Farming in Wales in 2025: Challenges and Opportunities

Welsh Affairs Committee Open Inquiry
Opened: 10 Mar 2025 Parliament page
Wales has a long tradition of farming, and the sector is integral to the Welsh economy. In 2022, agriculture, fishing and forestry accounted for 1.8% of total employment in Wales and over 90% of the land area of Wales is utilised for farming. Our predecessor Committee reported that in 2020, … Read more
8 Recommendations
17 Conclusions
2 Reports
2 Oral sessions
11 Letters
2 Events
Activity timeline 18 events
25 Mar
2026
Correspondence
25 Mar
2026
Correspondence
11 Mar
2026
Correspondence
30 Jan
2026
Report published
7 Jan
2026
Correspondence
12 Nov
2025
Report published
12 Nov
2025
Report published
4 Sep
2025
Correspondence
17 Jul
2025
Correspondence
17 Jul
2025
Correspondence
17 Jul
2025
Correspondence
17 Jul
2025
Correspondence
Oral evidence sessions 2 sessions
16 Jul 2025
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Oral evidence
Ceri Morgan CBE · Department for Environment, Food and Rural Affairs Daniel Zeichner MP · Department for Environment, Food and Rural Affairs Tessa Jones · Department for Environment, Food and Rural Affairs
4 Jun 2025
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Oral evidence
Aled Jones · National Farmers Union Cymru Dominic Hampson-Smith · Wales Young Farmers Clubs Gareth Parry · Farmers’ Union of Wales (FUW)
Recommendations & Conclusions
3 results
Clear
4 Conclusion Accepted in Part
2nd Report - Farming in Wales in 2…
Farm valuation-based IHT impact assessments are limited and potentially misleading.
Impact Assessments based on farm valuations may offer a general indication of how many farms could potentially exceed the £1 million Inheritance Tax (IHT) threshold, however such assessments are limited. Without access to detailed information on individual farm circumstances, such … Read more
Government Response
The government acknowledges concerns by increasing the 100% relief allowance for agricultural property relief from £1 million to £2.5 million, allowing couples to pass on up to £5 million tax-free, and refers to a published note detailing the reforms.
Wales Office
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6 Conclusion Accepted in Part
2nd Report - Farming in Wales in 2…
Policy change creates disproportionate impact on elderly and terminally ill Welsh farmers.
We are also concerned that the change in policy may have a disproportionate impact on elderly farmers or those with terminal illness who have arranged their affairs on the basis that their estates would not be subject to IHT, and … Read more
Government Response
The government acknowledges concerns by increasing the 100% relief allowance for agricultural property relief from £1 million to £2.5 million, allowing couples to pass on up to £5 million tax-free, following feedback from the farming community.
Wales Office
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15 Recommendation Accepted in Part
2nd Report - Farming in Wales in 2…
Intensify efforts to establish UK-EU SPS zone and publish a roadmap by May 2026.
The UK Government must intensify efforts to fully establish an SPS zone with the EU, as a key step towards reducing trade friction for Welsh agricultural exports. We call on the Government to publish a roadmap for how they plan … Read more
Government Response
The government states it is committed to working with the EU to advance an SPS agreement, describing it as a central element of their work to reduce agri-food trade friction and cut costs. However, the response does not commit to publishing a roadmap for how they plan to establish the SPS zone by May 2026.
Wales Office
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Government Response AI assessment · 23 of 8 classified
Accepted 6
Accepted in Part 3
Acknowledged 8
Not Addressed 2
Rejected 4
Total 8 recs + 17 conclusions
Correspondence 11 letters
25 Mar 2026 Correspondence to and from Department of Business and Trade, relating to the Government response to the Farming in Wales report, dated 3 February and 13 March 2026
Parliament page
25 Mar 2026 Correspondence to and from the Home Office, relating to withdrawal of the visa concession for temporary employment as sheep shearers, dated 2 March and 13 March 2026
Parliament page
11 Mar 2026 Correspondence to and from HM Treasury, relating to Farming in Wales in 2025, dated 3 and 25 February
Parliament page
7 Jan 2026 Correspondence from the Department for Environment, Food and Rural Affairs relating to reforms of Agricultural Property Relief and Business Property Relief, dated 23 December.
Parliament page
4 Sep 2025 Correspondence from the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs dated 18 August 2025 relating to Farming in Wales in 2025: Challenges and Opportunities
Parliament page
17 Jul 2025 Correspondence from the Wales Young Farmers Clubs to the Chair relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from the Farmers’ Union of Wales to the Chair dated 26 June 2025 relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from the Chair to NFU Cymru dated 9 June 2025 relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from the Chair to the Wales Young Farmers Clubs dated 9 June 2025 relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from NFU Cymru to the Chair dated 26 June 2025 relating to the 4 June evidence session
Parliament page
17 Jul 2025 Correspondence from the Chair to the Farmers’ Union of Wales dated 9 June 2025 relating to the 4 June evidence session
Parliament page