NFU Cymru will urge the UK government to reverse its 'misguided and ill thought-out' farm tax reforms at its annual conference later today.

The Welsh union says that many farmers are 'still shocked and concerned' at the 'family farm tax' changes announced in Labour’s new budget.

The reforms to the agricultural property relief (APR) and business property relief (BPR) have caused widespread apprehension right across the rural sector.

These changes were made despite assurances from Defra secretary Steve Reed, who said that APR would remain untouched in his party’s maiden budget and previous statements from senior figures within the party in the lead up to the general election.

NFU Cymru president Aled Jones slammed the changes, stating they are a “threat” to the “family farm structure.”

“There is no doubt that the decision by the chancellor will leave many farmers with neither the means, confidence nor the incentive to invest in the future of their business," he warned.

“The changes announced are not only a threat to our family farm structure and our tenanted sector but also to our nation’s food security.

"This from a government who, just a few short months ago, told us that ‘food security is national security’.

“Let me be clear: taxation on land for the production of food should not be allowed. This misguided and ill-thought-out tax reform must be reversed.”

Given the current challenges the industry is already facing Mr Jones has also called for the Welsh Government to provide clarity for the sector in its coming draft budget.

Last week’s budget confirmed that the funding for agriculture from 2024-25 has now been added to each devolved government’s block grant.

This means that around £340m should be forthcoming from the treasury block grant to Welsh Government for agricultural support.

Mr Jones said: "This very much puts the ball in the Welsh government’s court when it comes to setting its draft budget next month including, of course, the provision it makes for agricultural support.

"We now look to see the budget cuts made to the Rural Affairs budget last autumn reinstated in full, maintaining the BPS at current levels for 2025, alongside a range of interventions to support the industry.”