The view from the Chair

The harvest ‘up north’ seemed to pass quicker than usual with the yields being surprisingly good overall. Unfortunately, I know that yields have been underwhelming in other parts of the UK. Grain prices are in the doldrums, with many farmers being offered prices which will not cover their cost of production. Other events, such as the closure of the Vivergo plant in Hull, have added further downward pressure on wheat prices.

From the number of machinery dispersal sales being advertised in the farming press, it is clear that many farming businesses are taking action to restructure, or cease, their businesses. It will be interesting to see what, if any, impact this will have on land prices. This is explored further in ‘Farmland values – where are they going?'

At the end of July, we saw the publication of the draft IHT legislation on reforms to APR/BPR, which will take effect from April 2026. Sadly, despite significant lobbying by various parties, including farming groups and professionals, there was no softening of the legislation. There was hope that there may be some ‘tweaks’ to the proposals, such as a delay to the legislation commencement date, an exemption for the ‘older’ farmer, and the £1m allowance being transferable between spouses, for example. ‘IHT reforms – details announced’ provides further commentary on this.

In August, CenTax published a policy report, ‘The Impact of Changes to Inheritance Tax on Farm Estates’, which is an interesting read and provides an independent analysis of the planned reform to IHT and its impact. It also explores alternative options to the proposed reforms to APR/BPR, which do have merit.

I am sure the date of the next Budget is now in your diary. With media speculation in respect of the potential tax rises already being rife, it is certainly going to be a challenge to navigate clients through the coming months and beyond. As IHT planning firmly remains a priority for farming businesses, ‘SDLT and farming’ provides an excellent summary of the SDLT implications when transferring land and property, which can often be overlooked.

The planning for our Farming & Rural Business Conference 2025 is now in its final stages. We have secured some excellent speakers to update you on the latest challenges and opportunities facing the sector. We will be joined by Victoria Atkins MP (Conservative, Shadow Secretary of State for Environment, Food and Rural Affairs) and Tim Farron MP (Liberal Democrat Spokesperson, Environment, Food and Rural Affairs), who will give their thoughts on the current government's agricultural policies and future impact on rural communities. I do hope you can join us on 25 September.