Latest news with #SustainableFarmingIncentive
Yahoo
19-05-2025
- Business
- Yahoo
Some farmers can apply for SFI funding, Defra confirms
SOME farmers locked out of SFI mid-application can now access funding, Defra confirms. Farmers who were locked out of the Sustainable Farming Incentive (SFI) scheme despite being midway through an application will now be allowed to access support. Defra says those who saved their application but didn't submit within two months of the scheme's closure will be allowed to apply up to a maximum of £9,300 per application. It comes after the scheme was shut without any warning in March, sending shockwaves through the farming sector. Defra had said that 'SFI has reached its completion' so stopped accepting new applications with immediate effect, with a revised scheme to follow. With talk of a potential legal challenge to the lack of notice, the government now says the thousands of affected farmers will be supported. Farming Minister Daniel Zeichner said he is 'addressing the situation and have remade the decision to close the SFI 2024 scheme to new applications, without notice, on March 11'. TFA Chief Executive, George Dunn, while welcoming the relaxation said it was not perfect and would not help everyone. Country Land and Business Association (CLA) President Victoria Vyvyan said it was a 'limited' amount of money, but it did take a 'bit of the sting out of the suddenness of the closure'. NFU President Tom Bradshaw said: 'The government's abrupt and wholly unacceptable decision to close the scheme was always wrong. While it's good to see an acknowledgement that the decision to close the scheme was flawed, we are disappointed by the constraints imposed which will still leave many farmers unfairly disadvantaged. 'This is a really critical time for the farming industry, and while today's announcement falls short of what our members deserve, this issue highlights the NFU at its very best, working with its members to stand up for what we believe is right.'
Yahoo
16-05-2025
- Business
- Yahoo
Delay inheritance tax changes until 2027, ministers urged
The UK government has been urged to delay announcing its final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026, to come into effect in April 2027. A report by MPs on the cross-party environment, food and rural affairs (EFRA) committee has said that a pause in the implementation of these reforms 'would allow for better formulation of tax policy and provide the government with an opportunity to convey a positive long-term vision for farming". It would also protect vulnerable farmers who would have 'more time to seek appropriate professional advice", they said. MPs praised the government's commitments to backing British produce and supporting farmers, but are concerned that 'high-profile policies have been announced prior to the completion and publication of the strategies and reviews that Defra says will inform and guide its vision'. They have raised concerns that changes announced in the autumn budget last year were made without adequate consultation, impact assessment or affordability assessment. This means that the impact of the changes 'on family farms, land values, tenant farmers, food security and farmers in the devolved administrations' is 'disputed and unclear' with a risk of producing unintended consequences. The report added that the reforms threaten to affect the most vulnerable and that the government should consider alternative measures. Read more: UK economy grows 0.7% in first quarter of the year It comes as a new survey of UK farmers that found that before the budget 70% felt optimistic about the future of their rural businesses, but that number fell to 12% after the chancellor's statement. Meanwhile, 84% of farmers felt that their mental health has been affected, with farmers citing the Sustainable Farming Incentive (SFI) closure and changes to inheritance tax reliefs as the common areas creating concern. The committee supports the government's aim of reforming APR and BPR to close the loophole which allows wealthy investors to buy agricultural land to avoid inheritance tax, but notes that stakeholders and experts have proposed several alternative ways to reform these taxes so as to achieve this objective without harming small family farms, and asks the government to consult on these proposals before publishing its Finance Bill in 2026. The EFRA committee is calling on the government to publish its evaluation of and rationale for following or not following alternative policy measures presented by stakeholders such as the Institute for Fiscal Studies and the National Farmers Union (NFU). It also warned that the sudden closing of the SFI 'affected trust in the government' and 'left many farmers without the funding they expected and at risk of becoming unviable in the period before the next scheme is introduced'. The government has since announced it will allow SFI applications that were in progress within two months of 11 March to progress with restrictions. The committee is also urging for an alternative funding mechanism to be put in place no later than September 2025, to fill the gap in funding for those who missed out on the SFI 2024. MPs said the government should set out, in their response to this report, what the next iteration of SFI will look like and the date it will be open for applications. In January, Defra announced its plans to publish a 25-year Farming Roadmap. MPs say that in this, 'the government should urgently set out its vision for the farming sector, achieving food security and the future of the Farming and Countryside Programme'. The report says: 'The 25-year Farming Roadmap should bring together Defra farming policy and programmes into a single vision outlining how they will work together to achieve measurable outcomes for food security and the environment.' Alistair Carmichael MP and chair of the EFRA committee, said: 'The committee has taken its work extremely seriously in developing this report and in agreeing our findings. There is an opportunity here to rebuild trust and confidence in the farming sector and I hope that the government will take our recommendations seriously. Read more: Eurozone economic growth weaker than expected amid Trump's tariff turmoil 'The way in which the government has behaved over recent months has clearly negatively affected the confidence and wellbeing of farmers. Changes to APR and BPR in the autumn budget, the sudden closure of the Capital Grants scheme in November 2024, and the abrupt ending of SFI applications in March have all led farmers to feel that they cannot rely on the government to live up to its commitments. "The government, however, seems to be dismissing farmers' concerns and ignoring the strength of feeling evidenced in the months of protests that saw tractors converge on Westminster and up and down the country. 'We have seen that Defra's communications with farmers have been poor, with confusing and sometimes contradictory messaging. There has been a lack of adequate consultation. Policies affecting farmers have been announced without due consideration or explanation of their impact or their rationale. 'Farmers ought to be the essential element in the government's plans both to achieve food security and to restore and protect the environment. When they make decisions for their businesses, farmers have to plan for the long term — but the landscape they are operating in currently is unclear. Farmers urgently need clarity, certainty and advance notice of changes — they cannot be expected to rethink their businesses on a whim. It is essential that Defra focuses on rebuilding trust through good-faith communications with the sector.'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Delay inheritance tax changes until 2027, ministers urged
The UK government has been urged to delay announcing its final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026, to come into effect in April 2027. A report by the cross-party Environment, Food and Rural Affairs (EFRA) Committee has said that a pause in the implementation of these reforms 'would allow for better formulation of tax policy and provide the government with an opportunity to convey a positive long-term vision for farming.' It would also protect vulnerable farmers who would have 'more time to seek appropriate professional advice," they said. MPs praised the government's commitments to backing British produce and supporting farmers, but are concerned that 'high-profile policies have been announced prior to the completion and publication of the strategies and reviews that Defra says will inform and guide its vision.' They have raised concerns that changes announced in the autumn budget last year were made without adequate consultation, impact assessment or affordability assessment. This means that the impact of the changes 'on family farms, land values, tenant farmers, food security and farmers in the devolved administrations' is 'disputed and unclear' with a risk of producing unintended consequences. The report added that the reforms threaten to affect the most vulnerable and that the government should consider alternative measures. Read more: UK economy grows 0.7% in first quarter of the year It comes as a new survey of UK farmers that found that before the budget 70% felt optimistic about the future of their rural businesses, but that number fell to 12% after the chancellor's statement. Meanwhile, 84% of farmers felt that their mental health has been affected, with farmers citing the Sustainable Farming Incentive (SFI) closure and changes to inheritance tax reliefs as the common areas creating concern. The committee supports the government's aim of reforming APR and BPR to close the loophole which allows wealthy investors to buy agricultural land to avoid inheritance tax, but notes that stakeholders and experts have proposed several alternative ways to reform these taxes so as to achieve this objective without harming small family farms, and asks the government to consult on these proposals before publishing its Finance Bill in 2026. The EFRA committee is calling on the government to publish its evaluation of and rationale for following or not following alternative policy measures presented by stakeholders such as the Institute for Fiscal Studies and the National Farmers Union (NFU). It also warned that the sudden closing of the SFI 'affected trust in the government' and 'left many farmers without the funding they expected and at risk of becoming unviable in the period before the next scheme is introduced'. The government has since announced it will allow SFI applications that were in progress within two months of 11 March to progress with restrictions. The committee is also urging for an alternative funding mechanism to be put in place no later than September 2025, to fill the gap in funding for those who missed out on the SFI 2024. MPs said the government should set out, in their response to this report, what the next iteration of SFI will look like and the date it will be open for applications. In January, Defra announced its plans to publish a 25-year Farming Roadmap. MPs say that in this, 'the government should urgently set out its vision for the farming sector, achieving food security and the future of the Farming and Countryside Programme.' The report says: 'The 25-year Farming Roadmap should bring together Defra farming policy and programmes into a single vision outlining how they will work together to achieve measurable outcomes for food security and the environment.' Alistair Carmichael MP and chair of the EFRA committee, said: 'The Committee has taken its work extremely seriously in developing this report and in agreeing our findings. There is an opportunity here to rebuild trust and confidence in the farming sector and I hope that the government will take our recommendations seriously. Read more: Eurozone economic growth weaker than expected amid Trump's tariff turmoil 'The way in which the government has behaved over recent months has clearly negatively affected the confidence and wellbeing of farmers. Changes to APR and BPR in the autumn budget, the sudden closure of the Capital Grants scheme in November 2024, and the abrupt ending of SFI applications in March have all led farmers to feel that they cannot rely on the government to live up to its commitments. "The government, however, seems to be dismissing farmers' concerns and ignoring the strength of feeling evidenced in the months of protests that saw tractors converge on Westminster and up and down the country. 'We have seen that Defra's communications with farmers have been poor, with confusing and sometimes contradictory messaging. There has been a lack of adequate consultation. Policies affecting farmers have been announced without due consideration or explanation of their impact or their rationale. 'Farmers ought to be the essential element in the government's plans both to achieve food security and to restore and protect the environment. When they make decisions for their businesses, farmers have to plan for the long term — but the landscape they are operating in currently is unclear. Farmers urgently need clarity, certainty and advance notice of changes — they cannot be expected to rethink their businesses on a whim. It is essential that Defra focuses on rebuilding trust through good-faith communications with the sector.'
Yahoo
16-05-2025
- Business
- Yahoo
MPs call for year-long delay to farm inheritance tax
Farm inheritance tax changes should be delayed by a year and alternative schemes that will not harm small family businesses need to be properly considered, a committee of MPs has warned. Government plans to tax inherited agricultural assets worth more than £1m at a rate of 20% – half the usual rate – saw protests across the UK after they were announced in the Autumn Budget. In a report released on Friday, the Environment, Food and Rural Affairs (Efra) Committee said the changes were made without "adequate consultation, impact assessment or affordability assessment". The government said its inheritance tax reforms were "vital" and its commitment to farmers was "steadfast". Efra's report said the tax reforms "threaten to affect the most vulnerable" but delaying the implementation of the policy until April 2027 would give those farmers more time to seek "appropriate professional advice". National Farmers' Union (NFU) president Tom Bradshaw said a delay "doesn't take the terrible pressure off older farmers". He said the policy remained "fundamentally unfit, destructive, badly constructed and must be changed". The government says the changes will only affect the wealthiest 500 farms each year, but the NFU and the Country Land and Business Association (CLA) estimate that up to 70,000 farms could be affected overall. The committee also warned that the government's sudden closure of the Sustainable Farming Incentive (SFI) environmental payments scheme "affected trust in the government" and left many farmers "at risk of becoming unviable". When the SFI scheme, which more than 50,000 farm businesses are signed up to, was closed in March, the NFU described it as another "shattering blow" to farmers. The Department for Environment, Food and Rural Affairs (Defra) has since announced it will allow SFI applications that were in progress within two months of its closure. But the committee said that lessons should be learned and that "a restoration of trust is urgently required". Efra committee chairman Alistair Carmichael said the confidence and wellbeing of farmers had been affected negatively. "The government, however, seems to be dismissing farmers' concerns and ignoring the strength of feeling evidenced in the months of protests that saw tractors converge on Westminster and up and down the country," he added. The CLA, which represents 28,000 farmers and rural businesses, urged the government to rethink its "current disastrous policy" on inheritance tax. It said the government should consider an alternative "clawback" scheme, under which 100% agricultural and business property reliefs would remain but inheritance tax would be applied to assets if sold within a certain period of time post-death, payable out of the proceeds of the sale. CLA president Victoria Vyvyan said the "clawback" proposal would limit the damage to family businesses while targeting "those who have bought land to shelter wealth for short-term gain". "The government has dug itself into a deep hole by targeting family farms and businesses, and must now pause, listen and consult," she said. But a government spokesman said that under its changes three quarters of estates would continue to pay no inheritance tax at all, while the remaining quarter would "pay half the inheritance tax that most people pay". He added that payments could be spread over 10 years, interest-free. Details of a new SFI scheme will be announced after the upcoming spending review. Green scheme closure a 'shattering blow' to farms, says union Farm inheritance tax protesters target Reed conference speech Tractor protest as minister pledges farmers 'new deal'
Agriland
07-05-2025
- Business
- Agriland
AHDB publishes latest crop development report
The Agricultural and Horticultural Development Board (AHDB) has just published its latest crop development report for the UK and it makes pretty good reading for growers. This has been one of the best recent years for spring planting; drilling of spring wheat, barley, and oats was completed during March and April. However, challenges have been noted with spring oilseed rape drilling, and areas not yet planted are likely to be switched to other crops. Crop development report Overall, disease pressure for all crops remains low. However, the dry conditions are beginning to affect crop development. Some spring barley and spring oat crops also needed to be re-drilled in some areas. Meanwhile, winter oilseed rape has been replaced with spring linseed in some areas of severe pigeon damage. From March to early April, conditions were dry, with UK average rainfall below the long-term average. Eastern England had just 6mm of rain in March, making it extremely dry. April rain By mid-April, rainfall returned, although there were substantial regional differences with the south-west experiencing higher levels, while the west midlands saw comparatively little. Prior to the mid-April rainfall, crop growth had stalled. However, since the rainfall, crops that received rain have begun to develop, and some winter barley is now well ahead of its usual growth stage. In the west midlands, following 10-20mm of rainfall, nitrogen is now being taken up and crops are showing signs of recovery. In the far north of north-east England, conditions remain very dry with no recent rainfall and crops are showing signs of stress. Meanwhile, in the east midlands, barley has been irrigated where water resources are available. Parts of Scotland also received less than 10mm in April. It is also worth noting that the withdrawal of the Sustainable Farming Incentive (SFI) in England to new applicants has led to an increase in the retention of very poor crops, according to the AHDB. These crops would otherwise have been taken off production and the land entered into the scheme. In contrast, tillage farmers across the island of Ireland have enjoyed a favourable spring so far, with approximately 60mm of rainfall recorded during the second fortnight of April. Disease levels within Irish crops remain low. However, the growing threat of yellow rust in many parts of the island is giving considerable cause for concern, as is the first confirmation of glyphosate resistance within an Italian ryegrass population.
