Farming
Why farmers say inheritance tax changes do not go far enough
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.
Farming
Agrisgôp helps Welsh farming families tackle succession challenges
A PROGRAMME designed to support farming families in planning for the future is helping to break down one of agriculture’s most sensitive issues – succession.
Farm inheritance and succession planning returned to the spotlight in 2024 following UK Government reforms to inheritance tax (IHT), prompting renewed concern across the industry.
In response, Agrisgôp leader Elaine Rees Jones brought together farming families in the Welshpool area to take part in a structured programme aimed at addressing the issue head-on.
Agrisgôp, a fully funded management development initiative, encourages farmers to work collaboratively, building confidence and business skills through action learning.
Two distinct groups emerged: one made up of parents seeking to plan the future of their farms, and another of younger family members exploring how to take on responsibility and transfer knowledge from the previous generation.
A key theme identified early on was the importance of communication between generations.
Elaine said: “The meetings have offered the opportunity to gain professional and peer advice, time away from the farm to assess situations, and a safe, confidential space for discussion.
“Group members have shared concerns and apprehensions while getting to grips with the scale of the challenge, and have begun to develop action plans.
“The honesty and openness shown has been incredibly humbling.”
For many participants, the programme has provided the confidence to begin formal discussions with professional advisers.
One farming couple, currently working through the process of passing assets to their two sons, said the experience had been invaluable.
“It has made us tackle things properly. We had already started looking at succession before the Rachel Reeves budget, so this wasn’t a knee-jerk reaction.
“It’s a complicated process with no easy answers, and every farm is different. But Agrisgôp has helped us go into meetings with solicitors and accountants informed, rather than just accepting advice blindly.”
Another participant described succession planning as “mind-blowing” before joining the group, adding that expert input had highlighted the importance of early preparation.
The programme included a recent panel session in Welshpool, where professionals returned to answer questions from participants, alongside one-to-one sessions to clarify individual plans.
Specialist advice was provided on legal, financial, and land valuation matters, with a clear message emerging on the importance of having a valid will in place.
Angharad Hird, of Lanyon Bowdler Solicitors, warned that failing to make a will can have serious consequences, highlighting a case where a young farmer died unexpectedly. Under intestacy rules, his estate was divided between his wife and children in a way that may not have reflected the family’s wishes.
Financial planning was also a major focus. From April 2027, unused pension funds will be included within estates for IHT purposes, potentially attracting tax of up to 40%.
Emma Hall, a chartered financial planner, said some clients are already restructuring their finances to mitigate future liabilities, including placing assets into trusts or converting pension funds into income-generating annuities.
Land and property valuation was another key consideration. Richard Corbett, of Roger Parry & Partners, stressed that valuations must reflect current market conditions at the time of assessment, while also taking into account factors such as shared ownership or rights of way.
Accountant Sion Roberts highlighted the importance of setting emotion aside when making decisions.
“There is no one-size-fits-all solution,” he said. “Each farm is different, so it’s vital to understand your priorities and get the right advice.”
The issue of care fees and asset transfers was also raised, with warnings about the risks of deliberately reducing assets to avoid future costs.
Alongside Agrisgôp, Farming Connect’s Succession Pathway offers structured support for families navigating the process. This includes business reviews, facilitated family meetings, bespoke planning, and access to specialist legal services.
Organisers say early planning is crucial to securing both family relationships and the long-term future of farm businesses.
Farmers interested in accessing support can contact Farming Connect on 03456 000 813 or visit their website for further information.
Business
Call to keep holiday pod at Pembrokeshire Narberth farm
A CALL to keep a holiday pod sited on a Pembrokeshire farm, as part of a wider holiday pod farm diversification over two areas which saw the larger part supported, has been submitted to county planners.
In an application to Pembrokeshire County Council, Bill Ridge of Vaynor Farm Ltd, Bethesda, through agent Gerald Blain Associates Limited, seeks retrospective permission to keep a self-catering pod at Broomley Farm, Sodston, Narberth, works having been completed in 2022.
The application is part of a wider scheme of holiday pods diversification encompassing two farms.
Back in December, Pembrokeshire County Council’s planning committee granted delegated retrospective permission to Vaynor Farm Ltd 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.
A supporting statement accompanying the latest application says: “Vaynor farm is a 400-acre working dairy farm with a herd of 700 milking cows. The enterprise comprises of three self-catering pods. Two of the pods are situated at the Vaynor homestead and another at the opposite end of the holding at Broomley farm.
“The first unit was sited adjacent to Vaynor farm stead some four years ago and a further two added in subsequent years. The units have enjoyed successful occupancy rates over several years offering a unique secluded tourism offer on a working dairy farm, more detail of which is outlined within the supporting business plan.”
It says the Broomley farm application is a resubmission of a previously refused scheme, adding: “It should be noted that this application was originally part of [the application] which was recommended approval at planning committee in December 2025. This element however was separated due to its location on another part of Vaynor farm deeming it not possible to be considered under the same application.”
At the December meeting, an officer report said: “A business plan has been submitted with [that] 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.”
That application was conditionally approved; the latest part to be considered by planners at a later date.
Farming
Experts warn Senedd of ‘systemic failure’ to enforce animal welfare laws in Wales
Fewer than five per cent of farms inspected as prosecutions remain rare
LEGAL experts have warned that animal welfare laws in Wales are being routinely ignored due to a “critical failure” in enforcement, with thousands of farms going uninspected and breaches rarely leading to action.
The stark warning came during an event at the Senedd on Tuesday (Mar 25), organised by the Animal Law Foundation and sponsored by Carolyn Thomas MS.
The meeting brought together legal specialists, enforcement bodies and Members of the Senedd to examine what campaigners describe as a growing gap between legislation and real-world enforcement.
Figures presented at the event paint a troubling picture. Just 4.67 per cent of Wales’ 34,777 farms are inspected, with only one inspector responsible for every 657 farms. Even when concerns are raised, only around 65 per cent of complaints result in an inspection.
More strikingly, where breaches are identified, prosecutions are launched in fewer than one per cent of cases.
The Animal Law Foundation described this as part of a wider “Enforcement Problem” — a term used to describe situations where laws exist but are not effectively applied.
Edie Bowles, Executive Director of the foundation, said: “These figures point to a system that is simply not working. When inspections are rare, complaints do not trigger investigations, and breaches do not lead to enforcement action, the legal safeguards risk becoming little more than words on paper.”
She added that meaningful enforcement is essential not only to protect animals, but to maintain public confidence in the law.
Carolyn Thomas MS said ensuring existing laws are properly enforced “should not be a controversial ask,” but acknowledged it remains a significant challenge.
Calls for stronger oversight were echoed by representatives of Animal Licensing Wales, who highlighted the need for greater resources and capacity within enforcement bodies.
The findings are backed by recent undercover investigations, including footage from a Wrexham slaughterhouse and a farm at Tafarn Y Bugail, which allegedly showed serious mistreatment of animals.
Abigail Penny, Executive Director of Animal Equality UK, said: “What we uncovered was an extraordinary failure of the systems meant to protect animals. That such cruelty could persist, undetected and unchallenged, shows the urgent need for stronger oversight and meaningful sanctions.”
Animal welfare on farms in Wales is governed by the Animal Welfare Act 2006 and a range of additional regulations covering farming, transport and slaughter. Enforcement responsibility lies primarily with local authorities, while the Food Standards Agency oversees welfare in slaughterhouses.
Campaigners say that without urgent reform, those protections risk being undermined by a lack of inspections, limited resources, and a reluctance to take enforcement action.
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