The National Farmers Union will hold its annual conference on Tuesday (Image: Getty)
Farmers have insisted “we will not go away” until ministers “do the right thing” by axing the family farm tax.
Many food producers are “genuinely worried” about how they will survive to the end of this year, the National Farmers Union warned ahead of its (NFU) conference on Tuesday.
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Rachel Reeves will also be told that there is no economic growth without food.
Growers face a cash flow crisis and “rock bottom” business confidence, the NFU said.
This has been compounded by the Chancellor’s inheritance tax raid preventing investment and growth.
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NFU President Tom Bradshaw is expected to say in a major speech: “Last week, all the UK farming unions and several other organisations took a solution into Treasury. And what happened? They simply sent us away, with the sound of a slamming door ringing in our ears.
“And we will not go away, we will not stop, we will not give in. We will fight the family farm tax until ministers do the right thing.
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“Then we can move on. Because it’s not like producing the nation’s food has gotten any easier in the last 12 months. I have never seen such a crisis of confidence in our industry.
Farmers will demand the Government reset their relationship following the “hammer blow of the unexpected” family farm tax.
Mr Bradshaw will add: “There were only 87 words in Labour’s manifesto about farming, but some of those words gave us hope for the future; policies on imports, binding targets for British food for the public sector, a recognition that food security is national security.
“We recognise these are still early days for a new government, but new ministers had hardly found their way to their offices when they broke their first promise. And it’s one which overshadows all else, wiping out our ability to plan, to invest and, often, to hope. It hangs over our farms, our families, our futures: the family farm tax.
“This policy is morally wrong. I have received hundreds of desperate messages, taken hundreds of panicked calls.”
He will say he has particular concern for older farmers who have put “blood, sweat and tears” into their livelihoods.
Mr Bradshaw will say: “Most of all I fear for elderly farmers. This isn’t just money, this is blood, sweat and tears. The farm was their life’s work, but as they have grown older, the farm has also become their pension – because that’s what they were told to do. That all changed without warning.
“The family farm tax is also economically wrong.”
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Mr Bradshaw was among farming bosses who met with Treasury Minister James Murray and Farming Minister Daniel Zeichner last week.
He said: “This government needs a reset with farmers, where they face up to the reality of how much the industry is struggling. Bad policy, geopolitics and unprecedented weather have left some sectors of UK farming in the worst cashflow crisis for generations. Many farmers are genuinely worried about how they’ll make it to the end of 2025.”
The Chancellor in October announced that from April 2026, combined agricultural and business property assets up to ￡1 million will still receive 100% relief but anything above that will be taxed at an effective rate of 20%.
The Daily Express has demanded the Government U-turn on its inheritance tax raid through the Save Britain’s Family Farms crusade.
The Confederation of British Industry will warn Ms Reeves there is no growth without food.
Its chief executive Rain Newton-Smith will use her speech to the NFU Annual Conference in London to caution that without backing the farming sector. “Any growth plan will tumble and any Industrial Strategy will fall flat at the first hurdle.”
Environment Secretary Steve Reed is also set to address the conference in central London, where he is expected to outline a series of policies the Government hopes will boost profits for farmers – and improve relations with the sector.
They are expected to include new requirements for government catering contracts to back British produce, a multimillion-pound investment in technology, extending the seasonal worker visa programme, strengthening controls on animal disease, and protecting farmers in trade deals.
Mr Reed say: "The underlying problem is that farmers do not make enough money for the hard work and commitment they put in.
“I will consider my time as Secretary of State a failure if I do not improve profitability for farmers across the country.
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“My focus is on ensuring farming becomes more profitable because that’s how we make your businesses viable for the future. And that’s how we ensure the long-term food security this country needs.”
Mo Metcalf-Fisher said: “The devil will of course be in the detail with many of these positive pledges. The concern, however, is that the massive elephant in the room- the family farm tax- continues to cause considerable anxiety and fear for many farmers.
“The Government are going to have a difficult time mending the already fragile relationship between countryside and Whitehall until this damaging policy is thought through, while there’s still time”.