Labour has been warned to “heed the warning signs” after 51% of UK farmers said they are considering quitting their jobs because of economic uncertainty. More than half of the nation’s farmers could exit the industry if the Government refuses to backpedal on an unpopular tax grab, according to findings published in McCain Foods’ inaugural Farmdex. The survey, based on data collected from 200 farmers between July 14 and 18, also showed that 74% of farmers are pessimistic about the future of the sector, and 61% say their work has a negative impact on their mental wellbeing.
“The results of this survey are not surprising and highlight the stark realities of farming in 2025,” Tom Bradshaw, president of the National Farmers Union, told the Express. “Farmers and growers are continuing to face huge challenges from price volatility, extreme weather, uncertainty around the future of environmental schemes and changes to inheritance tax, which are hugely impacting mental health and leaving confidence in the sector at a record low.”
The Government announced plans to impose 20% inheritance tax on agricultural assets worth over £1 million in last year’s Autumn Budget. The Daily Express has called for a U-turn on the policy change as part of the Save Britain’s Family Farms campaign, warning that the measure will make it financially punishing, if not impossible, for farmers to pass land on to their children.
The data collected for McCain also revealed that 83% of farmers work alongside relatives, but 95% expect family-run farms to decline further over the coming decade if the current trajectory continues. Just 4% said they believe the current Government support is adequate.
It emerged in July that over 6,000 agricultural, fishing and forestry businesses had shut their doors during Labour’s first 12 months in office, the highest number since quarterly records began in 2017.
“Our own farmer confidence survey revealed that the current state of farming has, for the first time ever, resulted in investment across the board drying up, with farmers not able to make investments in key areas such as machinery, infrastructure and energy efficiency, creating a significant barrier to growth,” Mr Bradshaw continued.
“With the Autumn Budget just a few weeks away, our message to the government is clear: look at the alternatives on offer to the family farm tax and deliver policies that will help build resilience, profitability and productivity in the farming sector and allow farmers to invest.
“In turn, we can continue to produce more sustainable, climate-friendly food, meet our domestic environmental targets and deliver national food security.”
James Young, Vice President of Agriculture at McCain Great Britain and Ireland, also stressed that the importance of farming to Britain’s food system, as well as our economy and national security, “cannot be overstated”.
“Farmers across the UK are facing a number of complex challenges, and yet they continue to showcase unwavering resilience,” he said. “As a company founded by farmers, we’re proud to stand alongside 250 growers in the UK, and we are committed to playing our part to help ensure the long-term sustainability of British agriculture.
“We support our growers in a number of ways, which include investing an additional £100 million into our grower base since 2010. However, we can’t do it alone. It is crucial that industry bodies, the Government and businesses work together to heed the warning signs in the Farmdex and take action to support farmers.”
The Government has pointed to its “record investment in sustainable farming” as a way it is continuing to support the sector and insisted the inheritance tax reforms are “vital to fix the public services we all rely on”.
A spokesperson also maintained that “three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance most people pay, and payments can be spread over 10 years, interest-free”.