he concerns of farmers and agricultural unions regarding the change to the inheritance tax for agricultural assets were expressed on the floor of the Senedd today (Wednesday, 5 March), as part of a debate led by Llŷr Gruffydd MS on behalf of Plaid Cymru.
The change to inheritance tax - which has received the nickname 'Family Farm Tax' - will mean that 20% of the value of a farm over a million pounds will be due in tax.
According to Plaid Cymru, it is unclear what effect this will have on farms and rural communities, as no complete economic impact assessment has been carried out on it. While the UK Government claims that only 27% of farms will be affected by the tax, NFU Cymru argues that the true figure is much higher, at 75%.
As part of the debate, Cefin Campbell, Plaid Cymru Member of the Senedd for Mid and West Wales, said:
"Agriculture is one of the cornerstones of the economy and indeed of society in Mid and West Wales. Our family farms support a way of life that has existed for centuries, support community life in all its diversity and of course contribute heavily to the local economy.
"The fundamental problem is that we have little idea what the implications of this policy change will be, as no thorough economic assessment of its impact has been carried out. Unfortunately, this comes as part of a pattern that farmers in my region feel: that there is a lack of understanding in the corridors of power over the reality they face.
"This situation is not good enough, and the impact of policies like this one, which has the risk of undermining so many of our farms and communities, must be fully assessed before being introduced."
The President of NFU Wales, Mr Aled Jones, added:
"If the UK Government's proposed changes to inheritance tax go ahead, then they will have an extremely adverse effect on family farms in Wales and all the businesses that in turn depend on them.
"By placing unsustainable tax obligations on the backbone of our food system, the UK Government risks dismantling a vital sector and emptying our rural communities.
"I therefore very much welcome the fact that Plaid Cymru has secured this debate, it is essential that the effects of these proposals on Wales are heard and considered thoroughly here in the Senedd."