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One of the world’s most iconic rural brands has thrown its support behind farmers who have been left furious at the new changes to inheritance tax rules, saying it’s essential that we “look after the people who feed us”.
Ahead of a huge farmer protest expected in London on Tuesday in what is already being dubbed “rural England’s revolution”, French-based tractor producer Massey Ferguson, a subsidiary of US-based AGCO, has become the first international manufacturing firm to weigh into the debate that kicked off in the wake of Labour’s first Budget where Rachel Reeves imposed a new tax on family farms.
The chancellor has provoked outrage with the so-called “tractor tax” by extending death duties to farms worth £1 million or more at a rate of 20 per cent. Farmers have warned it will be the death of their sector unless Ms Reeves performs a U-turn.
Massey Ferguson’s UK, Ireland and Middle East sales promotion manager Lindsay Haddon agreed the company “of course” held concerns about the impact of the new tax on farmers.
“Our business and our brand, and that of our dealer network relies heavily on our customers (farmers) to flourish and continue to be able to grow their businesses without fear of persecution or added red tape,” Ms Haddon said in a written statement to the Independent.
“We have a vested interest in seeing family farms continue, generation after generation, after all we wouldn’t be here if it wasn’t for these guys. More than anything though, we all have to eat! And we know, food is precious so we look after the people who feed us.”
The intervention comes as manufacturers and distributors of farm machinery contemplate joining the fray ahead of planned protests in Westminster on Tuesday, and supermarkets were closely monitoring any potential impact the demonstrations could have on supply.
Thousands of outraged farmers will be protesting over the chancellor’s plans to impose inheritance tax on farmland for the first time since 1992 in Whitehall on Tuesday, having had to change the location of the demonstration because of the huge numbers intending to attend.
Stephen Howarth, an economist for the Agricultural Engineers Association – which represents major farm machinery manufacturers – said the inheritance tax was going to impact farmers’ confidence, which would affect their expenditure on investments like machinery.
A Treasury spokesperson said: “With public services crumbling, a £22 billion fiscal hole inherited from the previous government and 40 per cent of Agricultural Property Relief going to the 7 per cent wealthiest claimants, we made a difficult decision to ensure the relief is fiscally sustainable.
“Around 500 claims each year will be impacted and farm-owning couples can pass on up to £3 million without paying any inheritance tax – this is a fair and balanced approach.”
Meanwhile, the issue has already troubled prime minister Sir Keir Starmer who dodged another protest by farmers in Lladudno, North Wales, when he was accused of running out of the back door of the Welsh Labour conference “like a flipping rat” to avoid demonstrators.
But speaking on Sky News this morning trasnport secretary Louise Haigh, who has friends and family in the farming sector, insisted that the government would not be U-turning on the issue claiming that the tax was “fair and proportionate”.
However, there is a row over how many family farms will be affected. Department for Environment, Food and Rural Affairs (Defra) figures sugest it could be as much as 66 per cent, while the Treasury maintains it will be 28 per cent.
