NFU hit by farmer backlash at Lamma over IHT

A group of frustrated farmers confronted the NFU at the Lamma machinery show on Wednesday (14 January) following the union’s decision to stand down its Stop the Family Farm Tax campaign.

About 40 farmers gathered at the NFU stand at the NEC, Birmingham, at about 2pm, to voice anger and frustration over what they see as the union’s retreat following changes to the government’s proposed inheritance tax (IHT) reforms.

The action follows the Labour government’s 23 December announcement that it would raise the proposed IHT threshold on agricultural and business property from £1m to £2.5m per individual, or up to £5m for married couples and civil partners.

See also: Further farm IHT changes ruled out by Reynolds

In response, the NFU said it would end its 14-month long public campaign which had urged the government to abandon the tax reforms in their entirety, that are due to take effect from April 2026.

Instead, it is seeking further amendments as the legislation wends its way through Parliament.

NFU president Tom Bradshaw told Farmers Weekly the higher IHT threshold had eased the burden for many farms, but the NFU still opposes the policy and has paused its campaign to focus on areas where change is currently achievable.

Speaking at last week’s Oxford Farming Conference, Defra secretary Emma Reynolds ruled out any further concessions, saying the policy had been shaped by “constructive engagement” rather than those “sounding their horns”.

Despite the minister’s comments, many farmers and opposition MPs believe direct and indirect action played a role in the government’s climbdown.

The farmers at Lamma said they wanted to speak directly with NFU president Tom Bradshaw and deputy president David Exwood, but neither was available.

Mr Bradshaw was not attending, and Mr Exwood, although at the event earlier, is understood to have left for another engagement.

Key concerns ignored

Farmers claimed the NFU’s decision to step back from its campaign undermined their key concerns, notably the absence of an anti-forestalling clause to protect elderly and terminally ill farmers from falling foul of the seven-year gifting rules.

Dan Willis, a fifth-generation arable farmer from near Newbury, Berkshire, who farms 809ha in partnership with his mother, said the omission was critical.

“Not to include the anti-forestalling clause has left elderly and vulnerable farmers wondering if they’re better off taking their own lives; it was the most important part,” he said.

“My mother is in her mid-80s and without it we are extremely vulnerable. For 45 years, the best advice was to keep hold of your land. This has been changed overnight, with no time for elderly or infirm farmers to plan.”

Marriage pressure

He noted that the proposed policy change to the thresholds also discriminates against those couples who are unmarried or not in a civil partnership.

“The policy, as things stand, could force single farmers into marriage to access the full £5m allowance. That makes some people feel very uncomfortable,” he said.

Suffolk farmer Russel Abbott © Russel Abbott

Russel Abbott, who farms 81ha in Suffolk with his 81-year-old father, said their business was likely to be only just under the threshold once machinery was included.

“There should be something for elderly farmers,” he said. “Why not have a grace period to allow them to get their affairs in order?”

He pointed out that the government had been offered alternative revenue streams from land sale for non-succession of agricultural generations, which would have raised the Treasury more money than the current plan.

‘Partial win’

Chris Lerwill, a beef farmer and abattoir owner based in North Devon, said the NFU had mishandled the lobbying effort on behalf of industry.

“They should have said £2.5m is a ‘win’, but not good enough, and kept fighting,” he said. “Instead, they pulled the rug on the campaign and made a decision for the whole industry when they only represent a proportion of farmers.

“The moral argument will win out in the end.”

Richard Wheeler, a beef and dairy farmer from Worcestershire and long-standing NFU member, said the mood at Lamma reflected growing farmer discontent.

“The NFU stand at Lamma was the busiest I’ve seen in 10 years,” he said.

“Many members feel appalled by the stance taken. I fear this view is widespread. Many farmers even question the current NFU leadership.”

NFU campaign

NFU president Tom Bradshaw said: “After 14 months of campaigning and lobbying, the changes to raise the tax threshold from £1m to £2.5m – which if combined with a spousal transfer take that to a potential £5m – has greatly reduced the tax burden for many family farms. It was a result many said wasn’t achievable.

“But I want to be clear – the NFU remains opposed to the policy. It remains the wrong approach. We know there are still farming families who could face a large tax bill.

“We also know a full reversal will not be possible in the short term, and we have numerous other vital areas where our members want us to lobby.

“As a professional lobbying organisation, we have to focus our efforts where and when we have the ability to create change – unfortunately that time is not now.

“This phase of our public campaign has ended, but we will still seek to get this policy scrapped at the next political opportunity, and we’ll continue to engage with political parties on the issue.

“In the meantime, the changes achieved have given us stronger foundation to build on and grow. We go into 2026 with a renewed focus on delivering solutions for the many challenges our sector continues to face and to make a positive difference for our members.”