NATIONAL Farmers' Union of Scotland (NFUS) president Nigel Millar and two other union officials will be meeting with a number of Scottish MPs next week to discuss the Scottish Affairs Committee's interim report on land ownership.
The report cites evidence that the current policy regarding inheritance tax, business property relief, agricultural property relief and non-domestic rates has to change, as they are driving up the price of land and are used as a means to preserve inherited wealth.
Non-farming members of the public find it hard to believe that the vast wealth landowners have accumulated as a result of the dramatic increase in the price of land is never taxed, even when it is inherited.
It is that exemption from inheritance tax that has been the main contributor to soaring land values.
The union, with the majority of its membership landowners, said that it understands the committee's concerns over rising land values, but cannot agree that the suspension of agricultural tax relief can solve the problem.
It believes that such a change in taxation policy is likely to fracture the capital base of family farm businesses.
NFUS chief executive Scott Walker commented: "Land prices have become largely disconnected from the returns that can be made from agricultural activity.
"This can make it difficult for family farming businesses to expand, or for individuals to get started in the industry."
Mr Walker went on to explain that taxation is a powerful tool that can be used in a positive way to encourage the long term letting of agricultural land.
"We believe that there are measures that are necessary to help farm businesses expand and grow, and become more productive, explained Mr Walker.
"We also believe strongly that there are measures that are necessary to help new entrants get started in the agriculture industry. Renting land could be a more attractive entry to farming than buying land" he said.
Inheritance tax on land would probably be introduced in bands, with exemptions at lower levels.
However, Mr Walker said: "The suggestion being put forward by the Scottish Affairs Committee of radical changes to the existing tax regime has potential to destroy family farming units."
MARKET ROUND-UP
The Cumberland and Dumfriesshire Farmers Mart sold 5949 prime hoggs in Longtown on Thursday to a top of £134 per head and 282p per kg to average 216.8p (+3.2p on the week).
There were also 3778 cast sheep forward when heavy ewes sold to £150 for Texels and averaged £91.20 (+£8.24), while light ewes peaked at £80 for Cheviots and levelled at £54.18 (+57p).
Rams sold to £164 for a Suffolk and averaged £92.95 (+£9.01).
Messrs Craig Wilson Ltd sold 223 store heifers at Ayr on Thursday to a top of 273.6p per kg and an average of 224.2p (+2.1p), while 266 store, beef-bred bullocks peaked at 256.5p and levelled at 234.1p (-6.5p). Thirty-six store, B&W bullocks averaged 161.1p (+0.5p).
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