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Future of Farming
04 December 2024
Lead MP
Carla Lockhart
Upper Bann
DUP
Responding Minister
Mary Creagh
Tags
Crime & Law EnforcementTaxationClimateNorthern Ireland
Word Count: 9185
Other Contributors: 20
At a Glance
Carla Lockhart raised concerns about future of farming in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government must revisit these policies to ensure the sustainability of farming for generations to come. The Minister should listen to farmers' concerns and prioritise support for UK agriculture before it is too late. Addressing labour shortages, supporting young farmers through education, and ensuring proper research on environmental measures are crucial.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Farmers face an existential threat from proposed changes to agricultural property relief and business property relief, which will cap full inheritance tax relief at £1 million. Independent analysis shows that up to 75,000 farming taxpayers will be impacted over a generation—five times the Government's initial estimate. In Northern Ireland alone, one third of farms and 75% of dairy farms will be hit the hardest. Farmers are also struggling with labour shortages, environmental restrictions, and disease threats, as well as the impact of Bovaer, an additive aimed at reducing methane emissions from livestock.
It is a privilege to serve under your chairmanship, Sir Roger. Well done to the hon. Member for Upper Bann... The proposed measure will affect 70,000 jobs in Northern Ireland and place an undue burden on families making it difficult for them to pass down their farms...
Ann Davies
PC
Caerfyrddin
Farmers in Wales are threatened by the Government's approach to inheritance tax, which could make 90% of farms responsible for Welsh food production subject to high inheritance taxes. This impacts tenant farmers and could lead to business closures.
Baggy Shanker
Lab Co-op
Derby South
Stressed the importance of British farmers for food security and environmental stewardship, highlighting £5 billion budget commitment over two years and initiatives to support sustainable farming and disease defence. Criticized previous Conservative government policies for damaging rural communities.
Dan Aldridge
Lab
Weston-super-Mare
Agreed with his colleague on the importance of stable government funding for farming, mentioning the £5 billion budget increase and commitment to sustainable food production. Also noted criticism over tax relief measures.
Ellie Chowns
Green
North Herefordshire
Farmers in North Herefordshire need long-term policy certainty and increased investment, including a doubling of the farming budget to support environmental land management schemes. The Green party also supports better regulation of the food sector to balance power between farmers and supermarkets.
Jayne Kirkham
Lab Co-op
Truro and Falmouth
Asked her colleague if they agree that giving direction and certainty to farmers with new land use frameworks could help them invest confidently in the future.
Jessica Brown-Fuller
Lib Dem
Chichester
Expressed concern over damaging policies in the Chancellor's 2024 Budget for rural communities, such as cutting agricultural property relief and the carbon border adjustment mechanism. Highlighted potential impact on family farms and sustainable farming practices.
Jim Allister
TUV
North Antrim
The hon. Lady says that 50% of those affected are people who invest in land not for farming; is not the answer to put 40% inheritance tax on them and 0% on the real farmers? Land prices in Northern Ireland are twice as high, making the tax burden greater. There is double taxation for family farms that buy extra land with taxed profits. The Government should exempt genuine farmers and target those exploiting tax relief schemes.
Jim Shannon
DUP
Strangford
Without small family farms, there is no food sustainability or safety in Northern Ireland. Most of the 25,000 farms are owned by cash-poor farmers who cannot survive with inheritance tax and lack protection from farming grants. The average farm value in Northern Ireland is £14,000 per acre for a 100-acre plot, making it hard to meet the threshold without changes. Noted that 65% of farmers in Northern Ireland will be impacted by the family farm tax according to John McLenaghan, a legal officer at the Ulster Farmers Union. Criticised the Minister's legal opinion for being inconsistent with this.
John Milne
Lib Dem
Horsham
The local farms and businesses in Horsham are interdependent. A constituent farmer supports his family and elderly relatives through three separate businesses, highlighting the pressures from national insurance hikes, phasing out of direct payments, and removal of tax reliefs. The tax hurts rural communities by threatening sustainable food systems and job-filled areas.
Lee Dillon
Lib Dem
Newbury
He highlighted the importance of farming to rural communities and criticised government underspending on farmers, noting a £227 million shortfall in promised funding. He expressed concern over tax changes affecting 55 farms in his constituency and warned that up to 75% of commercial family farms could exceed the £1 million threshold due to inflation. He also mentioned a farmer earning just £6.22 an hour, stressing the need for government support.
Neil Hudson
Con
Epping Forest
Acknowledged the importance of farming and its challenges, emphasising biosecurity as national security. Noted the Government's £208 million allocation for the Animal and Plant Health Agency HQ in Weybridge but urged further funding to complete the project. Highlighted the Genetic Technology (Precision Breeding) Act 2023's role in disease resistance and climate-resilient crop development, while criticising family farm tax for damaging food security, rural communities, and farmer mental health.
Perran Moon
Lab
Camborne and Redruth
Argued that closing the tax loophole exploited by speculative farmland acquisition should be a priority, questioning why there were not more Conservative MPs present to support farming issues beyond the shadow Minister.
Richard Holden
Con
Basildon and Billericay
The hon. Member expressed concern about the broader impact of proposed tax changes on the agricultural, business, and food sectors across the UK economy.
Richard Tice
Reform
Boston and Skegness
Hundreds of family farmers in Boston and Skegness are appalled at the inheritance tax, with one farmer cancelling a £1 million expansion to his strawberry farm. The threshold needs adjustment to avoid forced sales upon death and allow continued investment.
Robin Swann
UUP
South Antrim
The hon. Member agreed with disappointment towards recent proposals regarding bovine TB in Northern Ireland, which did not provide concrete measures to address the problem. He criticised the government's dismissal of genuine concerns about inheritance tax changes, stating that up to 75% of dairy farmers will be affected. He quoted a Northern Ireland Agriculture Minister who confirmed these figures are based on solid analytical data from the Agricultural Census 2023.
Sammy Wilson
DUP
East Antrim
My hon. Friend shared anger over the Government's justification for a policy that negatively impacts ordinary landowners rather than addressing the issue of big landowners evading inheritance tax.
It is a pleasure to serve under your chairmanship, Sir Roger. I grew up in a rural community as well, and I know how hard farmers work... 50% of our farmland is being bought up by wealthy landowners who are seeking it to avoid inheritance tax...
Seamus Logan
SNP
Aberdeenshire North and Moray East
Labour shortages are impacting farms in Aberdeenshire, leading to unpicked food. A regional visa for rural farms could help address this issue. The speaker also expressed concerns about changes to agricultural property relief affecting family farms.
Tom Gordon
Lib Dem
Harrogate and Knaresborough
Interjected, agreeing with the previous speaker about the challenges faced by farmers, mentioning a £227 million underspend by the Conservatives on farming support.
Government Response
Mary Creagh
Government Response
It is a pleasure to serve under your very crisp chairmanship, Sir Roger. I pay tribute to all hon. and right hon. Members for whittling down what must have been very long speeches into very short, but none the less well-received and well-delivered, speeches. We are committed to working closely with devolved Governments as we work to support British farmers and boost the nation's food security. Despite the difficult fiscal situation, we are maintaining the total level of Government support to farmers across the UK, including £5 billion in England over two years for sustainable food production. Environmental land management schemes will receive £1.8 billion in 2025-26, and we have announced that we will rapidly release £60 million through the farming recovery fund, supporting approximately 13,000 farm businesses affected by severe flooding last winter. We are also investing £208 million to protect the nation from disease outbreaks, and we will lower energy bills for farmers by switching on GB Energy, introduce grid reform for renewable energy integration, use Government purchasing power to back British produce, introduce a land use framework balancing food security with nature recovery, and launch a cross-Government rural crime strategy. On agricultural property relief changes, the Treasury's figures show that 500 estates a year will be affected, based on actual claims data endorsed by the independent Office for Budget Responsibility. The reforms will not be introduced until April 2026, giving farmers time to plan and seek professional advice. We are better targeting tax reliefs to make them fairer and protect small family farms while fixing public services that farming families rely on.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.