'Farmers might be asset-rich but we're cash-poor'

A young farmer said the Government’s changes to inheritance tax were “bonkers" and would prove a “travesty” for family farms across the UK.

Chancellor Rachel Reeves announced during her Budget speech that inheritance tax would apply to farms worth more than £1m from April 2026.

Harry Suckling, 23, a fifth-generation farmer in Holbrook and chairman of the Suffolk Young Farmers, said: “Farmers are asset-rich but we’re cash-poor."

The Government said the change was only expected to affect about 2,000 estates each year.

Agricultural property tax relief had previously enabled small farms – including land, farm buildings, cottages and houses - to be handed down through generations.

Mr Suckling said: "Our family first came into farming in about 1939 and each generation has worked hard to put money back into the pot.

“They have then bought an extra piece of land for our family that has slowly grown to where we are today – but the Budget threatens to dissolve all of that and take it away.

“When my grandfather passes we will be looking at millions of pounds in death duties, so we’re going to have to sell off some of the land we’ve worked so hard for.”

According to Victoria Vyvyan, president of the Country Land and Business Association, as many as 70,000 farms could be adversely affected by the £1m cap.

Mr Suckling added: “It's bonkers, it really is. I can see £1m-worth of assets from my window and government seems to think that makes us rich.

“We are asset-rich because we have to be to farm productively, but we are cash-poor, so it needs to be understood that we are not wealthy people.”

Mr Suckling also fears changes to inheritance tax could price younger farmers out of carrying on the legacies of their families.

“Heaven forbid something happened to my father, because I’d have to pay £4-5m of death duties at 23,” he said.

“So, that would mean I would have to sell off a substantial amount of this farm because it would be an unviable business for me to carry on.

“Small, family farmers are the backbone of this country, so this is such a travesty.”

Following Wednesday's Budget announcement, the Government said it would be maintaining the current £2.4bn level of farm payments for England in 2025/26.

Food security Minister Daniel Zeichner said: “Our commitment to farmers and the vital role they play to feed our nation remains steadfast."

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