Tax changes could be dire for farming

There used to be a perception, and it still persists in some quarters, that there is no such thing as a poor farmer.

The truth, of course, is that all those involved in agriculture have had to endure many hardships and setbacks over the years and while many have survived and some have even prospered, others have been forced to give up working the land altogether.

Competition from overseas and pressure from the giant supermarkets to drive down costs have resulted in diminished profit margins or even balance books slipping into the red.

Farmers who couldn't make ends meet have often been forced to find alternative employment and let out their land to neighbours, a practice known as 'conacre'.

Existing tax law guidance allows ownership of this acreage to be passed on within the family without penalty, ensuring stability in small rural communities and the continued husbandry of the land.

A potential change in how the law is applied, however, prompted by a UK Special Commissioners of Income Tax ruling, threatens this as it raises the possibility that the sons and daughters of the present generation of farmers could face bills on their passing of up to 40 per cent of the potential development value of the conacre land.

The economic reality of such a situation is likely to be that families will have to sell up within a generation or two. The Ulster tradition of small farms will give way to a comparatively few huge concerns, perhaps run by companies rather than individuals.