Britain’s farming industry is facing a crisis, with over a third of UK farms at risk of going out of business within the next five years—rising to a shocking 56% by 2035, according to a major new survey.
The study, commissioned by finance advisory firm Ashbridge Partners, surveyed 2,000 British farmers and examined the impact of the Labour government’s controversial inheritance tax (IHT) proposals.
The findings paint a bleak picture for the future of British agriculture.
Inheritance Tax Hike Could Devastate British Farming
At the heart of the crisis is a major change to agricultural property relief (APR), due to take effect from April 2026. Under the new rules:
- 100% IHT relief will only apply to the first £1 million of combined agricultural and business property.
- Any land or assets over this threshold will face up to 20% inheritance tax, payable in instalments over 10 years (interest-free).
- A couple will be able to pass on up to £3 million free of inheritance tax.
For many farming families, this change represents a crippling financial burden.
The survey found that:
- More than 1 in 10 farmers will face IHT bills of over £1 million.
- 31% expect to pay over £500,000 due to the tax hike.
- At the average farm business income of £86,000 per year, it would take inheritors 11 to 12 years to clear a £1 million IHT bill—longer than the government’s 10-year instalment option.
Thousands of Farms Above the Tax Threshold
Despite government claims that the changes will affect only “significantly less than 500 estates per year”, the survey blows this figure apart. A staggering 125,400 farms—representing 60% of those polled—would fall above the new tax relief caps.
For many, the only way to stay afloat will be to sell off their land and assets:
- 41% of farmers will need to sell at least half of their farm business.
- 39% will be forced to sell off farmland.
- More than half expect they will have to sell to corporations or wealthy investors, risking the traditional British farming industry falling into the hands of global tycoons.
And it’s already happening. Industry reports show that in the past 12 months, more than half of farmland purchases in England have been snapped up by private investors, institutional buyers, and so-called ‘lifestyle farmers’—leaving traditional British farmers struggling to compete.
Farms, Machinery, and Even Farmhouses Under Threat
The financial fallout of these tax changes could be devastating:
- 17% of farmers will need to sell farm buildings.
- 7% will be forced to sell machinery.
- 4% are considering selling other properties.
- 27% will have to liquidate shares and investments to cover tax bills.
- Nearly 1 in 10 will even have to sell their own farmhouse.
The impact will extend beyond individual farms. 23% of farmers say their farm shops are at risk, meaning over 360 shops could close or change hands—a huge blow to rural communities and local food supply chains.
Farmers Sound the Alarm: ‘Scary Times’ for UK Food Supply
Speaking to Farming UK, Mark Ashbridge, managing director of Ashbridge Partners, issued a stark warning about the future of British farming under these proposals:
“With over half of UK farms at risk in the next 10 years, these policies simply aren’t affordable or sustainable for the majority of farmers. If these proposals go ahead, we expect to see a wave of farmers seeking loans and exploring other forms of raising capital to cover these IHT costs.”
Prominent British farmer and farming advocate Olly Harrison was even more blunt in his assessment:
“Any politician’s priority should be to keep its nation fed. I’m shocked by the lack of understanding by government of what UK farms do, three times a day, every day for everybody in the country. These are scary times, and not just for farmers. The question is, will we see ration books again—or even a ration app?”
With concerns growing over food security, rural livelihoods, and the survival of family farms, pressure is mounting on the government to urgently rethink its inheritance tax overhaul. Farmers, industry leaders, and rural communities are now bracing for one of the biggest shake-ups in British agriculture in decades—but at what cost?
For more details visit: https://www.farminguk.com
