Around 40 protesting farmers have caused havoc in Oxford city centre as Environment Secretary Steve Reed launched a “new deal” for UK agriculture, aimed at focusing more on food production, profitability and the clearing of planning red tape for farmers. Protesters were angered by recent changes to agricultural inheritance tax that were announced in the budget. Inherited agricultural assets worth over £1m, which were previously exempt, will soon be liable to tax at a 20% rate, half the usual inheritance tax rate.
Across the country, many farmers argue that they may have to sell up to pay the tax, as they are asset rich but cash poor, with land, crops, and livestock but often short-term cash flows. The inheritance tax is not the only issue, as business tax and the issues of crops in the ground are also creating additional hardships for the farmers.
Outside the conference, protest organiser Caroline Graham gave a statement to the BBC, saying the government’s current policies were “crucifying” farmers. The farmers are concerned that they may not even be able to survive until the end of 2025, given the current environment. In response, Mr Reed offered farmers a “new deal,” aimed at making them more profitable and supporting them with diversifying their businesses with help from farm shops, holiday rentals, on-site solar panels and wind turbines.
Mr Reed additionally stressed the importance of delivering Labour’s manifesto pledge, which would ensure that 50% of food in schools, hospitals, army bases and prisons paid for with public sector money would come from local farms or would be produced to high environmental standards. This particular measure is said to be liable to give UK domestic food producers an extra £2.5bn. However, the “new deal” given to farmers by Mr Reed has been viewed with trepidation by the National Farmers Union (NFU), with its president Tom Bradshaw warning that the plan “fundamentally fails to recognize that the industry is in a cash flow crisis with the lowest farmer and grower confidence ever recorded
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