Farmlay's managing director shares mixed feelings about government proposals
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An Aberdeenshire egg producer has expressed cautious optimism regarding some elements of the UK Government’s recently announced “new deal for farmers.” Iain Chapman, managing director of Farmlay, highlighted several positive aspects from the speech delivered by Environment, Food and Rural Affairs Secretary Steve Reed at the Oxford Farming Conference (OFC) last month.
However, Chapman remains hesitant to fully endorse the proposals due to significant concerns surrounding inheritance tax (IHT) reforms that could impact the farming industry.
Positive aspects of the new deal
Chapman acknowledged that certain initiatives outlined by Mr. Reed could greatly benefit the agricultural sector.
For instance, he noted the potential for improved access to public service catering contracts, a long-standing request from farmers. “These would all be great news and – in some cases, such as improving access to public service catering contracts – something the industry has been banging on about for years,” Chapman stated. This sentiment reflects a broader desire within the farming community for more equitable opportunities in public procurement.
Concerns over inheritance tax reforms
Despite these positive notes, Chapman’s enthusiasm is tempered by the looming changes to inheritance tax that he believes could stifle growth within the farming sector. “My initial enthusiasm will be kept in check by the proposed farm IHT changes. The government’s plans will stifle all farming businesses from expanding,” he warned. This concern resonates with many farmers who are navigating the complexities of succession planning and the financial implications of potential tax liabilities.
Farmlay’s legacy and future
Farmlay, Scotland’s second-largest egg producer, operates nearly 3,000 acres of land near Strichen. Chapman reflected on the legacy of his family’s farming journey, stating, “My dad started out at 15 on his parents’ 130-acre farm.” He emphasized the ambitious dreams of his father, who aspired to own 100,000 hens and 1,000 acres of farmland. Today, Farmlay manages over 450,000 hens, with an additional 550,000 under contract farming arrangements. Chapman expressed concern that the proposed IHT changes could hinder similar growth trajectories for future generations of farmers.
Looking ahead
While Chapman is hopeful about some aspects of Mr. Reed’s vision, he remains skeptical about the feasibility of certain proposals, particularly in Scotland. He noted that while plans to facilitate farmers selling surplus energy from renewable sources will include Scotland, other initiatives may not be as accessible. “I am unsure how this would work, so will be following developments closely,” he remarked. The mixed reactions from industry leaders like Chapman underscore the complexities and challenges facing the agricultural sector as it navigates new policies and economic realities.
