The Farmers’ Union of Wales (FUW) has warned ministers that rising costs, inheritance tax and looming changes to fertiliser pricing are placing extra pressure on farming families as the UK Government prepares its next Budget.
Union sets out priorities to Westminster
The FUW met Plaid Cymru MP Ann Davies in Westminster to set out what it described as the principal concerns facing farming households across Wales. Among the measures the union wants are continued protection for agricultural and business assets from inheritance tax when farms are passed to the next generation, and tax incentives for landlords who offer longer-term tenancies to young and new farmers.
- Inheritance tax protection — the FUW called for agricultural and business assets to remain fully protected from inheritance tax on succession
- Tenancy incentives — tax measures to encourage landlords to grant longer-term tenancies aimed at improving access for young and new farmers
- Emergency fund — a dedicated UK-wide emergency fund to support farmers facing sudden crises, including disease outbreaks, wildfires and feed shortages
- Fertiliser costs and CBAM — concerns about the impact of the Carbon Border Adjustment Mechanism, due to come into force from January 2027, on the cost of imported fertiliser and on food production
The union told MPs it is increasingly concerned that farming families are vulnerable to sudden financial shocks and need mechanisms to manage unexpected events. It also pressed for clarity on how additional costs introduced by CBAM could affect both producers and consumers.
Calls linked to wider stewardship of rural businesses
In its discussions the FUW emphasised that protecting agricultural and business assets from inheritance tax is central to enabling generational succession on family farms. The union argued that tax incentives to encourage longer tenancies would help open up land and enterprise opportunities for new entrants and younger farmers who currently face barriers to establishing viable businesses.
On the Carbon Border Adjustment Mechanism, the FUW asked whether the UK Government had assessed potential consequences for food production and affordability if imported fertiliser costs rise when the mechanism begins in January 2027.
The meeting in Westminster took place as the Government prepares its Budget; the FUW urged ministers to take the financial pressures facing Welsh agriculture seriously when setting fiscal and sectoral policy.
| Action sought | FUW request |
|---|---|
| Inheritance tax | Maintain full protection for agricultural and business assets on succession |
| Tenancy support | Tax incentives for landlords to offer longer-term tenancies to new and young farmers |
| Emergency support | Establish a UK emergency fund for sudden crises affecting farms (disease, wildfires, feed shortages) |
| Fertiliser costs | Assessment and mitigation of CBAM impacts from January 2027 on imported fertiliser |
The FUW said it has raised these priorities with Ann Davies as part of a wider campaign to ensure farming businesses — including livestock producers — have access to the financial protections and market conditions needed to remain viable. The union stressed the importance of long-term tenure arrangements to support business planning and investment in productive farm enterprises.
Farmers affected by the issues set out by the FUW — succession, tenancy access, sudden crises and input-cost changes — include livestock producers who face narrow margins and are particularly sensitive to changes in feed and fertiliser prices, as well as to shocks such as disease outbreaks or extreme weather events. The FUW framed its requests as measures to protect livelihoods and maintain food production across Wales.
As the UK Budget approaches, the FUW’s submission to MPs sets out a clear set of fiscal and policy interventions it says are needed to address immediate pressures and to help secure the future of farming families in Wales.
