The Farmers’ Union of Wales (FUW) has met with Plaid Cymru’s Westminster spokesperson for the Environment and Rural Affairs Ann Davies MP in Westminster to discuss vital protections for Welsh and UK agriculture ahead of the impending UK Budget.
With the Treasury’s window for official representations closing imminently, the meeting allowed the FUW to discuss several financial challenges for Welsh family farms.
Inheritance Tax (IHT) was a key point of discussion. The FUW reinforced its position that agricultural and business assets should be fully relieved from inheritance tax when passed from one generation to another for farming purposes. It is imperative that the government protects family farms from punitive IHT changes if the issue is re-opened.
An innovative growth strategy; introducing tax incentives for landlords who offer longer tenancy agreements to new and young agricultural entrants, was also discussed. This proactive measure would signal a positive commitment by the Prime Minister to support the next generation of Welsh and UK farmers.
The FUW praised Plaid Cymru’s ongoing efforts to seek clarity on the Prime Minister’s new approach to devolution and future Welsh funding, particularly given the need to revise the Barnett Formula.
To combat mounting volatility, the FUW lobbied for a dedicated UK emergency fund designed to support farming businesses with short-term crises and financial challenges such as the spread of Bluetongue Virus, wildfires and fodder shortages.
Finally, the Union raised pressing concerns regarding the Carbon Border Adjustment Mechanism (CBAM) which will tax imported fertilisers from the 1 of January 2027. The FUW questioned how the government seeks to restore domestic fertiliser production and enquired if an impact assessment has been conducted on the increase in food production costs that will inevitably result from these additional taxes.
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