Young farmers have issued stark warnings about their future in British farming as the government shows no sign of reversing its inheritance tax changes.
Fourteen young farmers warned about the survival of Britain's family farms to MPs at a recent drop-in event, which was organised by the NFU.
The event was an opportunity for politicians to hear from the next generation about how the IHT changes, announced in the budget, would impact them.
The government plans to reform agricultural property relief (APR), meaning farms worth more than £1m will incur a 20% inheritance tax charge from April 2026.
But young farmers warned to MPs that the removal of this relief would mean they would be the generation burdened with unaffordable tax bills.
This could force them out of the industry and reduce their ability to invest in their own future, leading to the potential contraction of UK food production.
The event came as thousands of tractors descended on Whitehall to protest the changes – the third time since the budget. Despite this, the government has shown no willingness to revisit its proposals.
Mike Wilkins, a young farmer from Wiltshire who attended the drop-in session in parliament, warned that sustainable British food was now 'cast into doubt'.
“On my family’s farm, my dad is still the primary owner as this was the best tax advice given ahead of the budget," he explained.
"Now, my sister and I face a possibly crippling tax bill that we just don’t have the funds to cover and could impact our ability to produce food for the nation.
“It also means we won’t be able to invest in our agriculture systems to meet our climate ambitions.”
North Yorkshire beef and sheep farmer Amanda Watson said “our land is everything – it’s not just an asset on paper, it’s the foundation of our entire business”.
She said if her family were made to pay the tax, they won’t be able to continue farming: “Selling off parts of our land isn’t an option without destroying the farm,” she warned.
“The government’s inheritance tax policy fails to protect family farms like ours, ones that produce food, care for the environment and maintain biodiversity.
“It shows a complete disconnect from the realities of British farming. For the sake of families like mine, who are custodians of the land, looking after it for future generations to come, the government must listen to our concerns.”
NFU President Tom Bradshaw said it was clear from hearing these stories that the impact of the tax hike would be felt “not just today, but for generations to come”.
“We face turning away the next generation, who are excited to drive forward the sustainable production of food, because the family farm they have worked on could be wiped out by huge inheritance tax bills.”
Mr Bradshaw said that it had never been more important to unlock the potential of farming following the recent National Preparedness Commission report, which raised concerns about UK food security.
He also highlighted that the figures the Treasury was using to create this policy "have been disputed by almost everyone", including previously supportive tax experts and levy board AHDB.
New supplementary forecasting from the OBR also said that it was 'highly uncertain' whether the measures would raise the forecasted £500 million.
The OBR's report goes on to say "it is likely to be more difficult for some older individuals to quickly restructure their affairs in response to the measure."
“When the multiple strands of evidence look this stark, simply digging in and holding a position can’t be the right option,” Mr Bradshaw continued.
“Dialogue and solutions have to be the way forward for everyone and I remain committed to finding those constructive solutions with the chancellor.”
In other IHT news, the entire UK food manufacturing industry joined forces last week to urge the government to rethink its changes.
A total of 57 businesses across the food supply chain, including all of the UK's major supermarkets and major food processors, voiced their concern in a new letter.
The NFU is also set to 'bring to life' the effect of the proposals with a display of agricultural machinery and toy tractors outside its conference in London later this month.
The union is asking for donations of 'pre-loved' farm toys and other agricultural memorabilia as part of its ongoing campaign to stop Labour's 'family farm tax'.
