Farmers on NFU Cymru's Council have sent a strong message to the UK government that the Welsh farming industry remains strongly opposed to the IHT proposals.
Members of council - the union’s governing body made up of farmers - gathered in Cardiff for a meeting to discuss issues affecting the industry.
Top of the agenda was the UK government’s planned changes to agricultural property relief (APR) and business property relief (BPR) announced in the October budget.
Dame Nia Griffiths MP, Parliamentary Under-Secretary of State for Wales, attended the meeting, giving farmers the chance to voice fears over the impact the proposals will have.
Concern was centred at the huge disparity between the UK government financial data, upon which its APR policy figures are based, and the true value of the average farm, its infrastructure and the reality of the situation facing families.
Government estimates that only 500 UK farms a year will be affected by the changes, however union data – provided by independent third party analysis – indicates around 75% of farms will be affected.
During the session, many farmers expressed their inability to meet the costly tax burden brought about by the inheritance tax proposals.
They cited the new Welsh government farm business income figures as an example of the challenging financial margins many farms are working within.
These figures, farmers say, provide further evidence that many businesses simply do not have the capital to pay the incoming tax burden without selling land and/or reducing their productive capacity.
Speaking after the meeting, NFU Cymru President Aled Jones warned that farmers will be put in the 'invidious position' of having to choose between selling assets, reducing productive capacity or finishing farming altogether.
"During the session the minister heard a long list of practical concerns and worrying ramifications that these businesses have had imposed on them as a result of the October budget proposals.
"At a time when the challenges around feeding a growing population could not be more pertinent, the UK simply cannot afford to see food security jeopardised."
Of the 40 members in attendance at the meeting, at least 80% said they were going to be affected by the inheritance tax changes.
As a representative sample, this brings into question the UK government’s assertion that only 500 UK farms are going to be affected each year.
NFU Cymru Deputy President Abi Reader said: “It’s imperative that these changes are based on robust, reliable data and for that reason government needs to revisit this policy and restore some much-needed confidence.”
On Saturday 25 January, towns and cities across the UK will be hosting protests as part of the industry's next steps in raising attention to the issue.
All four UK farming unions – NFU Scotland, NFU, NFU Cymru and Ulster Farmers’ Union - are organising the action and will participate directly in it.
