How the new tax budget is reshaping life for farmers in Yorkshire

I talk to George Gill, a local farmer and ex-chairman of Boroughbridge Young Farmers, about the new inheritance tax, mental health in rural communities and the future of UK farming.

[Content Warning: Suicide]

The new Autumn Budget, unveiled last month, is set to drastically impact farmers in the UK. From April 2026, agricultural assets worth over £1million, in some cases £3million, will be liable for 20% tax with the aim to only affect the wealthiest landowners and stop the richest from buying tax-free land.

 Daniel Zeichner, Minister of State for Food Security and Rural Affairs, argued that reforming the agricultural policy would improve rural communities who need a better NHS, affordable housing and public transport. He explained in Parliament that:

“The vast majority of farms will not be affected. They will be able to pass the family farm down to their children just as previous generations have always done. It is a fair and balanced approach that protects family farms while also fixing the public services that those same families rely on”.

And yet, farmers across the country and spokespersons for the National Farmers’ Union (NFU) have strongly disagreed with government statistics. They have warned that the new budget will disproportionately affect small family farms that are asset-rich and cash-poor. NFU says that only 34% of farms are under £1 million net worth which differs vastly from Environmental Secretary Steve Reed’s prediction that “three-quarters of farmers will pay nothing as a result of the changes”.

It is also worth noting that every farm will have the added expenses of accountants and solicitors to check if they meet the tax requirements and organise succession planning.

In the UK, research has suggested that farmers have a greater risk of mental illness and suicide, which can be attributed to stress, rural isolation and stigma and can vary depending on age and income. In 2018, the Mind Your Head campaign was launched to improve awareness of mental health in farming communities. Research by Yellow Wellies found that 95% of young farmers believe that mental health is the biggest hidden problem facing farmers today. Recently there have been rising rates of suicide linked to financial concerns. 

I spoke to George Gill, a local farmer from Boroughbridge about how the new inheritance tax would affect himself and his family. George, 30, works with his father, 60, on a fifth-generation farm that’s been in their family for 110 years. With 2000 pigs, 600 lambs and 330 acres of arable land, George and his father farm the land themselves with no other staff, having lost his grandad the year before.

When asked how the new inheritance tax would affect his family’s ability to keep the farm in the future, he explained how land prices had sky-rocketed in the last decade, which meant that they were sitting on a large amount of assets while still making a relatively small profit.

To be specific, the farm turns over 1.6% profit (about £80,000/annum). With the new budget, George explained how he would have to work for 10 years with all profits going to paying the inheritance tax off and interest.

I wanted to begin by asking if this will affect most of Yorkshire’s farms.

“Oh, definitely. Directly or indirectly. Even if you’re not affected, [there are] solicitor fees and accounting fees to pay to make sure everything is in order. Gift it over 7 years [so] the owner, they have to live for that time. I’ve had quite a few meetings with older fellas in [their] 80s, they’re worried they haven’t got 7 years to live. It will impact the farmers who have had a sudden death in the family [or] who have not had time to sort out succession plans.”

Do you feel the policymakers behind the tax understand the challenges farmers face?

“Not at all. The figures are a bit vague. They say it will only affect 24% of farmers but NFU’s own studies show more like 70%. They just haven’t had the talks with NFU previously.”

“There is an issue, 55% of arable land last year was not bought by farmers. There are a lot of outside investors buying land. It is a massive issue. But it seems like it affects small family farmers like myself. The large corporations got the best solicitors possible – they’ll find a way around it some way or other.”

“Small little farmers don’t necessarily have the resources to put those things in place.”

What do you say to the public who have to pay 40% of inheritance tax?

“Oh, 100% understand that. It’s a really tough discussion to have. I wouldn’t be happy if I had to pay 40% inheritance tax. Like I say, 5 million pounds of assets we do not see. 80k / year. 100% understand the public’s opinion. I read a lot of things with people saying “Oh, it must be really hard to inherit a £5-6 million estate” but that is all on paper and I dare say there are many people who would want to work 10 years for no profits whatsoever.”

“It’s really tough to talk about. You don’t want to sound really arrogant, so many other people are struggling as well.”

What would make this tax fairer?

“I think that if you can show that you farm this land yourself that would be brilliant. It is so hard to try get young lads to come into the industry just because of the lack of money. Like young lads can go drive a wagon and get paid nearly twice as much as they can do working on the farm. It’s hard, long hours, tough work.”

“It is going to hit the family farms more than big corporations that, like I say, have the resources to make sure they can pass it through freely.”

“We’d be so much better off selling the land and living off the interest – it will return much better than farm profits but it’s a way of life… My dad’s put his life into the farm to try and pass it down to the next generation and I’ll do the same.”

“It’s almost like a family member.”

“A lot of farmlands will have to be sold and some farmers, probably us too, won’t be able to afford the tax and will have to sell bits of land off. Farmers won’t have money to buy that land so if anything, land corporations will purchase more land. Farmers won’t have spare cash to invest.”

There’s a lot of talk of mental health within farming communities, do you think this will have an impact on that?

“Oh massively, there’s already been a couple of fellas taking their own lives, just so they can pass it down before [the tax] starts. There’s been so much change for agriculture over the past few years, our SFP [Single-Farm-Payment] used to be £30,000/ year, with that being taken away things are a lot tighter. Farmers shouldn’t have to take subsidies or handouts to stay profitable.”

Could you tell me about the Yorkshire Young Farmers? How does it bring you together as a community?

“I was chairman of Boroughbridge Young Farmers for 3 years. [It’s] brilliant to bring like-minded young lads and lasses together. Yeh, basically have a bit of a laugh and network. Farming can be a bit of a lonely job so if you get a lot of like-minded people together it’s a lot easier to talk to people and understand the industry and make you realise you’re not in it alone.”

Do you feel positive about the future of farming in the UK?

“Not the most positive at the moment. Just the profits are so small and at busier times of the year we are working 100 hours a week. Returns aren’t there. Governments are looking for cheap imports rather than quality of food. Farmers in the EU are still getting SFU, a lot more viable than us, it is tough.”

“Keep your head down, crack on and hope for the best. Hope that the government listens to the union and hopefully try and do something about.”

Where our food comes from might not be something we often think about. But if we want to lower our carbon footprint, buying locally sourced food is an important factor to consider. Ignoring warnings from local farmers that they are struggling to stay afloat could be disastrous and a huge setback for lowering the UK’s environmental impact. 

If you are struggling with your mental health please reach out for help. 

Call Samaritans: 116 123 

Leeds Student Mental Health Support

Words by Frankie Pinchard