BOTH farming unions have raised serious concerns over Rachel Reeves' budget.
NFU Cymru said the changes set out pose a threat to the family farm structure and food security, while the FUW says the it will add more uncertainty to the industry.
Among the measures announced was that Agricultural Property Relief (APR) will be reformed from 2026 and that the 100 per cent rate tax relief will come to an end for businesses and land worth over £1 million in the agricultural sector from April 2026.
NFU Cymru called the reforms to APR and BPR 'misguided and ill-thought out', with president, Aled Jones, saying: “The changes announced today are not only a threat to our family farm structure and our tenanted sector but also to our nation’s food security.
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“Today’s budget confirms the UK Government’s intention to reform these reliefs and that will come as very disturbing news to farming families the length and breadth of Wales.
“This also goes against the previous assurance given by the Defra Secretary of State that the Labour Party had no plans to change Inheritance Tax, including APR.
“This tax-raid on agricultural property and businesses is misguided and will seriously harm our family farms, rural communities and our ability to produce affordable food for the nation, whilst delivering negligible revenue to the Treasury.
“The changes announced will see agricultural assets over £1m attract an inheritance tax at a rate of 20% from April 2026, something which will bring the majority of Wales’ family farms into the scope of this tax. Just because a family farm may look like a valuable asset on paper, that doesn’t mean those who work it are wealthy and able to meet a large tax bill.”
FUW President, Ian Rickman, said: “We know the average size of farm holdings in Wales is around 120 acres - with even conservative estimates of land worth and buildings putting most farms at over £1 million in asset value.
“Agricultural Property Relief has long played an essential role to ensure those who inherit agricultural holdings are not crippled by taxes when family farms are passed from one generation to the next.”