FFA calls for UK inheritance tax thresholds to be inflation-linked
Farmers for Action (FFA) is calling for the new UK inheritance tax thresholds to be inflation-linked into the future.
Prior to Christmas, the Chancellor of the Exchequer raised the UK tax-free threshold from £1 million to £2.5 million per person involved in a farming business.
This brings the overall threshold available up to £5 million for a family-owned business managed by a husband-and-wife team.
FFA representative William Taylor commented: “All of this is extremely positive.
“But it’s important that the tax-free thresholds are inflation-linked into the future.”
The FFA representative believes that farmers will protest again at Westminster on Monday, January 12 to tie in with the second reading of the inheritance tax bill.
He said: “This legislation stall has the potential to significant damage on the prospects for agriculture across the UK."
Meanwhile, the issue of falling farm gate prices across many sectors will be a 2026 priority for FFA.
“We are already seeing farmer protest taking place outside of supermarkets in the south of England," Taylor said.
“And these look set to gather momentum over the coming weeks.
“The reality is that farmers cannot make enough money to earn a living, never mind invest in the future of their businesses.”
“Government must legislate to deliver for primary producers, he added.
Food prices
Looking ahead the FFA representative sees the return of a mixed farming management model rising to the fore throughout the UK during the period ahead.
“This is the only way to bring greater levels of balance and overall sustainability to rural areas.
“But none of this can be achieved without farmers receiving fair prices for their produce. And this is not happening at the present time.”
Taylor highlighted that food prices are not necessarily in tandem with farm gate prices.
“Currently, increases in UK food prices are 100% down to the current Governments budgets and policies in tandem with corporate food retailers, corporate food wholesalers and corporate food processors profit taking - not farm gate price increases," he said.
“In the meantime, farmers are receiving the same price for grains and oil seeds as 40 years ago.
"The ex-farm milk prices is the same as it was back in 1987. And the same principle holds where potatoes are concerned."
According to the FFA representative, this is "a direct result of boom and bust policies at government level".
“The way forward requires farmers receiving prices that fully reflect their costs of production, generating a sustainable margin while also allowing for future business investment plans," Taylor said.
