Steve Reed claims farms failing has nothing to do with tax changes

In the United Kingdom, Environment Secretary Steve Reed addressed concerns from farmers during his speech at the Oxford Farming Conference. He acknowledged the stressful reactions of farmers due to recent tax rises, specifically regarding inheritance taxes imposed on agricultural businesses valued over £1 million, as well as a swift decrease in EU-era subsidies. These changes were part of measures unveiled in the last year’s budget aimed at transitioning towards environmental payments. Farmers have expressed significant distress, with many protesting outside the event, indicating their dissatisfaction with the government’s new policies. Reed emphasized that the financial difficulties faced by many farms were not a direct result of these new inheritance tax increases but stemmed from ongoing issues within the agricultural sector, leading to a lack of profitability. He pointed out that numerous farms were already struggling and had been suffering before the recent budget adjustments. However, he conceded that the fall out from these and future reforms could pose challenges for farmers as the government’s changes unfold. To address the financial challenges and support the agricultural community, Reed announced several proposals aimed at enhancing farm profitability. His strategies included facilitating the sale of surplus solar energy back to the grid, easing regulations for constructing necessary infrastructure, and boosting the procurement of British food products by public institutions. Reed’s push to reset relations with the farming community comes at a time when many farmers are also facing adverse weather, disappointing supermarket sale profits, and complications arising from changes in trading conditions due to Brexit. Tom Bradshaw, president of the National Farmers' Union, noted that while Reed’s apology was a welcome recognition of the farmers’ situation, there remained doubts about the current focus on diversification over the immediate need for profitable food production. Farmers were calling for urgent consultations regarding inheritance tax changes, prompt disbursement of payments for environmental schemes, and better functioning markets. The timeline for these proposed solutions remains unclear as Bradshaw emphasized that the agricultural sector is precariously situated today, necessitating immediate support rather than long-term solutions.