We’ve been to Holsworthy to see what local farmers and people closely connected to rural life really think about a looming new inheritance tax rule. And there’s a mixed bag of emotions.

Inherited farms worth more than £1 million are set to be taxed at 20 percent, half of the standard inheritance tax rate. This includes all assets such as land, machinery, buildings and livestock. Farms were previously exempt from tax.

The government claims that the changes are necessary to discourage wealthy investors from purchasing land and avoiding inheritance tax. Though critics argue that these changes will affect genuine family farms where land is an asset but cash flow is limited.

Mole Valley Farmers based in South Molton, North Devon, supports farmers with products and services aimed at boosting productivity and profitability. One of their 55 nationwide stores is in Holsworthy. The town is known as the heart of the ‘Ruby Country’, has a strong agricultural heritage and one of the largest livestock markets in the South West.

Jack Cordery, Mole Valley’s CEO said: “The recent decisions on Inheritance Tax and uncertainty over the Sustainable Farming Incentive have had a wide reaching impact on the agricultural sector and we are concerned the government doesn’t have the rural community at the heart of its agenda.”

“They need to listen to farmers to make better long term decisions for the food security of the nation at an incredibly uncertain time in history,” he said.

“Our farmers have been working hard to comply with the drive for greater sustainability in agriculture but they are not seeing that effort reflected in any of the decisions being made.”

This sentiment is echoed by a group of local farmers who attended the Kivells Livestock Market in Holsworthy this week. “I think the public appreciates UK agriculture more than the politicians,” says one.

“We’re governed by people who haven’t got their hands dirty,” says another. Many suggest that the inheritance tax rules simply can’t affect all farmers in the same way.

One says, “each farming area has its own uniqueness, how high your farm is above sea level, the amount of rainfall will all affect its productivity and profitability, one rule can’t apply to all farms.”

On the other hand, one anonymous agriculturalist expresses what he recognises as “an unpopular opinion, but why shouldn’t a son pay tax on their farm? Every other business has to pay tax. It’s about quality, not quantity,” he says.

“Farms have got too big, they’ve taken on too much and that’s why a lot of farmers are struggling,” he insists.

Another feels the same way, “most people are exempt, bring it on!” he says.

The scale of the effects of Inheritance Tax are still uncertain, with government figures saying that around only 500 estates a year will end up paying more, though others put the figure at around 70,000.

Jason, the Sales Director for Smallridge Bros, a John Deere dealer in Devon and Cornwall offers an optimistic perspective.

“We live off farmers’ success. The last 12 months have been particularly challenging with high interest rates and the slowing of sales.”

However, it’s promising to see that farming profitability is improving in the South West and subsequently sales are picking up, he says.

Jason remains hopeful but warns of potential challenges ahead. “I’m optimistic for the future, but err on the side of caution, we’re seeing better spending for the next tax year end. Let’s hope that industry prices stay up and things continue in the right direction,” he adds.

“Long term, there could be troubled waters ahead. It’s too early to tell what impact these changes will have on profitability,” he cautions.

Young farmers, already struggling with rising costs and uncertainty, are concerned for the future of family farming. “There’s no way anyone can start with nothing anymore,” one farmer shared.

Maddie, 23, whose grandparents own a farm that has been in her family for over 300 years, worries how her family’s farm will look when she inherits the land and assets.

“Say the farm is worth £2million, my dad would be required to pay £200,000 inheritance tax over 10 years which works out to £20,000 a year. Farms are not turning enough of a profit to have the disposable income to pay this off, so the option people are left with is to sell off parcels of land,” she explains.

“No other farmers can afford this so it’ll be brought by people to put houses on, therefore losing the countryside. The farm will be smaller when my dad inherits it and by the time I get around to inheriting the farm the same dilemma will be there”.

“The inability to pay the inheritance tax change will be the death of many farms, not just the small ones,” she adds “I work on the farm at home but there’s not really the money for me to be paid so I have to work elsewhere to afford anything.”

“I work on the home farm to help out the family. It’s definitely a way of life and not a job really. I sort of have to help at home to set myself up for the future,” she says.

Another individual, Sharon, echoes these concerns, highlighting the potential threat to food security.

“Unfortunately the new IHT rules on farms risk increases in food costs. If the current farmer is forced to sell land to pay the Inheritance Tax bill there would be no certainty land would remain in food production. Less farms, less food will promote increase in food prices,” she warns.

The stress of navigating these changes is taking a toll on farmers “It causes a lot of anxiety and stress,” one farmer admitted. “How can you budget and plan for something that’s changing so quickly?”

No matter their stance on the subject, most farmers are experiencing uncertainty and stress. Without understanding the complexities of farming lift, it seems policymakers risk making decisions that could irreversibly change the landscape of UK agriculture.