Call for government to rethink family farm tax

Magnus and his family are dairy farmer at Abbots Bromley, near Uttoxeter, in Staffordshire and he is among the current crop of NFU student and young farmer ambassadors.

He writes:

What we do is a job, not a lifestyle, and one that comes complete with uncontrollable forces like the weather, volatile markets with often little return for the investment and work put in.

As farmers we have a real sense of duty in producing high quality produce to the highest global standards, putting our bodies, minds and souls on the line for a purpose greater than us. We are resilient but that only goes so far.

Unfairness in the food supply chain and impractical, ill-conceived government policy, over many years, has seriously eroded farmer confidence.

A lack of investment and profitability has hampered the economic growth we know our family farms can deliver.

The family farm tax put forward by the Government in last year’s Autumn Budget has seriously put our way of life and the country’s food security at risk.

A pill made harder to swallow by the promise that changes to inheritance tax (IHT) wouldn’t happen and made worse by hikes to the other taxes we all pay.

That’s without even mentioning the door slamming shut on schemes to help us to continue to deliver for the environment, the impact of new trade deals with the USA an other issues.

Understandably the family farm tax is aimed at those abusing tax relief but it will have a huge impact on many farm businesses across the country.

That is not in doubt anywhere other than in the Treasury on the actual impact, and what is proposed continues to cause immeasurable worry and upset.

As a young farmer who has a hand in the family dairy farm, but is also pursuing a career as a solicitor, I understand there are some perceptions of us given where and how we do our jobs.

Given the right tools we can deliver real economic growth but the idea that farmers and other related businesses can afford to take the hit is a tough one to take and a poor reflection of the reality on the ground.

Asset rich and cash poor really sums up our position and without the land, our animals and the kit we can’t deliver growth, something we have a track record of, and put food on the table for people effectively.

Starting out in this industry is hard enough for the next generation without a potential five or six figure inheritance tax bill to pay on arrival - due to the loss of a family member.

The inflation of land values, caused by land use pressure, and the significant cost of machinery and raw materials makes for a toxic concoction for those of us looking to make our mark.

Food security must be a priority for government especially given global geopolitical and economic uncertainty, but it is clearly being undermined by these tax changes.

Pledges to cut the red tape burden and other measures to boost food production sound great but not when confidence and cashflow is desperately low and there is an IHT cloud over us.

The future could be very bright for our farms and young farmers coming through if we are not hamstrung at the first hurdle by ill-conceived policy and a blind willingness to ignores practical solutions.

Farmers up and down the country will continue to produce the best food we can and with that continued backing and support from the NFU, we will not go away on this issue.

We must continue to make the case to stop the family farm tax as it stands.