The National Farmers’ Union (NFU) president, Tom Bradshaw, is set to deliver a critical speech urging the UK government to reverse its inheritance tax (IHT) policy on farms. Bradshaw argues that the tax, imposed on farm businesses valued at over £1 million, is detrimental to farmers’ ability to plan, invest, and maintain hope. He labels the policy as “morally wrong” and accuses the government of breaking its promises.
Government Policies and Their Impact
Criticism of Agricultural Subsidy Transition
Bradshaw criticizes the transition from EU-era agricultural subsidies to payments for public goods like clean water and nature habitat. He describes the current transition as botched and attributes the flawed policies to the previous government. This transition, combined with bad policy, geopolitics, and unprecedented weather, has led to a severe cash flow crisis in some agricultural sectors. Farmers find themselves grappling with unexpected financial pressures that threaten their stability.
In Bradshaw’s view, the mishandled transition has left farmers in a precarious position, and he believes the government must take swift action to rectify the situation. The new payment system, which prioritizes environmental benefits, lacks sufficient support and clarity, making it difficult for farmers to adapt. As a result, many are struggling to manage their finances and sustain their livelihoods, placing the entire agricultural sector at risk.
Financial Viability Concerns
The NFU president expresses concern about farmers’ financial viability up to 2025. He highlights the widespread worry among farmers about their ability to sustain their businesses due to the current policies. Bradshaw is expected to emphasize the negative impact of the inheritance tax on tenant farmers, the elderly, and upcoming generations. The tax’s burden on these groups is particularly worrisome, as they are often the most vulnerable within the farming community.
Bradshaw argues that the inheritance tax policy, in its current form, prevents farmers from being able to plan for the future, make necessary investments, and maintain a sense of hope. This financial uncertainty is exacerbating the existing challenges faced by farmers, including fluctuating market conditions and environmental changes. Without prompt action from the government, the long-term viability of many farm businesses remains in jeopardy.
Government Initiatives and Responses
Environment Secretary’s Announcements
At the conference, Environment Secretary Steve Reed is expected to announce initiatives aimed at bolstering farmer profits and improving sector relations. Planned measures include new regulations for government catering to support British produce, significant investment in agricultural technology, and the extension of the seasonal worker visa program. These initiatives are intended to address the critical issues highlighted by Bradshaw and the broader farming community.
Reed’s proposed investments in agricultural technology are particularly noteworthy, as they aim to facilitate innovation and efficiency within the sector. By modernizing farming practices, these investments will help farmers improve productivity and sustainability. Additionally, the extension of the seasonal worker visa program is expected to alleviate labor shortages, ensuring that farms can operate at full capacity during peak seasons.
Additional Government Measures
Reed will also introduce enhanced controls for animal disease and safeguards for farmers in trade agreements. These initiatives are part of the government’s broader strategy to address the issues raised by the NFU and support the agricultural sector. The new measures aim to protect farmers from potential trade disputes and market disruptions, providing a more stable and predictable environment for their businesses.
Furthermore, the government’s commitment to enhancing animal disease controls demonstrates a proactive approach to maintaining animal health and welfare. By implementing stricter regulations and monitoring systems, the government seeks to prevent the spread of diseases that could devastate livestock and impact farm profitability. These combined efforts reflect a comprehensive strategy to address the multifaceted challenges faced by the farming community.
Broader Context and Advocacy
Protests and Alternative Solutions
The “family farm tax” has led to widespread protests within the agricultural community. Bradshaw will underscore the limited recognition of farming in Labour’s manifesto and condemn the Treasury for ignoring the NFU’s alternative solutions. He vows that the protest against the tax will persist until the policy is reversed. Bradshaw’s strong stance highlights the deep frustration felt by many farmers who believe their concerns have been overlooked.
The NFU has proposed several alternative solutions that would alleviate the financial burden on farmers while still achieving the government’s revenue goals. These solutions include exemptions for certain types of farm businesses and adjustments to the tax thresholds to better reflect the realities of the agricultural sector. By advocating for these changes, Bradshaw aims to create a fairer system that supports farmers’ long-term sustainability.
Calls for Enhanced Environmental Schemes
Bradshaw will call for enhanced payments for more ambitious environmental schemes. He will stress the importance of prioritizing food security against the backdrop of geopolitical uncertainties and climate change. This aligns with the NFU’s policy blueprints designed to support sustainable, profitable farms. Environmental stewardship and food production are seen as complementary goals, rather than competing priorities.
The proposed enhancements to environmental schemes involve increased funding and incentives for farmers who adopt practices that benefit the environment. These practices include habitat restoration, water conservation, and carbon sequestration. By rewarding farmers for their contributions to environmental sustainability, the government can encourage widespread adoption of these practices, ultimately benefiting both the agriculture sector and the broader ecosystem.
Farming’s Role in the Economy and Environment
Economic and Environmental Significance
Rain Newton-Smith from the Confederation of British Industry (CBI) will amplify solutions by stressing farming’s critical role in the broader economic and environmental contexts. She advocates for strong backing for the agricultural sector as a foundation for growth in new technology and clean energy. Newton-Smith’s perspective highlights the interconnectedness of farming with other key industries and underscores the importance of supporting the sector’s development.
Newton-Smith emphasizes the need for collaborative efforts between the government, industry stakeholders, and farmers to drive innovation and sustainable practices. By investing in cutting-edge technologies and renewable energy sources, the agricultural sector can play a leading role in the transition to a greener economy. This approach not only boosts the sector’s resilience but also contributes to broader environmental goals.
Achieving Net-Zero Emissions
Tom Bradshaw, president of the National Farmers’ Union (NFU), is preparing to give a pivotal speech urging the UK government to reconsider its inheritance tax (IHT) policy concerning farms. Bradshaw contends that this tax, which is applied to farm businesses that are valued at over £1 million, severely hampers the farmers’ capacity to plan for the future, make necessary investments, and maintain their optimism. He asserts that the policy is “morally wrong” and goes so far as to accuse the government of not honoring its commitments. Bradshaw’s concerns stem from the belief that the current IHT policy places an unfair burden on farmers, potentially threatening the sustainability of agricultural enterprises and the broader farming community’s well-being. His call for action is not just about economic pragmatism; it’s also about ensuring that farming families can continue their way of life, pass on their traditions, and contribute to the country’s food security without being unduly penalized.
