Young Farmers “Worried” for Their Parents as Inheritance tax Exemption Removed.

**Trigger warning - Mentions of Suicide**

Gen z has a reputation for being the most anti-capitalist generation yet. We seem to have an advantage in being able to see past the materialistic goals that have been set and enjoy throwing a casual “eat the rich” out there every once in a while. Most of us hear about the changes to inheritance tax and jump for joy assuming that this will only affect the top 1% but has the current labour government made a big error in how they’ve gone about the new changes leaving Farmers in a tricky situation?

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So what is inheritance tax?

As defined by gov.uk Inheritance tax is “a tax on the estate (the property, money and possessions) of someone who’s died.” This only applies to estates worth more than £325,000. This means that the average person doesn’t really need to think about it as only about 4% of the UK population actually have to pay it.

The wider idea about the tax is that it helps to redistribute wealth by taxing large estates and using the money collected towards public services. It is meant to encourage a more level playing field by making it more challenging for wealth to be held within a few families or individuals and takes that money which otherwise would sit there and pumps it back into the economy.

However due to the pure amount of land needed to run a farm this tax often catches farmers and their families out on family farms. Although inherited agricultural assets that were worth more than £1 Million were previously exempt from paying this, now as of April 2026 they will have to pay the tax at 20%, half of the usual 40%.

Arthur, A British farmer explained the huge toll it’s having on family farms.

“The new tax means that family farms that have been inherited through several generations and hundreds of years will now likely have to be divided or sold off. In a time where British agriculture is already in the mud, if you’ll pardon the pun.”

The cost of essentials like feed, fuel, fertilizers, and energy has increased significantly in recent years, straining farm budgets. Family farms, particularly smaller ones, often operate on slim profit margins, meaning farmers only keep a small percentage of each pound earned as profit after covering all expenses. which makes it difficult to absorb these rising costs without affecting their financial stability.

Alex a young farmer from Gloucestershire said “Farmers and our families often don’t have a high profit turn over meaning that there is no financial buffer for emergencies or unexpected expenses, such as crop failures, machinery breakdowns, or extreme weather.”

“It’s why I’m not surprised farmers are so much more susceptible to depression and anxiety. As a young woman me and my mum are much more able to talk about and cope but as a stereotypical, bottle it up type farmer there are times where I’m worried for my Dad.” She added, “You hear of these other families who lose their Dads and Grandfathers and it’s all so sudden but absolutely linked to the financial stress. They love their jobs and after generations of their families farming before them and now these extra fees on top they just can’t see any way out.”

RABI’s Big Farming Survey showed that in 2021 36% of farmers in the UK are likely to be depressed, while 47% are constantly struggling with anxiety. While in another survey by farmers weekly they found only 55% of farmers feel positive about their mental health

Percentage of farmers who feel positive about their Physical Health

 Percentage of Farmers who feel positive about their Mental Health

Arthur also mentioned these worrying trends, “we have all been trying to diversify and look at ways to just keep farming, let alone turn a profit and be able to plan ahead to allocate money for this. When prices are consistently being driven down by supermarkets and consumers, bills continue to rise and the cost of running/maintain equipment continues to go up. There’s a lot of pressure on families and people that can’t take much more. In my opinion that is why the suicide rate in farmers is so high and sadly I think this is only going to get worse now.”

According to the Office of National Statistics, there were 36 suicides recorded in England and Wales in the farming and agricultural industry alone in 2021.

The Institute for Fiscal Studies claims only a "remarkably small number" of farmers will be affected by the chancellor's change to agricultural inheritance tax.

Rachel Reeves is planning to limit tax relief to 1-million pounds on family farms - sparking fears of food price rises and the selling of businesses.

She insists her 40-billion pound tax-raising budget will "fix" the economy's foundations after being accused of breaking Labour's manifesto.

If you think you or anyone you know Is struggling with thoughts of suicide you can text SHOUT to 85258