Ms McIlveen said,
Those farms contribute significantly to our agricultural output, ensuring the continuation of local food production, maintaining rural landscapes and preserving traditional family practices. To undermine their sustainability is to risk losing not only the future of our agriculture but the livelihoods of countless families who have invested their lives in that vital industry.
The changes introduced in the Chancellor's autumn 2024 Budget have the potential to deeply affect the long-term viability of family-run farms throughout our country.
Just last week, the Northern Ireland Rural Valuers Association (NIRVA), in conjunction with the Central Association of Agricultural Valuers (CAAV), produced a report on the impact of the changes. It found that at least 6,000 Northern Irish farming taxpayers would be affected by the tax change over a generation. Northern Ireland farms will be more significantly impacted by the changes than farms in any other part of the United Kingdom. That is a result of high land values, the age demographic, greater prevalence of the sole-owner model and farming here being more livestock-based. Where there was a second owner, they were typically a spouse.
The analysis provided shows that using the UK Government's estimate of 500 farming taxpayers affected in the first year, Northern Ireland, on its own, would have 200 or 40% of the total that the UK Government expect for the whole of the UK.
The report broke down into real terms what farms would have to do to meet the additional burden. For example, a 67-head lowland suckler herd would need to increase in size by 90%, with an increase in the associated labour hours and costs and no improvements to the business. A 100-head dairy farm would need to increase by a further 41 dairy cows, again with increased hours and costs.
The report, identifying those trapped by the tax change, states:
"Those who are now elderly, terminally ill or single sole owners typically have least flexibility to use the options that, over a longer period, could mitigate the tax charge and protect the business."
The analysis showed an increase in land values from £15,000 to £21,000 per acre. That dramatic change raises the number of farms that will face financial difficulties under the new inheritance tax regime, pushing many family farms to the brink of collapse.
Despite the rallies, protests and debates, letters from the Executive and from other Chambers, we see no movement from the UK Government. It is essential that the issue is kept alive.
I appreciate that it is a Westminster issue and that inheritance tax changes are not in the gift of the Minister or the Executive. However, the Minister can do more to help the farmer. As I have said before — it is worth repeating — that means addressing policies that restrict development and betterment on farms; eradicating and preventing disease in livestock; and a workable future generations scheme to keep future generations in the sector.
It means supporting farms and farmers and recognising them for what they are: our primary industry, employing over 51,000 people and contributing £6 billion to the economy. They are the custodians of our countryside, so it means not using the farmer as the bogeyman when pushing an environmentalist agenda.