English dairy farmers are sounding the alarm as the UK government prepares to implement new farm tax measures, which many believe could devastate family-run agricultural businesses. At the forefront of this concern is Adam Stanbury, a third-generation farmer based near Barnstaple, Devon. Last month, Stanbury joined hundreds of farmers who took to the streets of London, driving their tractors to protest outside Downing Street.
Worried about the looming financial impact of these changes, Stanbury voiced his fears candidly. "They were looking like a duck out of water, it's not their natural habitat, but they've got to do something," he told AFP. The crux of his anxiety revolves around new proposals set to cap the inheritance tax exemption at £1 million ($1.23 million) starting from April 2026. Under these new rules, farms valued above this threshold would incur a 20% inheritance tax—a significant shift from longstanding policies aimed at facilitating family farm transfers.
Adding to the urgency, Stanbury examined his family farm's potential tax liabilities, estimating his daughters could face as much as £400,000 in taxes upon his death due to the collective value of their assets, which includes their herd of 750 dairy cows and extensive landholdings. Even though the government has proposed spreading tax payments over ten years, Stanbury remains skeptical: "It doesn't work as margins are small in farming," he explained, acknowledging the tough financial climate.
This new tax policy has stirred controversy, particularly among farming unions and local farmers, who argue it would disproportionately affect the 500 largest farming operations but, as Stanbury emphasizes, it threatens family farms like his. "What happens when we do have to sell bits of land off, or the whole farm off, to pay an inheritance tax -- where's the land going to go? It's going to go to a multinational who can afford it," he remarked, calling the proposed tax "unfair."
Historically, the exemption for farmers has enabled smoother transitions between generations, but now, pressures from various directions complicate things. Existing issues such as rising energy costs, increased price competition from large retailers, and the impacts of Brexit—particularly on agricultural exports—make farming increasingly precarious. These adversities were compounded last year when government figures revealed nearly 17% of farms reported no profit, with only 41% managing to earn more than £50,000.
Economist Arun Advani has argued the government’s stance is misread, stating, "of the farms benefiting from current exemptions, less than half had received trading income from agriculture at any point just before their deaths." He noted many individuals were receiving rental income instead, painting some farmers as landlords rather than active producers. This viewpoint is at odds with the experiences of farmers like Stanbury, who lives daily with the weight of raising livestock and managing land sustainably.
At the recent annual conference, agriculture minister Steve Reed attempted to address concerns, arguing, "I'm sorry some of the action we had to take shocked you, but stable finances are the foundation of the economic growth needed." He highlighted the government's suggested budget of £5 billion over two years, earmarked for environmental adaptations and diversifications to support farmers facing adversity.
Yet, many farmers like Stanbury feel these measures are insufficient. Tom Bradshaw, president of the National Farmers' Union, echoing distressed sentiments, asserted: "I just don't think the Secretary of State has grasped just how serious the situation is on the ground." His comments reflect broader concerns among farmers who fear imminent policy changes may seal their fates rather than facilitate growth.
Stanbury's current reality presents him with hard decisions, particularly about the future of his daughters. "Lucy, my eldest daughter, regularly helps me on the farm, but I see her exploring opportunities beyond this—perhaps photography or international development instead of continuing our farming tradition," he lamented. While he desires to preserve the farm for his children, the financial burden posed by the new tax prevents him from offering them the future he envisions.
With these shifts underway, Stanbury is left wondering what legacy he can pass on to his daughters. The fear of financial strain and the possibility of downsizing become ever more pressing as the April 2026 deadline approaches. For Stanbury, who produces 3.4 million litres (750,000 gallons) of organic milk annually, the prospect of selling off land simply to meet tax demands feels deeply unjust. He comments, "I'm not saying farmers are seeking more support—but we need to be considered when policies are drawn up."
The impending changes mark yet another chapter for UK farmers, who contend with fluctuated market conditions, regulatory pressures, and now, government intervention through taxation. The situation remains fluid, and as the 2026 deadline looms, it’s clear farm families like Adam Stanbury’s are holding their breath, hoping for relief.