In our third farmer and grower column, Field of View, Derek Jarman, who is the Worcestershire NFU vice chair, talks about the long-fought campaign against the family farm tax.
By Derek Jarman
MANY of you will have seen the Stop the Family Farm Tax banners up on farms around the Vale of Evesham and further afield over the last 15 months.
We have all been busy trying to explain how difficult the tax will be, particularly for elderly and vulnerable farmers, unable to take action in time to mitigate the changes.
For those who don’t know, it’s all been about Government proposals to end the 100 per cent tax relief on inherited agricultural assets enjoyed by farming families since the 1980s.
Derek Jarman, founder of Hayloft Plants. s
A medium-sized owner-occupied farm could be worth £5million, plus crops and machinery, which would add up to at least £5.5million, less any bank borrowings, which can be substantial.
The Government’s first attempt at taxing farmers was to give a £1million inheritance tax relief and anything over at 20 per cent, allowing the next generation to take up to 10 years to pay it off interest-free.
The issue is that a typical medium-sized farm is run on very tight profit margins, meaning many families would struggle or be unable to pay this tax.
Many might therefore have to sell significant parts of their farm to do so.
Farmers are likely to make less than £25,000 profit in the current cereal market and those in beef and sheep are often battling too.
Meanwhile, dairy, poultry and horticulture go up and down continually, making financial planning very difficult.
You might have seen the NFU’s campaign, know someone in farming or have witnessed the shockwave the family farm tax policy put through the industry. Farmers drove their tractors onto the streets of Westminster in protest.
Right before Christmas, after 14 months of intense lobbying to mitigate the worst impacts of the plans, we had the welcome news that the inheritance tax threshold will be increased to £2.5million (£5m for a couple).
The Government, it appears, had listened, from the Redditch Labour MP Chris Bloore, up to the Prime Minister, Sir Keir Starmer, and Defra Secretary of State, Emma Reynolds. (The last two held high-level discussions with NFU President Tom Bradshaw.)
The announced change means small and medium family farms will now be taken from the ‘eye of the storm’ and greatly reduce the tax burden for many working in the countryside.
The decision gives the next generation of young farmers half a chance to make a living off the land, and more importantly, produce the food that we all need.
I urge those in the Vale to visit the NFU’s campaign page to find out more online www.nfuonline.com/stopthefamilyfarmtax and why your support is so important.
