IHT for Farmers and Milk Price Cuts

Earlier this week, I challenged the Government  over the growing financial pressures facing farmers, highlighting the impact of the inheritance tax policy and raising concerns about falling milk prices.

Speaking in the House of Commons, I questioned the Government’s logic in relation to  the recent inheritance tax changes, pointing out the Government’s U-turn in messaging before and after the Christmas recess.

“I find it interesting that the Minister says this is the right policy,” I told the House. “That is what the Government said on 23 December, but it is not what they said at oral questions on 18 December, the day before we rose for recess.”

I also raised that even farmers who may ultimately no longer be affected by the changes have already suffered financially, after spending significant cashflow and hard-earned savings on professional financial advice in order to prepare for the changes.

I also highlighted urgent concerns about the wider economic pressures on the agricultural sector and spoke about a local case:

“Just this morning, one of my local farmers contacted me to say that on New Year’s Day he was informed of a 3p per litre cut to his milk price. That level of reduction can be devastating to already tight margins.”

I also asked the Government what assessment has been made of the cumulative financial impact on farmers - not only from recent inheritance tax policy decisions, but also from poor supply chain practices, and how this all aligns with the findings of the Batters Review.

Farmers in North East Fife and across the country are facing relentless financial pressure. Mixed messages from Government and last-minute policy shifts only add to the uncertainty and cost. Even when farmers are later told they may not be affected, the damage has already been done - money has been spent, plans have been disrupted, and confidence has been shaken.

At the same time, falling milk prices and unfair supply chain practices are making it harder and harder for family farms to stay viable. The Government must urgently assess the real-world impact of these pressures and act to support the farmers who put food on our tables.