Dorset NFU say changes to inheritance tax will stop next generation of farmers
The inheritance tax being imposed on farmers has been described as a “nail in the coffin” for the sector
Last updated 8th Nov 2024
Dorset farmers have threatened to hold a mass protest in wake of new inheritance tax scheme.
From 2026, farms will fall within inheritance tax and inheritors will have to pay 20% on any agricultural property over £1million.
Previously, agricultural property such as land and property could be passed to future generations free of charge.
Chancellor Rachel Reeves said the change would affect "very wealthy landowners”, some of whom buy land to avoid paying inheritance tax.
But farmers across the county say the proposed threshold of £1million will affect 70% of farms.
Tim Gelfs, deputy chair of the NFU in Dorset, said: “The average size of a farm today is roughly 200 acres and goes for around £10,000 an acre, so you're at £2million just for the land, not including any property, machinery or animals.
“Land values are at an all-time high and there seems to be a trend for people to own land.
“We're seeing a lot of people coming out the city with wads of cash and buying big acreages especially in Dorset.
“It's far too easy to go above that thresholds even small family run farms so a lot of businesses will have to sell up completely or sell up a significant amount of their land.”
The poultry farmer from Beaminster fears the impact these changes will have on food security in the country.
He said: “Farming is a way of life for many people, they're born into it and if these people leave the sector, we will be producing less food.
“Every farm we lose, we're losing a set of skills that can't be replaced overnight and if you look at the state of our agricultural colleges, there aren’t many young people coming through anymore.
“The investors and rich that are leaving the city and buying land also don't want to see much farming going on so we will definitely see dropping food production.”