Why Farmers are protesting against the UK Government, March 2025

Written by Becky Wilson, 3rd Generation.

I wished to write a blog post to explain to those who aren’t 100% clear on the reason why farmers are protesting the UK Government’s proposed changes to inheritance tax (IHT) on family farms. This is a post which isn’t twisted by the media (or in some cases not even covered!) identifying that these changes could have devastating financial and operational consequences for farming businesses, many of which have been passed down for generations.

Land & Machinery Are Illiquid Assets

Farming is asset-rich but cash-poor. Most of a farm’s value is tied up in land, machinery, and livestock, not in cash or easily sellable assets. If the government reduces tax reliefs or increases IHT, families may be forced to sell off land, equipment, or even the farm itself just to pay the tax bill. 

Threat to Generational Family Farms

Many British farms have been passed down for generations and rely on Agricultural Property Relief (APR) and Business Property Relief (BPR) to remain viable. If the proposed changes reduce or remove these reliefs, the tax burden on inheritance could be so high that families can’t afford to keep their farms running.

From left to right: Toby Wilson, Dawn Wilson (nee Keene), Fred Wilson, Becky Wilson

A point which is key to understand is that farmers are custodians of the land for future generations, as well as custodians for all the habitats, wildlife and other ‘public benefits’ like footpaths. 

£1 Million Threshold is Unrealistic

The proposed £1 million exemption might sound generous, but it barely covers a small farm’s land and equipment, let alone an entire working business. For example:

  • A couple of tractors, combines, and machinery can easily be worth over £1 million. This was identified at the Farmers Rally on the 4th March with some of the machinery used to make part of the ingredients for a pancake being present. 
  • Farmland values have risen, making even a modest-sized farm exceed the threshold.
  • This doesn’t account for livestock, buildings, and everything else needed to run a farm.

Impact on UK Food Security

If family farms are forced to sell land or shut down, it reduces domestic food production, making the UK more reliant on imports. This affects:

  • Food prices (higher costs for consumers).
  • Sustainability (increased imports mean more carbon emissions).
  • Rural economies (jobs and local businesses depend on farms).

Basic Payment Scheme (BPS) Being Cut Overnight

The Basic Payment Scheme (BPS) is the government subsidy that has historically provided direct financial support to farmers based on the amount of land they farm. For years, it has been a crucial safety net, helping farmers maintain profitability in an industry where costs are high, and margins are tight.

  • The government removed BPS payments overnight, leaving farmers with the ability to receive up to £7,200 and cannot be exceeded. This is all dependent on acreage.
  • This is a huge financial shock, particularly for larger farms that relied on BPS as a key part of their income.
  • Worse still, BPS is set to completely disappear by 2028, leaving farmers scrambling to replace the lost revenue.

Farmers were already planning for this loss, looking at alternative income streams, but these overnight cuts mean they now have a short period of time to adapt with no buffer and little government support to fill the gap.

Sustainable Farming Incentive (SFI) immediately stopped accepting new applications

The Sustainable Farming Incentive (SFI) was promoted by the government as a cornerstone of the post-Brexit agricultural policy, designed to encourage and financially support farmers in adopting more sustainable practices. This included initiatives like improving soil health, promoting biodiversity, and other environmentally friendly farming techniques. The sudden stopping of new applications without prior warning has disrupted many farmers’ operational and financial planning, many of whom had already started making changes in anticipation of receiving SFI support.

This latest announcement raises real concerns within the farming community about the stability and reliability of agricultural support policies in the UK. The agriculture sector is crucial for the country not just economically, but also for our food security and environmental sustainability.

Farming is all about long-term planning, and these sudden changes create a financial void at the worst possible time.

Unfair Treatment Compared to Other Businesses

  • Many big corporations have ways to legally reduce tax burdens, while small family farms don’t.
  • Farms are long-term businesses, not speculative investments.
  • Farming families work all their lives on the land, yet the proposed tax treats them as if they are sitting on disposable wealth.

A bit more context … did you know?

  • Many farmers don’t pay themselves a ‘wage’ and often don’t enjoy retirement because they either love what they do or simply cannot afford to pay themselves!
  • Farmers don’t often have control over several factors that impact their production e.g. the weather nor the prices that they can sell their produce for, as markets are driven by global impacts. This means that farm businesses are high risk.

What Farmers Are Proposing 

  1. Fair inheritance tax policies that protect generational farming. Such as tax being ‘deferred’ and only becoming payable if the land is subsequently sold. So nothing is paid on inheritance, but if the next generation decide to sell (and therefore release the cash value of the land) they would pay tax. 
  2. Recognition that farming assets are essential to food production and not just “wealth”.
  3. The government to consult properly with farming communities before making changes.

This is why farmers are taking to the streets. Protecting their farms means protecting the future of British food and rural life!


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