A west Wales MP has slammed the UK Labour government for ‘trying to portray farming as an industry of super-wealthy landowners’, saying that simply is not the case in Wales.

Plaid Cymru agriculture spokesperson in Westminster, Ann Davies MP, who is a dairy farmer herself, pointed out that the farming sector is very different in Wales compared to England.

79 per cent of all land in Wales is classed as Less Favoured Area (LFA) - areas where geographic, soil or climatic conditions constrain productivity and make farming more difficult. In Wales this reflects the mountainous terrain, steep slopes on upland farms and high rainfall.

Ms Davies pointed out that the average income upland sheep and beef farms in 2022-23 fell to £18,600, a drop of 33% compared to the previous year.

During the Budget, it was announced that the 100% rate tax relief will come to an end for businesses and land worth over £1 million in the agricultural sector from April 2026. The current 100% rate of relief will continue for combined agricultural and business under £1 million, but for assets over £1 million, inheritance tax will apply with 50% relief, at an effective rate of 20%.

Both the National Union of Farmers and the Farmers Union of Wales have said that this change is likely to affect a majority of Welsh family farms.

Speaking during an Urgent Question in the House of Commons, Ann Davies MP said: “As a tenant dairy farmer myself and chair of the Farmer Union of Wales (FUW) in Carmarthenshire, perhaps I understand this more than anybody else in this chamber.

“The Government is trying to portray farming as an industry of super-wealthy landowners and that’s simply not the case in Wales, let me tell you.

“Welsh upland farmers in mountainous and hilly areas have an average annual income of £18,600. Yes, you heard that correctly, £18,600, which is far below the national living wage, for hours which are way beyond your average 40-hour week.

“What assessment has the minister made of the impact of the changes to Agricultural Property Relief in Wales, where wages for farmers are so low?”

The Minister for Food Security and Rural Affairs, Daniel Zeichner MP, responded: “I am grateful to the honourable lady. She’s absolutely right; farming is very tough right across the country, and it’s very difficult in Wales. It is a devolved issue so I won’t comment on specific schemes in Wales but I would point her back to the Treasury figures which show the number of people who make claims for agricultural property relief and it is relatively few, and I would say it’s probably relatively few in Wales.”

Following the session, Ann Davies MP added: “That was a poor response from the Minister, which sadly shows just how out of touch Labour is with the real struggles of Welsh farmers.”

NFU members are to hold a protest in London on Tuesday, 19 November against the changes announced in the budget.