The introduction of inheritance tax for farmers has brought the No Farmers No Food campaign to my attention. Here I share some of the issues.
When a farmer dies, the value of the land, if over £1M is going to be liable to inheritance tax from April 2026.
The problem is, a farm may be valued at £1M, but its annual income is typically not sufficient to cover a huge inheritance tax bill.
This article by NFU is detailed on this.
Looking at sector impacts, the tax charge resulting from a £1m threshold would wipe out returns for an average cereals farm and around half of returns for average dairy farms. Considering typical historic returns on an average cereals farm and factoring in the reduction in direct payments, a farm making a profit of £34k will be hit with ten annual IHT instalments of £53k, over 1.5 times its profits. Even at a £2m threshold the annual tax payments of £33k would equal farm profits.
Information from the campaigning group No Farmers No Food.
#UniteForFarmers
January 25th: Unite for Farmers Day. Everyone support our farmers on this day of unity. Please share these images in your local communities to send a message to the government. Thanks. 🚜
What Farmers are asking for
🚜 Axe the inheritance tax on family farms
🚜 End mass scale solar panels on prime farmland
🚜 Ensure a fair price from supermarkets for UK farm produce
🚜 First priority to Buy British food
🚜 Improve supply chain prioritisation for local farmers to receive contracts for food supply in hospitals and schools
🚜 More investment in agricultural land flood protection
🚜 Ensure that supermarkets clearly mark the source of the food on packaging / shelves
🚜 Set up a national farming fund that supports the farming industry across the UK
🚜 Mental health support
A farmer explains problem of inheritance tax
James Melville on the history of No Farms No Food
Full text of the above tweet:
I set up a farming campaign account
@NoFarmsNoFoods
on X a few months ago that has snowballed to over 130,000 followers on X and also 13,000 members on Facebook and it has received a lot of media coverage.
We now have a steering group of key individuals in the farming and fishing industries driving this campaign forward in many ways. By farmers, for farmers. No bandwagon jumpers…just a campaign driven by farmers or those with farming heritage.
I care deeply about the farming industry because of my own farming heritage and want to find ways to amplify and support our magnificent farmers to ultimately create meaningful policy support from governments (who aren’t listening to the many concerns of farmers).
Farming is something that I care passionately about and I am working with numerous farmers and connected rural industries right across the industry to help get their voices heard in a non partisan way.
I know first hand how gut wrenchingly difficult it is for farmers to sell their land or farm. Farming isn’t just a job. It’s a way of life. The soil is in their blood. Their service to society is often taken for granted.
One of Britain’s greatest assets is the beautiful, lush, green countryside. Our green and pleasant land – cultivated, maintained & harvested by our farmers. But once the farmland is gone, it’s gone. It never returns. We lose our countryside at our peril.
Farming should be right at the top of the government agenda. But instead of supporting farmers, this appallingly cruel and vindictive government are threatening the existence of so many family farms. It’s absolutely appalling.
Our farmers are being shafted by supermarkets and governments. But without a strong farming industry, society crumbles. Food security is the absolute foundation of a functioning society. So let’s listen to the concerns of our farmers. Let’s understand their situation. Let’s campaign and build public support our farmers.
My father had to deal with numerous problems in his industry. The problems still exist today (and many additional problems). Enough is enough. It’s time for farming to be put front and centre of government policy – in the best interests of farmers. Our food security depends on it.