NFU Cymru will warn the UK government at its annual conference later today that its 'misguided and ill thought-out' farm tax reforms must be reversed.
The union says that many farmers are 'still shocked and concerned' at the 'family farm tax' changes announced in last week’s budget.
Reforms to the agricultural property relief (APR) and business property relief (BPR) were made, which led to widespread concern among most farming groups.
The changes were also contrary to assurances given to farmers by senior figures in Labour in the lead up to this year’s general election.
NFU Cymru President Aled Jones, who will be addressing farmers at the union's conference in Powys later today, said the tax was a 'threat' to the 'family farm structure'.
“There is no doubt that the decision by the chancellor will leave many farmers with neither the means, confidence nor the incentive to invest in the future of their business," he warned.
“The changes announced are not only a threat to our family farm structure and our tenanted sector but also to our nation’s food security.
"This from a government who, just a few short months ago, told us that ‘food security is national security’.
“Let me be clear: taxation on land for the production of food should not be allowed. This misguided and ill thought-out tax reform must be reversed.”
Amid the ongoing challenge to UK government following its budget, NFU Cymru is also calling for Welsh government’s upcoming draft budget announcement to provide the sector with stability.
Last week’s budget confirmed that the funding for agriculture from 2024-25 has now been baselined in each devolved government’s block grant.
This means that around £340m should be forthcoming from the Treasury block grant to Welsh government for agricultural support.
Mr Jones said: "This very much puts the ball in the Welsh government’s court when it comes to setting its draft budget next month including, of course, the provision it makes for agricultural support.
"We now look to see the budget cuts made to the Rural Affairs budget last autumn reinstated in full, maintaining the BPS at current levels for 2025, alongside a range of interventions to support the industry.”
It comes as farmers across the UK are set to descend on central London later this month as part of a rally against the budget.
Organised by the NFU, the 'mass lobby of MPs' will take place at the Church House conference centre in Westminster, on Tuesday 19 November.
Meanwhile, over 150,000 people have signed a petition by the union calling on the government to reverse its decision on agricultural property relief.
