The next generation of farmers are 'browbeaten' by the government's budget announcements, the National Federation of Young Farmers’ Clubs (NFYFC) has said.
Young farmers will have 'serious concerns about an uncertain future' due to the government's proposed tax and wage changes, the body warned today (31 October).
It said that changes to agricultural property relief (APR) will result in more farming land being sold off and further limit farmers' ability to borrow and invest in the future.
And the proposed rise for employer’s National Insurance contributions (NIC) and changes to its threshold will also impact charities employing staff, including NFYFC and its 46 county federations.
Over 23,000 young farmers across England and Wales are members of the NFYFC, making it one of the largest rural youth organisations in the UK.
It heads a nationwide body of 575 Young Farmers’ Clubs (YFCs) dedicated to supporting young people in agriculture and the countryside.
But NFYFC’s YFC AGRI Chair, Luke Cox said the budget 'threatens the continuity and viability' of farms, while 'jeopardising the prospects for a much-needed future generation in agriculture'.
“The next generation already faces significant challenges in accessing land and finance and the budget has only browbeaten us further," Mr Cox added.
“The call for the minister to meet and discuss issues facing the next generation of farmers—both those currently in the industry and those aspiring to join—is more urgent than ever."
The Office for Budget Responsibility estimates average employers will face an extra £800 per employee when NIC these changes take effect in April 2025.
NFYFC chief officer, James Eckley said this increase will be felt by YFC County Federations that, like many charities, are already struggling with increasing costs and reduced funding for rural services.
"Many charities operate on shoestring budgets, and the impact of this additional expense will be felt by them. Difficult budget choices will be necessary in the coming year," he added.
“Our county teams offer vital support to Young Farmers’ Clubs and rural communities, often in isolated areas where youth services are scarce or non-existent."
