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A rural response to the budget

26 November 2024

Sarah Hulme, Rural Mission and Ministry Officer, reflects on the recent budget and on its impact on rural communities.

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Tuesday 19 November was an important day for those involved in farming & the agricultural sector. Alongside organized protests in London by the NFU, which saw thousands of ordinary farmers take time out of busy working lives to gather in Westminster; the same afternoon saw the first sitting of the DEFRA select committee in parliament, where issues of the impacts of recent budget changes upon tenant farmers were discussed; the RSA held a citizens food summit exploring food systems & food poverty, including the wider costs to the NHS that a diet of Ultra Processed Foods (UPF) is having upon the health of this nation. Meanwhile, at COP 29 in Baku, some of the world’s 510 million most vulnerable small-scale farmers living on the frontlines of climate change - who produce between 25%-35% of the world’s food whilst receiving less than 1% of all the allocated financial resources to help mitigate & adapt to the impacts of climate change – struggled to get their voices heard amidst the large number of industrial food sector lobbyists present.

Welcome to the first in a series of ‘5 things you may not know’ about issues of rural justice, digging behind the headlines, joining some dots and promoting voices of lived experience which so often get overlooked in any press/ public debate. Hearing from the wider Rural Hope network, we will explore practical ways the wider church can support our rural communities in both prayer and action.

First up – who will be most impacted by recent budget announcements? How can we support those dealing with extra uncertainty & stress? What might the wider implications be for the vulnerable in our society?

Most impacted?

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There has been much angry commentary, with claims and counter-claims about the impact on farms of changes to Inheritance Tax. Lots of views have been expressed. But not much has been heard about how they will affect tenant farmers, a group in our agricultural system who are particularly vulnerable, yet are responsible for farming around a third of farmland in Wales & England. George Dunn (Chief Executive of Tenant Farmers Association) wrote the following to the DEFRA select committee chair: “In responding to the Budget statement the TFA said that it understood and agreed with the premise that it was unfair that wealthy individuals were able to enter the land market, having made capital gains in other parts of the economy, to hide their wealth from tax. However, it is very clear that in choosing to focus on Inheritance Tax, the Chancellor has pulled the wrong lever.”

“Already we are seeing the advisory industry which surrounds the landlord community step into gear by promoting the need for estates to look at restructuring their position to maximise their ability to avoid tax. With the landlord community being considerably risk averse, we are anticipating many situations where private landlords will be seeking to bring back into hand land currently let under short-term FBT agreements to provide them with options for wealth management. We could see many FBT agreements being ended and many tenancy agreements that should have been offered being pulled from the market. We have already had a number of conversations with TFA members who are worried about their position. We are also concerned that landlords may cease or significantly reduce their investment in let holdings, even secure ones, for fear of increasing their value which will then be subsequently assessed for tax on death.”

Offering support

Our Agricultural Chaplains encounter and directly support those in our rural communities attempting to deal with these extra uncertainties & stress. Andy Jerrard (SWP District rural support worker ) offers the following insights: “You've got a vulnerable community who are already struggling to work out the changes in agricultural support, why add an extra layer of angst with the announcement about inheritance tax, even if they don't pay a penny extra for that, it'll put them through the mill try and work out what's going on.”

“I would like the church to fully grasp the sea change in the way agriculture is currently viewed & how we support (or otherwise) those involved with food production. It’s there historically to provide food security & we seem to think food will be available from wherever, whenever we want it. Changes in global supply chains & leaders, the changing geo-political situation, all have potential to disrupt current supply chains. Farmers care deeply about providing affordable & healthy food for the rest of the country. They are still attempting to understand the implications of recent changes to payments & expectations around providing nature-friendly land management. A lot of our farmers don’t have spare time & energy to give – protesting means it’s fairly serious! This comes not in isolation, but in a combination of issues which compound feelings of not being wanted or understood by the general population and powers that be.”

A member of the farming community from the Isle of Man says: “The longer-term future for agriculture looks dire! Successive governments do not seem to value farmers/farming - consumers seem to think everything just comes in a packet. We need fairer prices for farmers. Better contract pricing from supermarkets to farmers. Supermarket prices are too cheap - they need to be more realistic. Agriculture should not be a punch bag!”

Wider implications for most vulnerable

Don’t forget the global perspective. For those small-holding farmers attempting to produce food in parts of the world experiencing the realities of climate change, let’s not remain silent. We might need to educate ourselves further – if so, the Joint Public Issues team are here to help COP29 – Joint Public Issues Team

For those in our country experiencing tenancy uncertainties, let’s not remain silent. We might need to educate ourselves further – if so, the Tenant Farmers Association can help Tenant Farmers Association (TFA)

For the mental health of those overwhelmed by recent policy announcements, let’s not remain silent. Chaplains & charities are there to listen & support. We might need to locate our local team Chaplaincy Contacts - The Methodist Church

How can I pray?

“As a local farmer, I’d really appreciate the wider church’s support. I ask you to join me in prayer. Firstly that our Christian farmers will be able to be an example amongst their peers as people of faith able to communicate their hope in Jesus through these stressful times. Secondly, that those who offer chaplaincy to the wider agricultural community may be accessible in the right places at the right times to offer mental health support and bring God’s peace.” Farmer, Peak District

“In our prayers for farmers, it’s that they find the support & mental strength to cope with another financial challenge on top of the post-Brexit changes to funding streams, employers NI contributions for the farmers who have employees, and the advance of 'blue tongue' in sheep and cattle which is now only 15 miles away from where I sit and write.....” Richard Wilde (Birmingham District Rural Officer)

5 ways I can encourage the wider church to listen & act