Issues surrounding beef cattle production in the U.S. have been a line-drawing situation for quite some time now. In fact, certain key issues have been the uprising for more industry groups that, quite frankly, choose to argue from the opposite side no matter what the situation is. Industry infighting has reduced the level of success on major issues, especially when the political environment wasn’t in ag’s favor over the last several years.
When WLJ develops editorial content and releases articles on various topics, we have noticed a major shift in the needs of our readership. There are a number of key issues for operational long-term success that need to have major support from all groups. Unification has become a major buzzword in our industry for the last several months. Without question, we need to be unified on major fronts.
While we are currently seeing a new administration being named and the repositioning in D.C. is underway, we can look across the globe and see that these issues are not just a U.S. issue—they are a global issue. Last week, farmers in the United Kingdom (UK) gathered in protest for the very issue that we deal with in the U.S. With each generation that strays away from agriculture, politicians’ understanding of the accounting, processes, operational viability and year-to-year management becomes harder and harder to explain. While most ranches can show a strong asset balance, much of the time, cash levels remain low in relation to the asset level. Most in-city businesses will show the exact opposite.
The UK’s Labour Party, historically known as ag friendly, turned their back on the farming population and targeted farming operations’ succession taxes as a way to help balance the country’s budgetary gaps. After a landslide victory in the UK’s general election in July, the Parliament flipped from the Conservative Party’s majority rule to the Labour Party. The UK has also seen runaway inflation and financial woes for the country’s budget.
In an effort to balance the budget, UK Chancellor of the Exchequer Rachel Reeves announced plans to incorporate an inheritance tax on farms worth more than $1.27 million when converted to U.S. dollars. Thinking of the average WLJ reader who runs over 16,000-acre operations, it wouldn’t take much to reach that level if the same legislation were proposed domestically. This new announcement brings in nearly 66% of operations currently in production in the country.
Since 1992, the Agricultural Property Relief Act was instated and farmers in the UK became exempt from an inheritance tax. Now, this scheme is sunsetting and the recent announcement says that in April 2026, farms will become subject to a 20% tax upon inheritance of an operation. In response, thousands of farmers gathered at Parliament to protest the announcement saying asset-rich but cash-poor operations will have to sell land to pay the tax liability the Labour Party is planning to implement.
A statement released by the chancellor and Secretary of State for Environment, Food, and Rural Affairs Steve Reed said, “But with public services crumbling and a $22 billion fiscal hole that this government inherited, we have taken difficult decisions. The reforms to Agriculture Property Relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on.”
This statement shows the direct target UK’s farmers are under. Quite frankly, this doesn’t have a good outlook. A major word in courts, development and issues is “precedence.” Once precedence is established, it’s hard to revert back. These farmers are going to have a major uphill battle.
Bringing the issue back to the U.S., our industry groups have been working on this same topic for decades. Government wants its tax dollars, and the populations continue to fight back. Industry groups in the U.S. have all voiced unanimous support on this front but have yet to set aside other issues to fight for one major cause. The WLJ readership has made it very clear this is one of, if not the largest, issues on the minds of producers. We must be unified when it comes to issues and know how to work together before we end up in the same situation as the UK farmers.
Fortunately, the names surfacing as President-elect Donald Trump’s pick as the secretary of Ag all appear friendly to our cause, but relaxation on this front isn’t in our best interest. This will be a key component for us all to watch, especially as the new administration attempts to tackle the current national deficit.
Lastly, we would like to wish all our readers a safe and happy Thanksgiving! It’s a wonderful time to reflect on the good things we have in life and the opportunity to appreciate the blessings we all have. I am so thankful for the continued faith of our readership and supporters of WLJ. It truly means everything to us all that you look to the staff and writers at WLJ for information and guidance. — LOGAN IPSEN
