Concerns are growing that proposed changes to NI’s rating system could pile more pressure on farming families already facing rising costs and sector instability.
The Ulster Farmers' Union (UFU) is opposing two key proposals: raising the Maximum Capital Value cap from £400k to £485k and halving the early payment discount from 4% to 2%.
The proposals are included in a public consultation by Northern Ireland's Department of Finance (DoF) in late 2023 and a supplementary consultation in early 2025.
The UFU warns that the plans would unfairly hit farm families who’ve invested in homes and outbuildings, pushing up property values.
“Our farm families are already under severe strain with the proposed changes to inheritance tax, input costs and ongoing market volatility," said UFU deputy president, John McLenaghan.
"These latest proposals from the DoF are another blow and will put even more financial pressure on our industry.
“Increasing the rates cap will unfairly penalise farm households, especially those who have invested in building or improving their homes through their own labour.”
He stressed that cutting the early payment discount would hit farmers' finances even further.
"Many farmers pay their rates early to avail of this discount and should it be reduced to 2%, our farmers will be left with another financial burden to manage.
"It might seem like a small reduction, but it makes a huge financial difference for farm families.”
According to the June 2024 census, NI has over 26,000 farms, with UFU research showing many newer farmhouses exceed the £485,000 cap due to size and outbuildings.
As a result, many rural households may lose access to rate relief and see significant increases in their annual rates bills.
DoF says just 1% of homes would be affected, but UFU data shows many rural households would be hit, disproportionately impacting farmers.
The union also emphasises that rural households do not receive the same level of public services as those in urban areas—such as access to sewerage systems and street lighting—which are included in rate calculations.
“Government need to wake up and realise they are pushing farm families to the brink. Not just financially, but emotionally,” said Mr McLenaghan.
“Our farm family structure in NI is already in an extremely vulnerable position due to Labour’s proposed inheritance tax changes.
"To now have the domestic rate proposals looming over them too, is going to severely impact their mental health and wellbeing.”
