Farmer fears century-old legacy will be wiped out by inheritance tax
A farmer whose family has tended land in South Yorkshire for over a century fears his 240-acre legacy will be wiped out by Labour’s inheritance tax raid. Stephen Thompson, 65, estimates the total value of his farm at around £7 million, well above the £2.5 million threshold introduced by the government for inheritance tax exemption in December. Chancellor Rachel Reeves said the raised threshold, up from £1 million, would ensure that “ordinary family farms” are protected.
But Stephen warned that many farmers have been forced to diversify in recent years to supplement dwindling returns. In his case, he opened an onsite butchery and installed wind turbines and solar panels with government grants — hiking the land value as a result.
Diversification helps cover costs but money remains tight
Alongside his wife Karen, Stephen rears 200 indoor sows and 5,800 Duroc pigs a year, farming 200 acres of crops just to produce his own animal feed. Despite working around the clock, he says they are effectively being punished for their hard work. The diversification has helped to cover costs, but money remains very tight and the estate is at real risk of being lost because of a huge 20% inheritance tax bill.
“We’re struggling to pay people on time at the moment, that’s how bad it is,” he said. “The butchery helps to cover costs but there’s also a lot of money tied up in it, and a lot more effort. All the money’s going right out of the window and there’s nothing left at the end of the day. All the tax — National Insurance, business rates, everything — we’re just sitting ducks, really.”
Memories of near-loss after father’s death resurface
The prospect of losing the farm after he dies brings back memories of a similar scenario following the death of his father in the 1990s, just years before the Conservative government introduced the inheritance tax exemption for agricultural land that Labour overturned in April. “We are a small farm, and we will be clobbered,” Stephen said. “That’s what happened when my dad died when I was 13. We came so close to losing the farm then. It just brings it all back to you.”
“Luckily I’m in good health, but you never know,” he added. “I’ve just got to try to not die. Things are a struggle enough as it is, and it’s something we could really do without having to worry about. Especially when we’ve done everything right, everything we could.”
Farmers want to focus on feeding the nation, not tax policies
Echoing the sentiment of many in the industry, Stephen insisted that farmers simply want to “get on with the job of feeding the nation”, rather than having to campaign on tax policies. “We just want to do a good job, that’s why we’re here, it’s what we’re meant to do,” he said. “But the sad truth is, people can’t afford to do it anymore, and once they quit, they’re not going to come back.”
It comes after the number of farms for sale in England rose to a 20-year high, with the number put on sale in the first half of 2026 reaching 117, the highest for a six-month period since 2007. The Express has contacted the Department for Environment, Food and Rural Affairs (DEFRA) for comment.
