Taxing the hands that feed you
There's no denying that the last week has been extremely unsettling for the British agricultural industry since the chancellor, Rachel Reeves, delivered the autumn budget announcement. However, I had to question how much of the hysteria was actually needed within the very short hours following the budget details being announced.
Now, I'm definitely not going to proclaim in this blog post that I am an expert when it comes to discussing taxes and the ways in which they will impact our agricultural businesses. Maths was never my strong point in school, and it definitely isn't high up in my skillset today either. What is my key strength however, which I came to learn back in January this year, is the skill of listening.
If there is anything I have learnt over the past few days from hearing those who feel of social importance on many a media platform, through to those of actual academic intelligence, is this. As a farmer, if you are concerned about the future of your farming business, whether that's your multi generational family farm or a tenanted one, the only place you should be going for advice on the topic of Rachel Reeves's inheritance tax and budget changes, is to your accountant, solicitor and land agents. That's it.
These professionals are the experts you employ as part of your business to help make the decisions to safeguard both your business and families futures. Not the opinions of those you follow online. Their frustration, understandably, comes from the concerns they have for their own farming landscapes, and not necessarily the concerns of yours. The real beauty of our agricultural industry is the fact that every farming business is different. Every landscape unique to the hands that choose to farm it. I agree with standing together as a community in order to voice our concerns. However, what I don't agree with is the mindset of charging towards those who have made these decisions with frustration and anger rather than facts. I always remember hearing the phrase 'shouting and screaming at the door, will not get you a seat at the table' and on this occasion I believe it more than ever.
For me personally, if there is one positive as an industry we can take from last weeks announcement, it's the hope that those who feel it was not of high importance to have a succession plan in place for your agricultural business before, then realistically now is the time to ensure you get something substantial in place for the future. More fool you if you bury your head in the sand and think all of this is going to go away. Speak to your accountant. Speak to your solicitor. Speak to your family. Get the plan done.
Nevertheless, undoubtably I do have my own concerns following the budget announcement which I fear are of greater concern to not only our industry but also our countries security moving forward. And if you allow me just a little more of your time, I would like to explain what I mean as easily as possible.
Back in June 2024, the Department for Environment, Food and Rural Affairs (DEFRA) announced that sheep and cattle populations have hit their lowest levels since the census began. Sheep numbers had dropped by 4.3% compared to the previous year and cattle numbers by 2%. At first glance you would say that those are not very high percentages to be concerned about however, when you see that the sheep percentage equates to a reduction of 620,000 animals from the previous year, you soon question what impact that has on both our self sufficiency but also our economic trade agreements.
For those of us farming in Wales we have also seen the introduction of the new Control of Agricultural Pollution (CoAP) regulations which came in to force in April 2021, as well as the proposals for the new Sustainable Farming Scheme (SFS) which will replace the Basic Payment Scheme (BPS) in 2026. This new SFS scheme will ask farmers to have 10% of their land planted in trees with an additional 10% set aside for habitat restoration, therefore reducing the land mass in which to produce food. We have also seen the trend in recent years of land and farms being bought for re-wilding purposes.
Now, throw all this in to the mix with what has just been announced through the autumn budget for the changes to inheritance tax, capital gains, carbon taxation which will have an impact on fertiliser prices, vehicle tax changes on double cab pick up trucks and increases in national insurance payments just to name a few, surely you can see why we as a farming industry are getting increasingly annoyed with the people in power wanting to target and threaten the hands that feed not only our UK nation but also our international neighbours.
Food. A simple word but, I think you would agree with me in saying, a very important word for us as a human race. As Alison Rees discussed with me in her Smoko Stories back in 2023 (you can read it here), as humans the only things we need in life to survive are a roof over our head, clothes on our back and food and water in our stomachs. It's that simple.
These recent increase in taxes, proposed reductions in land mass for food production, the decreases in actual British livestock numbers and additions of new trade agreements with countries such as Australia in recent years are only highlighting to me what our governments understanding is of our industry and its attitude towards it. Some of you reading this may not agree with me however, personally I feel concerned that this combination of decisions by our government is potentially as well as already having a major impact on our countries future food security. Making our countries security weaker in the process. More worrying than this, its having a massive impact on the mental health of those who farm within it.
I have been fortunate in the past 10 years of working in this industry to have seen and heard about the vast variety of different farming systems across the UK countryside that all have the same aim. That aim is to produce food of the highest quality in order for us as a society to eat and survive. Ticking off that one important essential for us as a human race. Taxing and targeting the hands of the people who feed you can be described in my mind as removing the soil from the ground beneath you. Removing the knowledge, skillset, individuals and produce from the rural landscape of Great Britain is only going to end with a disastrous outcome.
To you the consumer who may have decided to read this post, who has no physical connection to the land we farmers are farming in the hope of you understanding our industries concern, may I ask one thing of you also. With the festive season fast approaching, where food and celebrations are a plenty. As a rural and farming community we love to see the joy on your faces and the happy memories you make with those you love around you at this festive time of year. We farmers, funnily enough, in all the UK weather conditions that get thrown at us through the 12 months of the year, actually enjoy the fact we are producing the food you choose to eat whilst working in an environment surrounded by our countries beautiful species. Not only just at Christmas time, (I know I mentioned Christmas. I'm sorry. Forgive me) but also throughout the whole year. May I ask that you now stand alongside us and understand why enough is enough with regard to our industry and countries food security being targeted by those who have very little knowledge about how our businesses and overall industry works. Believe me when I say you won't regret it.
Until next time
Hx
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