Nature scheme issues raised by UFU

Concerns and queries about operational features of the Farming with Nature (FWN) scheme have been raised by members of Ulster Farmers’ Union (UFU).

The first phase of the new agri environment scheme closed for applications in early August, with 879 farmers applying during the six-week window.

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However, the UFU has said “significant issues” need to be addressed with the scheme, including the online mapping system.

“Members have been frustrated by various aspects, in particular, the computer system setup and how it blocks them from doing environmental actions,” said UFU deputy president John McLenaghan.

He gave the example of no mechanism being available to update field information. This means the system works off 2024 data which can make applicants ineligible for some scheme options.

“We will be making it clear that changes must be made to the scheme before any future tranches are launched to encourage and maintain farmer uptake,” McLenaghan said.

Pilgrim’s Europe tops company list

Pilgrim’s Europe’s operation in NI, formerly known as Moy Park, has been ranked as the largest NI company in terms of turnover.

The annual list, compiled by Ulster Business magazine, shows the poultry processor had sales of £2.04bn in its latest financial accounts, up from £1.88bn the previous year.

In second spot is grain trading company W&R Barnett with a turnover of £1.57bn. In last year’s rankings, the Belfast-based firm had turnover of £1.81bn.

Other notable agri food firms in the list include Dale Farm in 14th position on a turnover of £631m and the Foyle Food Group is in 20th place with sales of £501m.

Almost 7,500 paid IHT unnecessarily

Many of the 7,458 families in the UK that paid inheritance tax on life insurance policies during 2022/2023 could have avoided tax bills, according to NFU Mutual. The latest figures from HMRC show that of the 31,500 estates that paid inheritance tax in 2022/2023, almost a quarter of them included life insurance policies.

Sean McCann from NFU Mutual pointed out that if life insurance policies are “written into trust”, then they are not normally subject to inheritance tax when the policy holder dies: “Many people buy life insurance without advice, so aren’t aware that if they don’t put the policy in trust it’s included in their estate and could end up being taxed at 40%. Putting life insurance policies into trust is relatively straightforward. If you have life insurance and it isn’t in trust, phone your provider and ask for a trust form.”

UFU requests A5 meeting

The Ulster Farmers’ Union (UFU) is seeking an urgent meeting with the Department for Infrastructure (DfI) Minister Liz Kimmins in relation to the failure to give clarity to those farmers affected by the A5.

UFU deputy president John McLenaghan said, “The DfI’s ongoing behaviour is utterly appalling and suggests they care very little for landowners whose livelihoods have been caught up in the A5 project.”

He added that the only communication farmers have received from DfI has been a generic letter outlining vague options with no-follow up, timelines or figures.

“This request for an urgent meeting is now an opportunity for the DfI minister and her department to do what is right and help improve the situation before confidence in infrastructure schemes continues to worsen,” said McLenaghan.

Merchants see demand for grass seed surge

With third- and fourth- cut silage harvested and plenty of grass available for grazing, many farmers are making use of the current weather conditions to carry out autumn reseeds. Reports from agricultural suppliers in NI suggest that there has been a surge in enquiries about grass seed in recent days.

Exact prices for seed depend on the species and varieties in the mix, as well as the inclusion of any specialist treatments.

In general, most seed mixes in 12kg to 14kg bags are available for £45 to £55 at present, with some specialist mixes costing closer to £60 per bag.

FFA highlight IHT exemptions

The steering committee of Farmers For Action (FFA) in NI has suggested it might be worthwhile for farmers to see if they qualify for exemptions from inheritance tax (IHT) and capital gains tax as their land is a national heritage asset.

Under current rules, land that is seen as being of “outstanding scenic, historic or scientific interest” can be exempt from IHT. In general, any scenic land would have to be in an Area of Outstanding Natural Beauty (AONB), while historic land might be linked to an important event, such as a battle. Land that might qualify as scientific would be in an Area of Special Scientific Interest (ASSI) in NI. There are also exemptions for ancient woodland and the likes of historic buildings.

According to government guidance, the owner of the asset must look after it and make it available for the public to view. Where those conditions are not met, the exemption is withdrawn and the tax must be paid.

July price down 1p/l at Lakeland

NI’s largest dairy processor, Lakeland Dairies, is the first out with a price for July milk and decided to effectively take 1p/l off when compared to June supplies.

The Lakeland base price is back to 39.3p/l and while that is only a 0.5p reduction from June, the co-op has decided not to continue with a 0.5p/l “unconditional bonus” which was added into the price paid over the last two months.