Farmers on the march

[ellal]

Plus, they've potentially been passing wealth down, tax-free, for generations, have they not?

Most farmers are land rich, cash poor...

And they will be forced to sell up to large corporates who won't give a monkey's about what is best for the UK...

But as you mention 'passing wealth down, tax-free, for generations', what do you have to say about the royal family being exempt?

Or such hangers on like the Duke of Westminster?

They pay nothing or next to nothing when it comes to IHT!

 

[blup]

Government saying only 500 max will be effected so why is there thousands and thousands in London protesting . Government getting their sums wrong yet again ?

500 in one tax tear, just as many farms go bust for other reasons. The demo's been picked up by right wingers and the NFU who overwhelmingly supported brexhit but didn't have the balls to recommend their members how to vote because they could see how badly they would be affected.

 

[motorbiking]

Net profit of 40-50k from a 300-400 acre farm? That's only £125 an acre.

thats within £3 of the industry average.

 

[Notch7]

so why is there thousands and thousands in London protesting

Why are they protesting?

I’ve seen plenty of farmers being interviewed but none of them say whether it will actually affect them.

 

[pcaouolte]

thats within £3 of the industry average.

Where are you getting that figure from?
According to https://www.fwi.co.uk/business/busi...rofit-forecasts-point-to-focus-on-fixed-costs "The net margins of higher performing businesses in 2024 are expected to be more than 75% greater, at £422/ha, than those of average performing farms, at £237/ha." Similar net margins are quoted by other sources for arable farms.

£422/ha = £1042/acre and £237/ha = £585/acre.

 

[JohnD]

Why are they protesting?

I’ve seen plenty of farmers being interviewed but none of them say whether it will actually affect them.

Perhaps it's because the ones with the most generous tax concessions to lose are the very small number of very rich ones

Who are not conducive to public sympathy and popular support.

The vast majority of people earning their living in the agribusiness are very far from being multimillionaires.

 

[blup]

There's two separate issues, the government's need to increase taxes to fill the black hole, and on the other hand fair agricultural policies. Farmer's do not vote labour generally, so that will influence government policy . Doing something about the anti competitive negotiating power of supermarkets would be welcome.

 

[motorbiking]

Where are you getting that figure from?
According to https://www.fwi.co.uk/business/busi...rofit-forecasts-point-to-focus-on-fixed-costs "The net margins of higher performing businesses in 2024 are expected to be more than 75% greater, at £422/ha, than those of average performing farms, at £237/ha." Similar net margins are quoted by other sources for arable farms.

£422/ha = £1042/acre and £237/ha = £585/acre.

I'm not following your maths - I think you've multiplied instead of dividing.

avg performers £237 per Ha = £237 / 2.471 = £95 per acre = £28.5k
high performers £422 per Ha = £422 / 2.471 = £170 per acre = 51k for a 300 acre farm

Updated arable farm profit forecasts for harvest 2024

Forecasts for profitability from harvest 2023 and for harvest 2024 from Strutt & Parker’s arable farm profitability model

rural.struttandparker.com

Hence why they are complaining about a potential £600k tax bill. Even with an interest free 10 year payment plan you can see they are short.

 

[pcaouolte]

I'm not following your maths - I think you've multiplied instead of dividing.

Duh, you are right I multiplied instead of dividing.

 

[ReganAndCarter]

They are being treated better than the rest of the population but still complaining.

That's because the service they provide, ie. feeding the nation, is far more important that what the rest of the population do. Without them putting food on everyone's tables nothing else can function.

Unfortunately dumb, know-nothing townies have been fed bs that all farmers are rolling in it and drive about in new Range Rovers all day. The reality is far from the truth. We need to secure our food supplies or we will be forced to import everything. Let's hope they don't need to go on strike to show how vital they are.

 

[motorbiking]

Why are they protesting?

I’ve seen plenty of farmers being interviewed but none of them say whether it will actually affect them.

because even with a 10 year interest free loan, it will take more than 100% of their next 10 years profits to pay the IHT due.

 

[JohnD]

because even with a 10 year interest free loan, it will take more than 100% of their next 10 years profits to pay the IHT due.

What makes you think that prevents them saying how they might be affected?

 

[Ihavenojob]

 

[motorbiking]

What makes you think that prevents them saying how they might be affected?

eh?

 

[Brigadier]

So what?

Why should one group be exempt, and not others?