Family Farming in Devon — [Sir Mark Hendrick in the Chair]

Caroline Voaden highlighted the importance of family farms in South Devon, covering 1.2 million acres and employing over 20,000 people. She expressed concern about changes to inheritance tax and agricultural property relief, stating that 66% of English farms have a net value of more than £1 million. The NFU pointed out these figures are based on historical data and do not reflect the current state of the agricultural sector. Voaden cited local farmers who would be hit by the new tax, warning that many will sell land or wind down their businesses to reduce future liabilities. She emphasised the severe impact this policy could have on rural businesses and the entire farming community. The Liberal Democrat MP questioned whether the Treasury consulted DEFRA before implementing tax changes affecting farmers in the Budget.

Farming is a tough profession with unpredictable financial outcomes due to factors beyond farmers' control. Family farms are integral to the rural community, providing support for local schools and charity work, and maintaining curated landscapes that attract tourism. The speaker highlighted concerns about illegal meat imports through Dover, posing public health risks and threatening animal welfare standards in UK farming.

Jim Shannon highlighted the importance of food security and discussed inheritance tax on family farms, noting that falling revenues and profits are ploughed back into farms. He pointed out that many farmers will have to sell their land due to a 20% tax increase, impacting production and future generations' ability to take over the farm. Shannon also mentioned an expected 15-20% rise in food prices due to changes in national insurance contributions.

Ordered the debate to continue after a Division in the House, reminding that other Members wish to speak and suggesting each Back Bencher should aim for five-minute speeches.

Ms. Rebecca Smith highlighted the challenges faced by family farms in her constituency, noting that farms are smaller and owned rather than tenanted compared to other areas. She raised concerns about agricultural property relief, environmental land management schemes impacting livestock numbers on Dartmoor, and the need for a working group on uplands. She called for flexibility in stocking rates and joined-up thinking among DEFRA and associated organisations.

Richard Foord highlighted the plight of farmers in mid and east Devon who are facing uncertainty due to inheritance tax changes. He cited a letter from a family farm near Cullompton, expressing their 150-year struggle to regain ownership only to face potential loss again. Foord also mentioned the Derryman family, emphasizing the hard work and contributions of farmers while questioning government figures on how many farms will be affected by the proposed tax changes.

Devon's family farmers, despite producing high-quality produce, face an average farm income £30,000 lower than the national average. The Conservative MP highlighted the importance of Government support for these farms but criticised recent changes such as delinking payments from the basic payment scheme and cutting capital grants, causing uncertainty and financial distress. Will the Minister correct me if I am wrong? When the Government introduced the £1 million cap, they did not look at the size of family farms that will be impacted. Surely they do not understand the value of an estate on death if they have not looked at the size of it, therefore how can they understand correctly the number of claimants who will be impacted?