If you were in my office where I am sat writing this column, you would see shelves full of files and various paperwork, many are related to nearly eight years’ worth of SFS design, consultations and responses with volumes of board minutes from all sectors.
Deliberations on water quality regulations must rank second in terms of shelf space, followed closely by TB.
There is one neat pile on top of the filing cabinet which contains all the editions of Farming Wales from over the last four years since being elected as President. I would be lying to say I was not a little emotional writing my last contribution, the last of my monthly ramblings.
Inheritance Tax
"We are still opposed to the principal of taxing the transfer of business assets, but had we rejected the offer and continued the fight, to then lose, we would have lost £600,000. Rejecting the offer would also potentially have led to us losing the support of sympathetic Labour MPs. If anyone disagrees with this approach and is prepared to gamble away the potential tax savings for thousands of other Welsh farmers, they are free to their own opinion."
Aled Jones on the IHT announcement
Over the last 14 months it has been difficult not to mention IHT in any edition. I’m sure many of you just like myself have struggled with worry, stress and sleepless nights on how to cope with the financial impact of inheritance tax. All across Wales, farming families have spent countless hours discussing difficult decisions and most likely to have also incurred considerable professional fees.
Subscribing as we do to NFU Cymru and the vision of being ‘Stronger Together’, the lobbying engine of NFU Cymru and NFU has been in overdrive before and after the devastating 30-minute address by the Chancellor in her October 2024 Budget. Never has there been such an intensity of lobbying on a singular matter in over 20 years of being involved with NFU Cymru.
'No IHT' display
There have been a number of notable events that will be seared in the memory for many years: addressing thousands of farmers gathered in Whitehall who came and met with over 220 individual MPs in a single day, presenting a petition into Number 10 Downing Street with 270,000 signatures, meeting Treasury Ministers, giving evidence to Westminster Select Committees and countless hours of media interviews, not to mention the Royal Welsh Winter Fair where the simple message ‘NO IHT’ was made in the main grandstand before bursting out to sing our national anthem.
Large public gatherings do capture the media and their insatiable appetite for news but there is no doubt in my mind the most powerful and impactful lobbying has been the quiet, personal, raw conversations with politicians sitting at kitchen tables or standing on farmyards. The news that broke from Westminster on 23 December was the accumulation of an enormous amount of work by so many people. Thanks to all those who made the effort to write to MPs, to visit MPs, invite them onto your farms and to be interviewed on radio or in front of cameras sharing personal stories. We should always recognise the enormous contribution of our professional staff who truly are the technical components of a smooth-running powerful lobbying engine.
The very cruel disrespectful way IHT reforms dealt with the elderly and terminally ill was understood by some politicians and we must thank and acknowledge those who were prepared to make a stand on their convictions and abstain or vote against the government. This small group of MPs were only the tip of the iceberg, as we knew many others were uncomfortable but unprepared to defy the government. We must acknowledge the Welsh Affairs Select Committee chaired by Ruth Jones MP, whose report made very strongly worded recommendations calling for the reforms to be delayed and a specific Welsh impact assessment to be undertaken.
Notable announcements on IHT
Between the budget on 26 November and 23 December there were notable events that must be put on record.
Firstly, the budget announcement allowing spousal transfers of relief and for the reliefs of deceased spouses and partners to be allowed. Secondly, the commons vote on IHT where nearly 40 labour MPs either abstained or voted against the government. Thirdly, the PM appeared before the House of Commons’ Liaison Committee and endured extremely pointed questions on IHT. Fourthly and finally, NFU president Tom Bradshaw was invited into Downing Street to meet the Prime Minister. It was this meeting which eventually led to the announcement of increasing the thresholds from £1 million to £2.5 million per spouse, index linked.
To overturn IHT reform would have needed 80 MPs to vote against the government and we were unlikely to get this number. The spousal transfer and the increased threshold will lead up to a potential £600,000 reduction in tax liability.
Opposed to the principal of the tax
We are still opposed to the principal of taxing the transfer of business assets, but had we rejected the offer and continued the fight, to then lose, we would have lost £600,000. Rejecting the offer would also potentially have led to us losing the support of sympathetic Labour MPs. If anyone disagrees with this approach and is prepared to gamble away the potential tax savings for thousands of other Welsh farmers, they are free to their own opinion. As I said, we are opposed to the principal, but ahead of the next General Election we will seek manifesto commitments from political parties to reverse or properly reform IHT as recommended by the CENTAX report.
Sense of relief
Judging from the messages received since the announcement there has been an overwhelming sense of relief amongst so many Welsh families. That sigh of relief came from the whole rural community and allied rural businesses concerned of the knock-on effects. There was a little more joy around this Christmas but tempered by the agony and worry experienced over the last 14 months, many wounds will take time to heal. However, wounds will heal and time will tell if discussions on family succession will not have been wasted. The overwhelming message which I constantly try to share is that we stand together united, supporting each other as members of NFU Cymru. Please do not hold back in advocating farmers to become members, I will certainly not.
Sustainable Farming Scheme
Signing off as NFU Cymru President, I cannot but say a few words on SFS. It will be 10 years in June since the EU Referendum result, it was a time where slogans were brandished around, ‘BREXIT is BREXIT’, ‘Bonfire of regulations’, ‘Get BREXIT done’, to name just a few, but behind the slogans there was very little substance.
Knowing BREXIT would lead to the end of EU Cap support, NFU Cymru having consulted with members, was clear that a successor policy needed to underpin the rural economic stability. Through successive Welsh Government consultations, what was offered was essentially an environment scheme neglecting economic stability and the investment in productivity. With a clear vision we held our lines and what we have now is not perfect but substantially better than where we started from. Farmers can look upon it as an opportunity or otherwise, but I sincerely hope the scheme will evolve and improve. Welsh farmers do produce food to high standards, but the markets are increasingly demanding the authentication of these credentials. The SFS does present opportunities for Welsh farming if the scheme evolves where optional / collaborative actions are designed to promote investment and productivity.
Judging the NFU Cymru photography competition has been one of the joys of Presidency, picking the winner each year has been a mighty challenge. I like photos that tell a story, that make people think. Our winning photo in 2025, taken by Colin Evans, is a typical scene on many Welsh farms in early spring. Any discerning farmer will notice the weather is cold, pastures bare, lambs growing and pulling on their mothers who are hungry for feed.
The farmer ponders rising feed costs and what the market returns may be, he might be worrying on IHT and family issues, implications of SFS and government regulations. The photo was a fitting gift that I presented to the Deputy First Minister as a continual reminder to those in power creating policies impacting farmers, of the trials and tribulations faced by working people. You can see in the photo the sun is rising, blue sky appears, seasons will come and farmers will work accordingly, they plan, sow, tend and reap so that the multitudes are fed.
Final farewell
So, as the sun sets on my term of office can I sincerely thank you as members for all the support and friendships made in every corner of Wales. It has been a real pleasure working with Abi Reader and all other officeholders. Can I wish the new incoming Deputy President my very best wishes. Our professional staff are real stars, I have so much respect and owe my gratitude to all of them so ably lead by John Mercer, they are a small but dedicated team. I thank my wife Eilir for her forbearance and my son Osian who has managed the farm so well, I might be without a job!
Mi wn mae rhyw bwt byr yn Gymraeg sy wedi bod ar ddiwedd pob colofn ond credwch fi na fyddaf byth yn bradychu'r iaith na'i diwylliant. Caraf ddiolch am bob cefnogaeth 'rwyf wedi dderbyn dros yr wyth mlynedd dwethaf.
Gymru!
Dy asgwrn cefn yw cefn gwlad,
O'i dorri ni wnei gerdded.
- Gwilym Rhys Jones.
Llawer o ddiolch,
Aled