UK farmers facing “worst cashflow crisis for generations,” warns NFU president
Farmers across England and Wales are facing severe financial hardship, with many “genuinely worried” about whether they will make it to the end of 2025, according to National Farmers’ Union (NFU) president Tom Bradshaw.
In his first address to the NFU annual Conference, Bradshaw called on the government to “urgently correct” planned inheritance tax (IHT) changes announced in the government’s October budget. He stressed that farmers had faced “bad policy, geopolitics, unprecedented weather,” and needed support.
“Last year, I stood on a farm in Lincolnshire, surrounded by flooded land as far as the eye can see. Some members planted crops three times because the first two efforts got washed away. We’ve just had the wettest 18 months on record and one of the worst harvests ever,” he told delegates in London.
“This is a time when the government should be prioritizing food security, as they promised to do before the election. The government can and must create an environment which gives farmers the confidence and the ability to invest in food production for the future.”
Family Farm Tax
A main flashpoint at the conference was the Family Farm Tax — changes to IHT. From April 2026, a tax of 20% will apply to agricultural assets worth more than £1 million (US$1.2 million). Currently, farmland is exempt from IHT under the “Agricultural Property Relief” (APR) policy.
Bradshaw said: “As difficult as this is to hear, many older farmers are now facing the very real dilemma that, unless they die before April 2026, their children will face a Family Farm Tax bill they simply don’t make enough money to pay.”
“What a cruel position to put elderly people in with no warning, by way of a broken promise, and one the government must urgently correct! The Family Farm Tax is also economically wrong.”
The government says bringing farmland and other business property into IHT from next year will provide more money for public services. The move is expected to raise around £115 million (US$145.6 million) annually.
Jeers from the audience
A speech at the conference by environment secretary Steve Reed was repeatedly interrupted by protesters, with groans and jeers from the audience. He announced at the event that the government is launching a reform package to “boost farmers’ profitability.”
“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,” Reed told attendees.
“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.”
The package includes extending the seasonal worker visa route for five more years to give farms a pipeline of workers, backing British produce by having new requirements for government catering contracts to favor local farms and producers, and £110 million (US$139.2 million) investment in technology.
The government also plans to protect farmers in trade deals and strengthen Britain’s biosecurity by setting up a new National Biosecurity Centre to transform the Animal and Plant Health Agency animal health facility at Weybridge in England. The food industry has repeatedly criticized the government for its lack of resources to combat food security risks at Britain’s post-Brexit borders. The NFU has broadly welcomed the government’s latest plans.
