Tax relief could make ELMs more attractive

More farmers would sign up to Defra's Environmental Land Management scheme (ELMs) if it is covered by agricultural inheritance tax relief, say industry leaders.

Country Land and Business Association president Mark Tufnell said: “The CLA has campaigned extensively to change the definition of agriculture in the tax system to include ecosystem services.

“It is vital to give farmers and landowners the confidence they need to engage with environmental delivery, improving biodiversity and carbon sequestration.

“Without this change, we will see a perverse outcome whereby forward thinking, nature friend- ly farming will be punished by the tax system.”

The change would also serve to encourage farmers to look afresh at entering into ELMs, said Mr Tufnell. “ELMs has laid a path that is worth walking, and we encourage farmers to look very carefully at it.”

That said, it was difficult to see what – if any –ambition the government had for the rural economy, added Mr Tufnell. Rural businesses continue to be held back by apathy in public policy, not least in the planning system.

“The rural economy is 19% less productive than the national average. Closing this gap would add £43bn to the national economy. Nothing in this budget will unlock that vast potential.”