Farm finances to remain strong over the coming months

“This reflects the strength of all farm gate prices over recent months,” he explained.

“And this trend looks set to be maintained over the coming months.

“There are no clouds on the horizon, regarding the day-to-day finances of farming at the present time.

“But it’s not all plain sailing.

“The two per cent increase in employees’ national insurance contributions, which will be paid by employers, kicks-in on April 6th.

“And this will have a direct impact across all sectors of local agriculture.”

According to McCaffrey, increasing numbers of farm businesses in Northern Ireland are employing additional staff at the present time.

“This reflects the growing scale of these businesses and the growing need for farmers to make lifestyle changes.”

Significantly, the Chancellor of the Exchequer, Rachel Reeves made no specific reference to agriculture in her recent Spring Statement.

For farmers across Northern Ireland, the ‘elephant in the room’ remains the impact of the inheritance tax changes, announced by the Chancellor as part of last October’s Budget.

Seamus McCaffrey again: “The Chancellor had an opportunity to address the inheritance tax issue, courtesy of her Spring Statement.

“But she failed to do so. So as things currently stand, it’s a case of working on the basis that the inheritance tax changes flagged up in Budget 2024 will come into force on 6thApril 2026.”

According to the Omagh-based accountant, HMRC Has still not published the full details of the new inheritance tax arrangements.

“This may not happen until October of this year: six months prior to the introduction of the new measures,” he said.

“In the meantime, farm families should start to put effective succession planning arrangements in place now.

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“It will take some time for these measures to come into effect. So, putting this matter off until such times as HMRC published the full detail of the new inheritance tax measures could be too late.

Significantly, Seamus McCaffrey is confirming that many farm businesses are already seeking active advice on how they can best put realistic succession plans in place, in light of the tax changes contained in Budget 2024.

He concluded:

“It’s important the farm families receive the full breadth of professional advice that they require, where this important matter is concerned.

“And these steps should be taken with immediate effect.”

Meanwhile, Ulster Farmers' Union (UFU) president, William Irvine, has expressed disappointment at the absence of any mention of agriculture in the Chancellor’s Spring Statement.

He said

"Agriculture is the backbone of the rural economy, playing a vital role in food security, economic growth, and environmental sustainability. Despite repeated warnings from the industry about the impact of recent tax changes, today's statement failed to address these concerns.”

William Irvine concluded;

"We are deeply concerned by the government's lack of focus on agriculture at a time when food security has never been more important given the current world events.

“The UFU urges the government to recognise the strategic importance of food production and take immediate steps to provide certainty for the industry.”