The NFU president has written to the prime minister ahead of next week's budget as fears grow over the potential loss of agriculture property relief.
Reports that the government is considering reviewing the tax relief would be 'incredibly concerning' for farmers, warned Tom Bradshaw, NFU's president.
His letter to Sir Keir Starmer calls on him to 'stand by his commitments' to British farmers by continuing APR and increasing the agriculture budget.
While in opposition at the NFU’s conference in 2023, Sir Keir said that farmers needed a government that "seeks a new relationship with the countryside and farming communities… based on respect, on genuine partnership".
He also said: “We can’t have underspends in the allocated money, we can’t have farmers struggling while they wait for the right Sustainable Farming Incentive (SFI) standards to be announced.
"We can’t have everyone burnt out by the bureaucracy and constantly moving goal posts, it’s too important”.
However, reports that Labour are considering cutting the agriculture budget due to the failure of the previous government leading to an underspend of £358m, and a possible review of APR, has led to heightened concerns within the industry.
Mr Bradshaw called on the prime minister to stand by his words made at last year's conference to ensure 'certainty and stability' for the industry.
He pointed to farmer confidence being at its lowest level on record due to high production costs, extreme weather and uncertainty during the agricultural transition.
"That is why on 30 October we’re asking for an increased agriculture budget and confirmation of no change to APR," the NFU president explained.
"The loss of APR could mean family farms, who are vital to producing food for the country, providing jobs and looking after our countryside, having to be sold to cover the costs.
"Changes would amount to a 'family farm tax'. It would also have a devastating impact on tenant farmers and new entrants."
APR exists to ensure the continuance of farming after the death of the farmer, while BPR fulfils the same objective for other types of family businesses.
Farming bodies say the reliefs allow farmers and rural business owners to continue to produce food, maintain landscapes and support the rural economy.
If there was no relief, or even if it was capped as some have suggested, the industry has warned there would be a high tax bill to pay.
The Country Land and Business Association (CLA), which represents thousands of landowners, recently urged farmers to write to their MPs stressing how scrapping the tax relief would be a 'catastrophic betrayal' to the nation's food producers.
The NFU's letter also asks for a multi-year annual agriculture budget of £5.6bn, which would be an 'essential investment' to deliver the government’s environmental goals and support the economic stability of farmers.
Mr Bradshaw added: “We need stability and that genuine partnership with government which the prime minister spoke of."
What else is the NFU calling for?
Ahead of the autumn statement on 30 October, the NFU is asking the Treasury to:
• Ensure adequate resourcing to deliver the Farming and Countryside Programme, maintain flood defences and deliver the government’s new bTB strategy.
• Introduce enhanced capital allowance to incentivise investment in climate smart investments.
• Only apply Capital Gains Tax increases to non-business or short-term gains.
• Commit to a full consultation ahead of the proposed abolition of the Furnished Holiday Lettings regime.
• Confirm a further round of the Rural England Prosperity Fund.
