Rachel Reeves is to heap more financial pressure onto farmers (Image: Getty)

       Half of UK farmers have reconsidered their future in the sector due to a rise in financial pressures in the last year, new research has found.

       It comes as Rachel Reeves is set to increase the tax burden on growers, despite inflation and already narrowing margins.

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       From April 2026, taxes would apply to agricultural assets over ￡1million - or up to ￡3mn in "certain circumstances".

       Now, frozen potato manufacturer McCain has said that a survey of arable farming decision makers it commissioned has revealed that rising energy (35%) and fertiliser costs (32%), as well as environmental threats (36%), are having the biggest pressure on farmers’ finances.

       The firm added that financial pressures are not only affecting farm operations but are also the primary factor (55%) straining farmers’ mental health.

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       READ MORE: Rachel Reeves torn apart by boss of famous UK safari park - 'she's cost us ￡850k [REPORT]

       Farmers are already facing financial difficulties as inflation affects prices (Image: Getty)

       From April 2026, inheritance tax relief for business and agricultural assets will be capped at ￡1million, with a new reduced rate of 20% being charged above that.

       Earlier this month, Mo Metcalf-Fisher, director at the Countryside Alliance, told the Express that farmers are already having "difficult conversations" about the future of their land after the Chancellor presented her Budget in October.

       The policy, he added, will push farms over the edge, and the country's largest supermarkets, such as Sainsbury's Tesco and Asda, will have to switch to foreign imports of food.

       75% of farms are to be affected by the change, campaigners claim.

       In an effort to support its 250-strong network of farmers, McCain, has launched a new ongoing package of support for its growers, equating to an additional ￡30million investment over the next three years.

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       McCain says it is helping its potato farmers (Image: Getty)

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       This will "help ensure the long-term sustainability and resilience of British agriculture, which is vital to the country’s food security".

       The company added: "This package sits alongside existing measures, which includes working together with growers as they transition to regenerative agriculture practices and ensuring fair prices for their potatoes."

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       James Young, Vice President of Agriculture at McCain Foods GB, said, “British potato farmers are facing a myriad of unprecedented challenges from rising input costs to extreme weather events.

       "At McCain, we pride ourselves on the strong partnerships we have built with our 250 growers and are committed to supporting them.

       "We believe this package bolsters our ongoing collaboration with growers to help ensure the long-term sustainability of British agriculture.”