Many Lincolnshire farms 'very close to edge' after tax rises

Lincolnshire family farms could disappear completely if new tax rises aren't reversed, senior councillors have warned. The National Farmers Union are rallying in London today (November 19) to protest an increase in inheritance tax, which farms were previously exempt from.

Local farmers brought a tractor to Lincoln's County Hall, where the council's Executive wore countryside gear in support. Despite government promises the tax changes wouldn't affect most, they all painted a dire picture for the future of agriculture in the county.

Ian Willox, who farms in Saxilby, said he would likely have a £800,000 to £1m tax bill to hand his farm to his son James. "Even spread over ten years, that's £100,000 a year - we're not making those profits," he said.

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"Every farmer I've spoken to is looking at a similar amount. We put money into 60 or so different local companies; now there's no incentive to invest because we'll get taxed on death.

"The government need to think again. They've backed themselves into a corner - they can either look like fools or feed the country. As we saw in Covid, you don't need much panic buying before the shelves are empty."

Council leader and former farmer Martin Hill (Con) warned about the serious consequences of the tax rises. "If it carries on, most family farms may disappear and be replaced with corporate entities," he said.

"We will lose all those farms which have knitted together the social fabric for generations. It's a big part of Lincolnshire's economy. And people don't realise how much they do for the environment and communities, as well as producing food.

"The amount this tax will raise is peanuts. They need to stop rich people buying up the farmland without hitting family farms."

Councillor Colin Davie (Con), whose father owned a herd of dairy cows, said: "We will lose a number of farms in Lincolnshire. There's a lot of people very close to the edge right now. If they don't see hope this will get reversed, some will make some very hard decisions in the New Year.

"This is coming into effect in two years time, so people have to plan. Many people I know in their 60s are coming up to retirement. They're going to have to make decisions quickly."

He said he had seen 15 farms reduced to just one in his area, as farmers sold up. The Chancellor announced in the Budget that inheritance tax relief for farms will be limited to £1m, meaning it could cost farmers millions of pounds to hand down their estate to their families.

The government says it will only affect around 500 farms each year, but the NFU says it will be thousands. Environment Secretary Steve Reed said: "We've had to ask those with the broadest shoulders to pay a little bit more", and most farms wouldn't see a difference.