The President of the Farmers’ Union of Wales (FUW) has written to every MP in the UK, highlighting grave concerns about changes to inheritance tax, due to come in next April.

It follows months of lobbying by the FUW, which has consistently warned ministers and officials that the reforms represent an existential long-term threat to Welsh family farms and the wider rural economy.

Farmers and stakeholders across Wales have repeatedly raised fears that the proposals - if implemented in their current form - would accelerate the loss of family-run holdings and undermine the social fabric of rural communities.

FUW analysis suggests up to 48% of Basic Payment Scheme (BPS) recipients in Wales could be affected by the inheritance tax proposals.

A Welsh Affairs Committee report last week found the proposed inheritance tax reforms have created a “climate of uncertainty and confusion” for farmers. The cross-party committee has called for a Wales-specific impact assessment before changes are implemented next April, highlighting the need to fully understand the potential effects on Welsh family farms and rural communities.

A report from the cross-party Environment, Food and Rural Affairs Committee on 16 May calls on the government to delay announcing final reforms to Agricultural Property Relief and Business Property Relief until October, with a view to implementing them in April 2027, arguing a 12‑month pause would give government more time to conduct proper consultation, carry out robust impact and affordability assessments, and consider alternative approaches that avoid harming small, family farms.

FUW President Ian Rickman said: “It is highly unusual for an FUW President to engage directly with elected representatives - and perhaps unprecedented to write to every MP. However, we feel compelled to act, as we firmly believe UK Government’s proposed changes to inheritance tax relief pose an existential threat to family farms in Wales and to the wider rural community.

“FUW fears the hardest hit will be smaller family farms - holdings built through generations of hard work, often maintained on tight margins and supported by family members juggling jobs to keep businesses going. These are the farms that form the backbone of rural Wales.

“Many of our members worry that, upon their death, their loved ones could face an unaffordable tax bill simply to inherit the family farm. We fear such families would be forced to sell essential assets to meet these new costs, undermining the viability of their businesses and threatening the future of Welsh family farming.

“FUW notes several credible alternatives to the government’s current approach have already been proposed. In the present circumstances, we would be supportive of any measure that helps mitigate or prevent the irreversible damage that these inheritance tax changes risk inflicting on our rural communities.

“With the UK Budget imminent, we urge MPs from all parties to raise these concerns directly with the Chancellor and Treasury ministers. The decisions made in the coming days will determine whether family farms can continue to be passed on with confidence to the next generation.

“What happens next will have lasting consequences for the families and communities who depend on these farms.”