Land Agent Update January 2025

Inheritance Tax Update.

There is time to assess the impact of the upcoming changes to Agricultural Property and Business Property relief.  Many of our clients are seeking advice from their accountants which we applaud and recommend to all those who wish to be prepared. We are receiving instructions to value land and buildings from other professional advisors where value is being transferred to existing or new partners of the ownership business.

Farm Subsidy

If you don't plan to enter the Sustainable Farming Scheme, the value of your Basic Payment Scheme will gradually decrease starting from the 2026 claim year. We are expecting to receive 100% BPS claim in 2025, matching the 2024 payment, followed by a reduction to 80% value in 2026 and then reducing by 20% each year until 2029 as the final year of BPS.  

We would direct those interested in the new scheme to read the updated scheme outline in November 2024. We hope for final details from Welsh Government in good time prior to its introduction in January 2026, including payment rates. As a quick summary of the recent changes:

Removal of the 10% tree cover rule and replaced by a requirement to produce a tree planting and hedgerow creation opportunity plan.

Fewer number of Universal (mandatory) Actions: Benchmarking, Continuous Personal Development, Soil Health Planning, Integrated Pest Management, Habitat Maintenance, Create Temporary Habitat on improved land, Designated Site Management Plans, Hedgerow Management, Woodland Maintenance, Tree Planting and Hedgerow Creation opportunity plan, Historic Environment, Animal Health and Welfare).

10% of the farm is to be managed as habitat - referred to as “semi natural habitat”. Welsh Government will include all habitats such as species rich grasslands, ponds and established broadleaf woodland. We have identified grass seed mixes approved under the SFI scheme in England, in case there is a similar approach by the Welsh Government.

Buoyant livestock prices

Prices for all age and weight classes are increasing in livestock marts across the UK.   Beef deadweight heading to £6, Lamb deadweight also rising quickly. Both having an impact on liveweight prices. How long can this continue? We must produce more animals or prices for fattening and finishing stock will continue to rise exponentially. To protect food supply, Welsh Government should look to Scotland for a Suckler beef support scheme payment.