“2025 has closed with a sense of relief for many family farms across Wales as the UK government announced a significant change to Agricultural Property Relief and Business Property Relief, raising the threshold from £1m to £2.5m.This change alongside the announcement by the Chancellor in last month’s budget to allow spousal transfer will mean that for many up to £5m in qualifying agricultural or business assets will be able to be passed on to the next generation before paying inheritance tax.
“Over the last 14 months, NFU Cymru has been tireless in its efforts to amend the original proposals, with a consistent drumbeat of high-profile campaigning, from delivering a petition with over 270,000 signatures to No 10 Downing Street to the ‘NO IHT’ mosaic display message on the eve of the Autumn Budget at this year’s Winter Fair.
“The UK Government’s announcement will be welcome news to Welsh family farms. This was a crucial change for many, ensuring that the year would end not on the backfoot but with a clearer path ahead as families come together to welcome the new year.
Sustainable Farming Scheme (SFS)
“In July, Welsh Government published detailed information and payment rates for the Sustainable Farming Scheme (SFS). In the past few days Welsh Government has published the guidance documents for the scheme, eight years in the making, that will become a reality from the 1st January 2026.
“It is important to remember the changes that have been secured since Welsh Government published its initial proposals in the July 2018 Brexit and our Land consultation. Over the past 18 months our work within the Roundtable and the various sub-groups has helped secure positive changes to the SFS including the removal of the 10% tree cover requirements and a reduction in the number of universal actions from 17 to 12.
“Crucially the budget for farming has been maintained at £340 million and the introduction of a social value payment within the universal layer of the scheme recognises the wider benefits Welsh farming provides to society, ensuring the SFS can provide much needed stability to our family farms.
“Whilst NFU Cymru is supportive of the general framework of the SFS, there remains much work to do. My message to this government and the next is that there must be a commitment to continue to evolve the scheme so that it can support a productive, progressive and profitable farming sector in Wales.
Politics in Wales
“2026 will be a seismic year for politics in Wales with the Senedd increasing to 96 members elected from 16 brand new constituencies, under a new voting system.
"Last June, NFU Cymru published its manifesto Welsh Farming: Growing Forward with a clear set of priorities for our next government – a comprehensive farm to fork food strategy; a ring-fenced multi annual budget to support the sustainable growth of Welsh food and farming; a comprehensive TB eradication strategy and an independent review of regulation.
"These are just some of the policy areas we believe the next government must implement to support Welsh farmers in producing world-leading climate friendly food within an environment and landscape where our nature is thriving.
“There is no doubt that 2025 has been a challenging year dealing with difficult conversations caused by the then-proposed changes to IHT, uncertainty over the SFS, the constant threat of animal disease - whether that be bovine TB, Bluetongue or Avian Influenza - and the vagaries of the weather.
"The four yearly review of the Control of Agricultural Pollution Regulations simply failed to reflect the sheer desperation of farmers in Wales in grappling with the impracticality and complexity of the Regulations. But as I travel around the country in my role as NFU Cymru President every day, I am amazed by the ambition and ‘can do’ attitude of our farming families and their desire to feed the nation whilst striving to leave the farm in a better place for the next generation to take the reins.
“As we enter a year of political change, I call on politicians of all parties to work with us to help provide the policy and regulatory conditions to ensure that our farming families the length and breadth of Wales can continue to do what they do best: producing world leading healthy and nutritious food whilst delivering for our environment, climate, economy our culture and language.