Standing Up for British Farmers: Why We Oppose the “Tractor Tax”.

At S. Thorogood & Sons, we’ve been deeply rooted in British farming for generations, and we are proud to be the only wholesaler still farming among our industry peers. Our relationships with farmers across the UK give us a clear understanding of the challenges they face and the dedication they put into growing the fresh produce we all rely on. That’s why we stand in firm opposition to the recent budget measures proposed by the Labour government, including the so-called “Tractor Tax” and the changes to Agricultural Property Relief (APR). We believe these measures will undermine the very foundation of British agriculture and leave family farms struggling to survive. 

British farmers are already grappling with unprecedented challenges: rising costs due to inflation, production expenses, unpredictable weather patterns, and the cost pressures of adapting to sustainable practices. This budget, with its drastic changes to APR, threatens to be a tipping point for many. For farming families, APR has been essential in protecting family-owned farms from crippling inheritance taxes, allowing them to remain operational and to pass on their heritage to future generations. Reducing or capping APR could force families to make heartbreaking decisions, including selling off portions of their farms to cover tax burdens that are not reflective of their annual profitability. 

These policy changes reflect a misunderstanding of farming as an industry. The assertion that only a minority of farms will be impacted ignores the reality that viable farms typically require significant land and assets, simply to sustain production and remain financially viable. But while these farms might carry a high asset value, they often operate with narrow profit margins. This asset value doesn’t equate to wealth; rather, it reflects the costs necessary to operate a viable farming business. The £1 million cap set for APR reveals a disconnect between policymakers and the reality of what it takes to run a productive farm in the UK. Very few commercial farms are valued under this threshold, yet they remain integral to our food supply. 

It’s also important to note that these measures could result in higher food prices for consumers, a reality that cannot be ignored in the current cost-of-living crisis. By imposing added financial pressures on the agricultural sector, the cost of produce could be pushed up, placing further strain on households across the country. 

The NFU’s call for a mass lobby of MPs this week was a step we fully support, as it brings the issue directly to those in positions to influence change. Farmers, wholesalers, and members of the public must join together to demand that policymakers recognise the vital role family farms play in our economy, our food supply, and our communities. The farming sector is more than just an economic industry; it’s a way of life, and one that should be protected rather than dismantled. 

We urge everyone, our customers, partners, and the public, to support British farmers during this critical time. There is still time for the government to reverse these measures and preserve the family farms that are the backbone of our agricultural landscape. 

S. Thorogood & Sons 

Fighting for Farmers Since 1922.