Farming family highlights ripple effect of IHT catastrophe

A Pembrokeshire farming family has highlighted how the proposed inheritance tax reforms would negatively impact rural businesses reliant on farming.

From April 2026, the government plans to impose a 20% tax on inherited farm assets valued at more than £1m – dubbed the “family farm tax” by the NFU and others.

Janet Cornock, who runs Cefn y Dre farm near Fishguard, with her son James and daughter-in-law Nia, says her beef, sheep and dairy farming business has supported more than 60 local firms since the start of the year.

See also: Rural groups reject figures in new IHT impact assessment

From vets and foot trimmers to electricians, accountants and feed suppliers, together the businesses working with the family employ more than 3,000 people, with the majority 100% reliant on agriculture for their work and income.

Janet Cornock © MAG/Anne Dunn

The family argues that the Treasury’s decision to impose such a punitive tax on working family farms fails to recognise the broader economic and social contributions farming makes.

“This is going to have a huge impact on businesses that we deal with.

“The ripple effect of it is just enormous,” said Janet Cornock.

James Cornock added that farms are also often pushed into making investments, adding value to the property, through government regulation.

James Cornock © MAG/Anne Dunn

“We’ve had to put up a slurry lagoon, which will impact the value of the farm and invertedly our inheritance tax bill.

“At the same time, we had a notice through that our milk price is being cut. Where is money coming from?”

Rural business concerns

Rural business representatives who visited the Cornock family on farm on Wednesday (3 September) were equally concerned about the reforms.

Matthew Lewis © MAG/Anne Dunn

“Farms will get smaller and reduce their stock, which impacts us as there will be less feed to sell, or they will go out of businesses,” said Matthew Lewis from Lloyds Animal Feeds.

Eirian Humphreys, director at LHP Accountants, told Farmers Weekly that out of 90 staff employed by the business, 40 are working directly on agricultural accounts.

“It’s going to affect a lot of agri-related businesses like us.

Eirian Humphreys © MAG/Anne Dunn

“With reduced numbers of farmers, this is what’s inevitably going to happen if they carry on,” he said.

Aled Davies, NFU Cymru county adviser for Pembrokeshire, added: “Welsh farmers are the lifeblood of our rural community.

“This was illustrated through the myriad of rural businesses who showed their support for the Cornock family and many other local farmers who face these cruel tax changes.”

Representatives from 40 businesses turned up to support the Cornocks © Dafydd Cornock