Treading a fine line

Public support for farmers remains high following the autumn Budget. Let’s keep it that way, says Fen Tiger

When times are tough, farmers stand together. And that is exactly what we did after the autumn Budget delivered a devastating blow to our livelihoods.

The government decision to impose a 20% inheritance tax on farming assets worth more than £1m is a shameful betrayal of promises made by Keir Starmer as he sought our votes so he could become Prime Minister.

Determined

The peaceful protests which brought thousands of farmers and hundreds of tractors to the streets of London are to be applauded. After all, if we don’t stand up for what is right for farming, who will?

Yet the government remains determined to push through the inheritance tax changes – and other Budget measures that will hit farming hard. These include increasing the tax on pick-up trucks and the faster phase-out of the basic payment.

I oppose these Budget measures as much as the next farmer. But I find myself asking: why were so many of us surprised that a Labour government launched a tax raid on farming families in the first place?

It never pays to take a politician’s promises at face value – especially when it comes to money. And the Labour Party has never been a fan of inherited wealth. And nor does it particularly like farmers.

Farming message

It is clear we must do more to get the farming message across. But there is a fine line between staging properly policed protests on the streets of London and blockading Britain’s ports and motorways.

The London protests were a show of strength and unity. And a large percentage of the public is on our side. But people – like politicians – are fickle. And we must remember that public support can be lost much more easily than it can be gained.

Many people simply don’t believe farmers are cash poor. All they see are fields, countryside, landed gentry and wealthy estates. It’s an outdated view. And most are unaware that farming typically generates less than 1% return on investment.

Neither do they understand that many of us are tenant farmers – we don’t even own the land we farm. A 20% inheritance tax for us is simply unaffordable.

Unaffordable

It’s a bitter pill to swallow – especially for older farmers expecting to pass on the family farm to the next generation tax free, only to be told that the rules have changed and they now face a huge tax bill.

Yes, the Budget could force some farming families to bring forward a succession plan sooner – and that could indeed benefit the younger generation. But that doesn’t help farming families unable to meet inheritance tax gifting rules.

Little wonder many farmers are now asking whether there is any point in investing in their business. Instead, they are turning to off-farm investments because food production profits are so thin.

It’s not a rosy picture at all – especially for families who have eked a living from the land they love for generations. But let’s try to keep the public on side – rather than taking action that will turn them against us.