Shropshire Farming Talk: Profound impact policy could have on livelihoods
As British farmers took to the streets of London to protest the government's controversial 'Family Farm Tax,' I feel compelled to speak out about the profound impact this policy could have on farming livelihoods.
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The proposed tax, set to take effect in April 2026, will introduce a 20 per cent inheritance tax on agricultural estates valued over £1 million.
I’m deeply concerned that this measure could force family-run farms to sell off portions of their land just to meet tax obligations, jeopardising the future of family farming in the UK.
As the owner of NDC Foot Trimming, I see first hand the pressures that farmers face on a daily basis.
Many of my clients are already operating on razor-thin margins, navigating rising input costs, labour shortages, and unpredictable market conditions.
This inheritance tax could be the final straw for many of them. If farmers are forced to downsize or sell off land, it’s not just their families that suffer—it’s the entire supply chain, from equipment suppliers to service providers.
The Country Land and Business Association (CLA) has emphasized the severity of the situation, pointing out that a typical 200-acre farm could face an inheritance tax liability of £370,000 — an amount that could wipe out over a decade’s worth of profits.
Many family farms are asset-rich but cash-poor, meaning they would struggle to meet these tax obligations without selling off vital resources. For businesses like mine, which rely on the health and sustainability of the farming community, the ripple effects could be profound.
I’m hearing the same concerns from farmers I work with every day. They warn that this tax threatens not just individual farms but the broader agricultural economy. Family farms aren’t just businesses — they’re lifelines for rural communities and vital contributors to our food security. As the April 2026 implementation date looms, I’m joining others in calling for a rethink of the policy to prevent long-term harm to the sector.
This isn’t just a tax on inheritance — it’s a tax on the future of farming itself. I believe it’s vital that the government reconsiders this policy before its scheduled implementation in 2026.
by Nick Challenor is the owner of ND Challenor Professional Livestock Services.
