The Farm Retail Association (FRA) has issued a stark warning about the catastrophic consequences of the recent Budget announcement by Chancellor Rachel Reeves. The organisation contends that the measures outlined will decimate the UK’s farming industry and compromise the nation’s food security.

A Death Knell for Family Farms and UK Food Culture

The changes to Inheritance Tax relief on farms and on businesses is a particularly devastating blow. This policy change will force many family-run farms and farm retail businesses to sell off land and assets to meet inheritance tax demands, leading to a significant loss of agricultural heritage and a decline in domestic food production. 

A Perfect Storm for Small Businesses

In addition to the challenges posed by the changes to IHT relief, the FRA highlights the cumulative impact of other measures:

• Minimum Wage Increases: While the FRA supports fair wages, the substantial increases in the minimum wage, particularly for younger workers, will place immense pressure on farm retail businesses with tight profit margins.
• Reduced Business Rates Relief: The reduction in business rates relief for retail and hospitality businesses will directly impact farm shops and other farm-based retail outlets, increasing costs and hindering growth.
• Employer’s National Insurance Hike: The rise in employer’s National Insurance contributions will further erode the profitability of farm retail businesses, potentially leading to job losses and reduced investment.

A Bleak Future for UK Food

Emma Mosey, FRA Chair and owner of Yolk Farm in Boroughbridge, expressed deep concern: "Yesterday’s Budget sounded a death knell for small-scale food production in the UK. These measures will accelerate the decline of family farms and the loss of our rural heritage. The future of UK food culture hangs in the balance."

"Our members are facing a perfect storm of increased costs. The combination of rising minimum wages, reduced business rates relief, and higher National Insurance contributions will squeeze profit margins and force businesses to make difficult decisions. This could lead to job cuts, reduced investment, and higher prices for consumers."

"Our members are committed to paying fair wages and providing good working conditions. However, the rapid increase in costs is making it increasingly difficult to remain competitive. We need a balanced approach that supports businesses while also ensuring a fair deal for workers."

“Despite running on a platform of supporting small businesses, promoting growth and reducing inflation, the government’s actions yesterday could just do the opposite.  Many farm retail businesses are family-run by hard working people, which calls into question the government’s definition of a working person.  These fears cannot be overplayed.”

The FRA urges the government to reconsider these damaging policies and implement measures that support the agricultural sector. A thriving farming industry is essential for the UK’s food security, rural economy, and environmental sustainability.

About the Farm Retail Association:

The Farm Retail Association is a leading organisation representing the interests of farm shops, farmers markets, and other farm-based retail businesses across the UK. We promote the growth and development of the farm retail sector, championing the importance of local food and sustainable farming practices.

www.farmretail.co.uk

FARM RETAIL ASSOCIATION UNVEILS NEW BRANDING

With a clear vision to strengthen and grow the farm retailer industry, the Farm Retail Association (FRA) recently unveiled its new branding and website as it intensifies its resolve to be the ultimate partner for farm shops, farmers markets and PYOs.

Emma Mosey, Chair of the FRA and owner of Minskip Farm Shop and Yolk Farm in York, says, “This is a new chapter for the FRA and we wanted to strengthen our branding and ensure that through the website members understand they are at the heart of everything we do. We put their needs first, connecting the smallest with the established and all that’s in between because everyone has something to learn. We want to build a community that increases customer access to real, local food.”

Writer and broadcaster Hugh Fearnley-Whittingstall who is also Patron of the FRA, launched the rebrand with FRA chair Emma Mosey.

Fearnley-Whittingstall presents his River Cottage TV series and authors books, as well as fronting documentary series’ such as Hugh's Fish Fight, Hugh's War on Waste, Britain's Fat Fight and War on Plastic with Hugh and Anita.

He said: “I'm delighted to be joining the Farm Retail Association at the Speciality & Fine Food Fair to celebrate the start of a new chapter for the association and to connect with the amazing farm retail community.”

The organisation offers a multitude of member benefits including:

Exclusive cost-saving benefits – Members will enjoy discounts on products and services, as well as access to industry-leading resources. This includes exclusive pricing on Nisbets, Delice de France, Cotswold Fayre an Epos providers as well as many others, which will help to contribute to membership and make businesses more profitable.

Expert advice and support – Members also have access to free town-planning and employment law helplines, as well as access to a range of consultants. There are also free online webinars and in-person events where members can learn from experts and other retailers, as well as the annual conference.

Networking Opportunities –  Members can learn from larger retailers in the industry who have a wealth of experience and take the opportunity to connect with like-minded individuals and build valuable relationships with other farm retailers.

Government Advocacy – The FRA is committed to representing the interests of its members and works tirelessly to ensure that the government policies support the growth and success of the farming and food sectors. The FRA work with influential figures in food, business, farming and politics to raise the profile of the association and get important messages heard. 

PR and Marketing Support – To ensure that every member feels supported in promoting their initiatives and those of the FRA, a dedicated PR toolkit is being launched. The FRA is committed to increasing consumer footfall and awareness of the market through PR, marketing and lobbying efforts and supporting members to do the same.

By working together, the FRA supports its members in running profitable businesses and increasing footfall to their doors.

To become a member visit www.farmretail.co.uk/memberships/