An Aberdeenshire egg producer has welcomed some aspects of the UK Government’s “new deal for farmers”.
Farmlay managing director Iain Chapman picked out some positives from Environment, Food and Rural Affairs Secretary Steve Reed’s new vision for the sector.
But he stopped short of giving his wholehearted support to Mr Reed’s speech at last month’s Oxford Farming Conference (OFC).
This because he is unable to look past controversial changes to inheritance tax (IHT) hanging over the industry. He also fears some of Mr Reed’s ideas will never happen in Scotland.
What’s impressed Farmlay’s boss?
Mr Chapman picked out the following plus points from the minister’s grand vision.
- Making it easier for UK farmers to get business from selling into the £5 billion spent on public service catering contracts. This is an England-only policy at this stage
- Improving opportunities for farmers to make money from selling surplus energy back from solar panels and wind turbines; a UK-wide initiative
- New supply chain rules, ensuring contracts are set out clearly and that changes can only be made if agreed by all parties; also UK-wide
“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,” Farmlay’s boss said.
Inheritance tax plans ‘will stifle all farming businesses from expanding’
He added: “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.
“On a personal note, although we have started on succession we have not completed and I am – along with many thousands of others – worried about IHT impact if the worst was to happen to any generation of a family farm.”
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The Chapman family, whose Farmlay business is Scotland’s second largest egg producer, farm almost 3,000 acres of land near Strichen, in Aberdeenshire.
‘Dark cloud’ of inheritance tax
“My dad started out at 15 on his parents 130-acre farm,” Mr Chapman said, adding: “He had a dream of owning 100,000 hens and 1,000 acres of farmland. Farmlay as a business now owns more than 450,000 hens, with a further 550,000 owned by contract farmers.
“Although my father is an amazing man, it’s hard to imagine that sort of growth being possible if there had been the dark cloud of IHT hanging over him and other farmers.”
Reflecting on the aspects of Mr Reed’s OFC speech that caught his eye, Mr Chapman said making it easier for UK farmers to sell produce into public service catering contracts is “great news, if it happens”.
He continued: “NFUS (NFU Scotland) has been talking about this for years but yet it always seems to come back to what’s cheapest.
It could have been brilliant news for the whole farming sector.”
“It was disappointing to learn that at this stage Scotland isn’t included.
“If it had been, it could have been brilliant news for the whole farming sector.”
Plans highlighted by the minister to make it easier for farmers to make money from selling surplus energy back from solar panels and wind turbines will include Scotland.
Mr Chapman said: “I am unsure how this would work, so will be following developments closely.”
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