LAST week, I sat down with a number of local agricultural and business leaders at local business Crediton Milling, a third-generation family run animal feed business, to discuss the challenges and serious consequences of Labour’s changes to Agricultural Property Relief (APR), announced in Rachel Reeves’ first Budget.

The meeting, arranged with the help of the National Farmers’ Union (NFU), brought together voices from across the local farming community - including Barny Butterfield of Sandford Orchards, Andrew Butler of Crediton Dairy, and the team at Crediton Milling.

Their message was clear. These tax changes threaten the future of family farms - the backbone of our rural economy and national food security.

Inheritance Tax reliefs like APR were created to ensure family farms can be passed down without being broken up to pay hefty tax bills. They are not loopholes.

APR was written into law through the Inheritance Tax Act 1984 to prevent farms from being sold off when a farmer dies.

These reliefs give families certainty that their farm businesses can continue into the next generation.

For decades, governments of all political stripes have recognised the value of these protections.

In fact, while in opposition, the now Secretary of State at Defra, Steve Reed, repeatedly assured farmers that APR would not be touched. But Labour has broken that promise.

The Chancellor announced that from April 2026, the full 100 per cent relief will only apply to the first £1 million of qualifying assets, with just 50 per cent relief applying thereafter.

While the Treasury claims only 27 per cent of farms will be affected, NFU research - supported by former Treasury and OBR economists - shows that the vast majority of commercial family farms will exceed this threshold. That figure could be as high as 75 per cent.

This is a deeply flawed policy based on poor assumptions and out-of-date valuations.

If allowed to go ahead, it will force many farming families to sell parts - or all - of their farms just to pay the tax bill.

At a time when farmers are already facing extraordinary challenges, this is completely the wrong approach.

Extreme weather has destroyed crops and impacted livestock. The war in Ukraine continues to drive up input costs like fuel and fertiliser. Conflict in the Middle East and growing protectionism in global markets are putting further pressure on supply chains.

This policy adds insult to injury.

More than 270,000 people have signed a petition urging the government to reconsider these changes. Major businesses, the CBI, the TUC, and even supermarkets have joined that call. Yet the Chancellor shows absolutely no interest.

Our farming families deserve better. They feed our nation, care for our countryside, and support rural communities.

The Conservatives will continue to stand up for our farmers and oppose these damaging changes to APR.

Once our family farms are gone, they’re gone for good. Let’s not be the generation that let that happen.

Mel Stride

MP for Central Devon