Farmers ‘Bewildered and Frightened’ by Proposed Inheritance Tax Changes, Report Finds

Farmers across England have expressed deep concern over the government’s proposed changes to inheritance tax, with many questioning the future viability of their family businesses, according to a new independent review. The long-awaited report, commissioned by the government to examine farm profitability, was published on Thursday and includes 57 recommendations aimed at improving productivity, investment, and resilience in the agricultural sector.

The report’s author, Baroness Minette Batters, former president of the National Farmers’ Union (NFU), warned that there is “no silver bullet” to making farms consistently profitable. She noted that while the recommendations provide a roadmap for strengthening the sector, farmers remain vulnerable to a combination of financial pressures, market volatility, and policy changes.

One of the most contentious proposals relates to inheritance tax, which many farmers fear could threaten the survival of family-run farms. “Farmers are bewildered and frightened,” Batters said. “They are asking whether it will even be possible to hand their businesses down to the next generation.” The uncertainty has fueled anxiety in rural communities, where farms often represent both livelihoods and multi-generational heritage.

The report also emphasizes the importance of collaboration between the government and the farming and food industries. Environment Secretary Emma Reynolds highlighted that the findings would inform future policy and pledged closer cooperation. “We will work much more closely with farmers and food producers to ensure policies support growth, sustainability, and resilience,” Reynolds said.

Key recommendations in the report include measures to increase investment in technology, improve supply chain efficiency, and promote environmentally sustainable practices. While these proposals are designed to strengthen farm profitability, the report acknowledges that implementation will require careful planning, long-term commitment, and support from both the public and private sectors.

Experts say that farming in England faces a complex set of challenges. Beyond inheritance tax, producers must navigate rising input costs, labour shortages, unpredictable weather patterns, and shifting consumer demand. These factors contribute to financial uncertainty, making the government’s guidance on inheritance and succession planning particularly critical.

Farmers and rural organizations have welcomed the report for highlighting the sector’s difficulties but have urged swift action to provide clarity on tax changes and practical support for succession planning. Many argue that without timely intervention, England risks losing family farms and the communities that depend on them.

As debates continue in Westminster, the farming community faces a period of uncertainty. The recommendations in the report offer a framework for improvement, but success will hinge on effective collaboration, targeted investment, and clear communication from the government to address the fears of farmers worried about their businesses’ futures.