Home / Sources / Select Committees / Welsh Affairs Committee / Farming in Wales in 2025: Challenges an…
Index live · Last sync 22 May 2026
Select Committee · Welsh Affairs Committee

Farming in Wales in 2025: Challenges and Opportunities

Status: Open Opened: 10 Mar 2025 8 recommendations 17 conclusions 2 reports

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, the gross output of agriculture …

Clear

Reports

2 reports
Title HC No. Published Items Response
2nd Report - Farming in Wales in 2025: Challenges and Oppor… HC 785 12 Nov 2025 25 Responded
Ffermio yng Nghymru yn 2025: Heriau a Chyfleoedd HC 785 12 Nov 2025 0 —

Recommendations & Conclusions

3 items
4 Conclusion 2nd Report - Farming in Wales in 2025: … Accepted in Part

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 as estate ownership structures, succession plans, and gifting arrangements, these …

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
6 Conclusion 2nd Report - Farming in Wales in 2025: … Accepted in Part

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 will not have an opportunity to change their succession arrangements …

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
15 Recommendation 2nd Report - Farming in Wales in 2025: … Accepted in Part

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 to establish an SPS zone between the UK and EU …

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 …
Wales Office

Oral evidence sessions

2 sessions
Date Witnesses
16 Jul 2025 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 View ↗
4 Jun 2025 Aled Jones · National Farmers Union Cymru, Dominic Hampson-Smith · Wales Young Farmers Clubs, Gareth Parry · Farmers’ Union of Wales (FUW) View ↗

Correspondence

11 letters
DateDirectionTitle
25 Mar 2026 — Correspondence to and from Department of Business and Trade, relating to the Go…
25 Mar 2026 — Correspondence to and from the Home Office, relating to withdrawal of the visa …
11 Mar 2026 — Correspondence to and from HM Treasury, relating to Farming in Wales in 2025, d…
7 Jan 2026 — Correspondence from the Department for Environment, Food and Rural Affairs rela…
4 Sep 2025 — Correspondence from the Deputy First Minister and Cabinet Secretary for Climate…
17 Jul 2025 — Correspondence from the Wales Young Farmers Clubs to the Chair relating to the …
17 Jul 2025 — Correspondence from the Farmers’ Union of Wales to the Chair dated 26 June 202…
17 Jul 2025 — Correspondence from the Chair to NFU Cymru dated 9 June 2025 relating to the 4 …
17 Jul 2025 — Correspondence from the Chair to the Wales Young Farmers Clubs dated 9 June 202…
17 Jul 2025 — Correspondence from NFU Cymru to the Chair dated 26 June 2025 relating to the 4…
17 Jul 2025 — Correspondence from the Chair to the Farmers’ Union of Wales dated 9 June 2025 …