A convoy of tractors drove down the A1 through the centre of Morpeth to protest Labour’s October budget.
Hundreds of farmers gathered at Heighley Gate Garden Centre and County Hall in Morpeth as part of the “Save the Farmers, Save Our Food, Save Your Future” rally on Wednesday morning, which mirrored similar gatherings across the UK. Before leaving from Heighley Gate, those gathered heard speeches from leaders in the farming industry.
Farmers claim that the re-introduction of Inheritance Tax Relief (IHT) will have a crippling effect on farms whose landholdings make them “asset rich but cash poor” though the Government says that it will only affect around 500 estates each year. Gail Jeffrey has a small family farm in Widdrington.
She believes that IHT changes will bring about the “destruction” of small family farms. She said: “Changes will affect every farm in the country.
“Our farms are our homes and our jobs and if we have to sell up, we’ve got nowhere else to go. The future of farming is children, who are ultimately being affected – I have got three kids and it will affect them.
(Image: Newcastle Chronicle)
Edward Cuthbert, had travelled from his farm in Longframlington to protest the IHT changes. He is facing bills he hadn’t expected to by handing over his farm to his son.
“I wasn’t worried about handing it over the way it was going, but the changes mean I need to do it now. Handing the farm over is going to cost a lot of money with solicitors’ fees and things I wouldn’t have had.
“It’s lucky my son is 30 and he’s definitely going to farm, he’ll stay at it. But other farmers might not be able to rely on their sons, they might not want to be farmers or they might meet a girl and off they go.”
Farmer Edward Cuthbert
(Image: Newcastle Chronicle)
Many in Northumberland are tenant farmers and not hugely impacted by inheritance tax changes, but they are affected by increased taxes on fertiliser and farm vehicles, such as double-cab pick-ups. The vehicles, which are often used by farmers and game keepers, will be treated as cars, rather than “commercial vehicles”, with the Countryside Alliance saying tax figures could increase by as much as 211%.
Gail and her husband have sold their double-cab pick-up that they used for farm work and ferrying their three children around. She said: “We’ve got a smaller car to work on the farm and another for running kids around whereas one did both.
“You’ve got to have two vehicles to do the same job so all your emissions are up.”
A new carbon tax on fertiliser could increase costs by £50 per ton, while Defra has announced that the de-linked Basic Payment Scheme (BPS) will be phased out more rapidly than previously anticipated. Gail feels that farmers are being targeted with tax rises and the increase in costs.
She said: “Farmers are an easy target in terms of proportion, we don’t have the voting impact of urban populations.”
Farmers gathered outside County Hall in Morpeth
(Image: Newcastle Chronicle)
Nevertheless, she said she felt proud to see so many farmers out on Wednesday morning, most of whom had taken time out of work at a busy time of the year when many are preparing for the upcoming lambing season. Her pride was echoed by Jane Anderson, who is keeping her late husband’s hill farm “ticking over” until her children are ready to take over.
She said: “The day of my husband’s funeral, the local farmers lined the streets of Elsdon with their tractors so my 16-year-old son could drive his tractor in front of the hearse. It’s been very emotional watching the procession pass County Hall, knowing that’s support for the future of farming for my children.
“My husband was 50 when he died and worked on a family farm from the age of 12. All these changes have us almost at the point where we worry if his legacy will be able to continue.”
Farmer Jane Anderson
(Image: Newcastle Chronicle)
The Government has said that a farm owned by two people will be able to pass on land and property valued at up to £3m to a child or grandchild tax-free. This is made up of £1m, where they combine their standard £500,000 tax-free allowances, and another £1m tax-free allowance each of agricultural property inheritance.
The Government say reforms to agricultural property relief are expected to affect only the wealthiest 500 estates each year, and that smaller farms will not be affected by the changes. A spokesperson said: “Our commitment to farmers remains steadfast – we have committed £5 billion to the farming budget over two years, including more money than ever for sustainable food production, alongside our New Deal for Farmers to deliver a profitable farming sector and unlock rural growth.
“Our reform to Agricultural and Business Property Relief will mean farmers will pay a reduced inheritance tax rate of 20%, rather than the standard 40%, and payments can be spread over 10 years, interest-free. This is a fair and balanced approach, which fixes the public services we all rely on, affecting around 500 estates a year.”
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