Standing with Farmers
The Government’s decision to make changes to farm inheritance tax (IHT) law has caused significant unease across the farming community. This has now been compounded by its surprise announcement of a sudden pause to the Sustainable Farming Incentive (SFI) scheme, which took immediate effect.
At Cornish Mutual, we wish to express our unwavering support for farmers during these uncertain and challenging times.
The proposed changes to inheritance tax (IHT) hold far-reaching implications for farming businesses, particularly their ability to plan for succession and secure long-term resilience. This highlights the vital importance of proactive succession and tax planning to safeguard the future of agricultural enterprises. Farmers, as stewards of our rural landscapes, deserve the stability to pass their legacy on to the next generation with confidence.
Equally, the abrupt decision to suspend the SFI scheme has heightened farmers' frustrations. The scheme forms a crucial component of the transition toward more sustainable practices that address biodiversity, climate change and food security. By also supporting the farming industry as it moves away from the Basic Payment Scheme (BPS) support, SFI was a key pillar for many farm businesses. The absence of a lead-in period to this change, and the implications for those already navigating the application process, leave some farmers without an essential funding stream until 2026. This places immense pressure on farming families, impeding their ability to adapt and plan for the future. What’s more, it potentially restricts the adaption of practices that enhance nature and improve the environment.
We are acutely aware that these pressures are adding to the growing stresses already faced by farmers. Health and wellbeing concerns within agriculture are particularly pronounced during periods of uncertainty, and we urge everyone in the rural community to come together and support one another. Now, more than ever, we need to acknowledge the vital role farmers play in our society and work collaboratively to ensure their voices are heard.
At Cornish Mutual, we remain steadfast in our commitment to working to protect the farming community. Our focus is on providing insurance products and supporting farmers in strengthening their businesses, safeguarding their livelihoods and maintaining confidence in the face of these challenges. Farming is the backbone of our rural economy, and together, we will continue to strive for a future in which it thrives.
More information about these changes can be found:
Agricultural Property Relief and Business Property Relief changes – IHT
SFI changes
Planning reforms