION OF WALES has sounded the alarm over a sharp and sustained collapse in dairy prices, warning that the situation is placing intolerable pressure on family farms already grappling with regulatory change, rising costs and wider economic uncertainty.

The Union convened an emergency meeting of its Animal Health and Dairy Committee last week to assess the scale of the crisis. Representatives from across Wales reported widespread anxiety, with many members seeing milk prices fall dramatically through the autumn. Processors are now signalling further cuts in early 2026, while commodity markets offer little sign of stability heading into spring.

Farmers, fearful of jeopardising commercial relationships, have approached the FUW confidentially to express grave concern about projected milk payments for the coming months. Many say the offers being made will fall far below the cost of production.

Average milk prices are forecast at just 30–35 pence per litre, against estimated production costs of 39–44 pence per litre (Kite Consulting). On current trajectories, the FUW warns a typical Welsh dairy farm could lose thousands of pounds per month for as long as the downturn persists.

Following its committee meeting, the Union raised the matter directly with Deputy First Minister Huw Irranca-Davies MS during talks in Cardiff on Wednesday, December 3. Officials stressed the immediate threat facing family-run dairy farms and called for urgent consideration of government support to prevent long-term damage to the sector.

Gerwyn Williams, Chair of the FUW Animal Health and Dairy Committee, said the pace of the price crash was “unprecedented”.

“Farmers are facing an impossible situation where input costs remain high while the value of their product plummets. The viability of many family farms is now at serious risk. We need immediate assurances that this crisis is being treated with the urgency it deserves.

“Some can weather a short storm, but rumours that this could continue into summer 2026 will see businesses shut. These modest family farms have already invested heavily to meet regulatory requirements. Cuts on this scale will severely impact their ability to service repayments.”

FUW Deputy President Dai Miles warned that the consequences extend far beyond farm gates.

“Dairy farming underpins thousands of jobs in Wales and is central to the economic, social and environmental fabric of rural communities. When prices fall this sharply, it isn’t just farmers who suffer — local businesses, services and entire communities feel the impact.

“We have made it clear to the Deputy First Minister that government must work with the industry to provide immediate stability and a long-term resilience plan.”

The FUW says it will continue to work with the Welsh Government, processors and supply-chain partners to seek solutions and secure fair, sustainable prices for producers.

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Business

Holiday lets allowed to stay at Narberth dairy farm

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A CALL for a Pembrokeshire dairy farm to keep two “alternative” holiday pods sited without permission as a way of diversifying in an uncertain industry has been given the go-ahead.

In an application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, Vaynor Farm Ltd sought retrospective permission for the siting of two self-catering holiday accommodation pods at The Cart House, Vaynor Farm, Bethesda, near Narberth as part of a farm diversification enterprise.

It was before committee members as it was recommended for delegated conditional approval by senior officers despite being against the development plan.

Previous retrospective schemes, for two self-catering pods along with an application to retain a shepherd hut accommodation pod at another farm, a part of the Vaynor Farm farm enterprise, were refused in 2023 and 2025, the latter due to “an unjustified and harmful impact on the character and appearance of the open countryside”.

Detailing the current application, an officer report for members said the pods: Vaynor Farm Pod within the garden of The Cart House, and The Paddock Pod, on the edge of a small paddock, were constructed off-site and have been transported to their current locations, with external decking, hot tubs, a barbecue area and car parking provided for each pod.

It added: “A business plan has been submitted with the application, which explains that due to uncertainties associated with dairy farming, the applicant has sought to diversify the farm enterprise to incorporate tourism accommodation.

“The application makes the case that the proposed development represents farm diversification. It is acknowledged that the development has resulted in the provision of an alternative type of holiday accommodation for which it has been demonstrated there is a demand, contributing to the diversity and quality of accommodation available within the county and supporting an existing farm business, with consequent economic and social benefits.

“Evidence has been provided that demonstrates the extent to which the pods have provided income which has been used to support the farm business.

“However, officers consider that should planning permission be granted, a [planning obligation] will be necessary to ensure that the accommodation pods continue to support the farm business and are not separated from it at some future point in time.”

Delegated conditional approval limiting the use and occupation of the self-catering accommodation pods to short term holiday use only was moved by Cllr Brian Hall and unanimously backed by committee members.

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