Businesses which operate closely with farmers, such as vets and machinery dealers, have raised their concern over the new inheritance tax changes.
Agriculture-related industries are using the ongoing LAMMA event to highlight their fears over the Labour government's proposal, which rolls out from April 2026.
Businesses working closely with farmers, including builders, vets, feed merchants, fencers, machinery dealers and tool manufacturers, are also anxious about the 'family farm tax'.
Given so many of these businesses are reliant on a thriving farming industry for their own trade, they too are urging the government to reconsider the policy.
From April 2026, inheritance tax relief rules will change, resulting in a 100% relief on the first £1m of assets and then 50% relief on assets after that, equating to an effective tax rate of 20%.
This is in addition to other inflationary policies within October’s budget, including rises to National Insurance and the National Living Wage.
Speaking to numerous agriculture-related industries at the annual machinery and technology show, the NFU said many businesses in rural areas were 'under crushing pressure'.
Independent analysis commissioned by the the union shows that 75% of farm businesses could be impacted in some way by the tax changes.
Meanwhile, new data from CBI Economics shows that the changes could lead to more than 125,000 job losses, with family businesses significantly cutting investment.
NFU President Tom Bradshaw spoke to attendees at LAMMA: “Farm businesses are often the bellwether of the rural economy and many have curtailed investment because any penny they had or could have borrowed will now have to go on saving the future of the farm.
“That is why we have chosen today to launch a pledge for businesses to sign to show they will join our fight to stop this unfair tax and secure the future of British family farming and those allied industries which rely on a thriving farming sector.
“For the future of our industry and for vital growth in the economy, I urge all businesses associated with agriculture to sign our pledge to show the government it is not too late to review plans."
Mr Bradshaw was joined on stage at LAMMA by Jeff Claydon, CEO of drill manufacturer Claydon, who explained how his business would be affected by the tax.
He said: “I started our family drill manufacturing business alongside our farm 20 years ago and I’m incredibly concerned the inheritance tax changes will curtail privately owned businesses and growth in family businesses.
“Without profit, you haven’t got a business. And the current policy and economic outlook means so many are seeing their profits slashed."
In addition to the inheritance tax changes, Mr Claydon said there were "so many questions government still haven’t got an answer for".
"For our business, the indecision about the Farming Equipment and Technology Fund means orders have stalled and we’ve got warehouses of unmoved stock," he explained.
“We want growth, the government has repeatedly said it wants growth, but it must revisit its short-term plans for the agriculture industry because it is being stifled.”
