Over a week has passed since a budget that has completely rocked the agricultural sector, and the potential ramifications for individual farms, food security and the wider rural economy, are still unfolding.
Despite some pre-budget concerns around inheritance tax and the farming budget given the fiscal pressure, I genuinely thought the Government, advised by senior civil servants who presumably understand agriculture, would protect family farms. But it’s been a harsh reality check.
A stark disconnect
Whether or not this decision has been based on inaccurate data, this budget shows a Government far removed from the realities of farming. While there is obviously support for farmers among a proportion of the general public, the general perception still paints them as wealthy landowners, ‘swanning around in £400 wellies and driving Range Rovers’.
I’ve heard many people comment, ‘what they are they all complaining about? It’s about time things were levelled up’
"The disregard for farmers’ contributions and the gross undervaluing of their role in both food production and environmental delivery, is hugely frustrating."
Bridging the communication gap
But, in general, this sentiment does not stem from pure animosity – it’s a sheer lack of understanding, highlighting a broader issue around communication.
As an industry, we must step up our efforts to reshape public perception and educate both the Government and society about what farming truly entails and delivers.
Campaigns like Farmers Guardian’s ‘Save Britain’s Family Farms’ are exactly the sort of initiatives that are needed to showcase the immense value family farms provide, and it’s encouraging to see the industry getting behind it.
Overturning APR policy
There is no doubt the APR changes – as they currently stand – are a disaster for working farms and the industry has to work directly to fight this. My husband and I run a beef and sheep farm in Shropshire and we are directly in the crosshairs with an elderly parent still in ownership of the land. Recent tax advice was for her to keep assets in hand. We have no time to plan to relieve the tax burden and we likely would have to sell land to pay the tax bill. We are one of many in this very situation.
While some see it as only fair for such significant capital assets to be taxed, what most don’t understand is that the average return on capital for a farm business is just 1%. With marginal profits and a transition away from BPS also to navigate, this looming tax change could wipe out many family farms forever.
Mass lobbying on the farming budget
NFU’s London rally on the 19 November is a good opportunity to press for a Government rethink and I’ll be there to speak with our local MP, alongside many others fighting to protect UK farming. However, in our push against these inheritance tax changes, we must carefully navigate public opinion to avoid alienating ourselves further.
I’m sure there will be much more to learn over the coming weeks and I know the industry will continue to rally until a fair outcome is achieved.
I will be reporting from London so watch this space as communications around this farming budget continue to unfold.
