UFU warns future of family farming under threat as almost half report successors being deterred

The Ulster Farmers’ Union (UFU) has warned that the future of family farming in Northern Ireland is under threat, with almost half of respondents to its latest membership survey reporting that inheritance tax changes have made their intended successor less willing, less financially able, or both, to take over the family farm.

The findings, from the UFU’s Pre-Budget Membership research, reveal that 49.2% of respondents reported a negative impact on their intended successor, raising serious concerns about the next generation of farmers and the future of domestic food production. The survey also found that 71.4% reported reduced confidence in passing on a financially viable farm business, while 88.6% reported increased family stress or worry because of inheritance tax changes.

UFU Dairy Chair Cyril Orr said, “Behind these figures are farming families who have spent generations building businesses they hoped and dreamed their children would carry forward. Instead, these young people are watching their parents struggle with rising costs, uncertainty and the pressure of keeping their farms viable. It is little wonder some are questioning whether they want to take on those same challenges.

“Succession should be about giving the next generation the confidence and opportunity to build on what their families have achieved, not leaving them facing financial uncertainty before they even begin.

“We need policies that encourage young people into agriculture, not policies that make the future of family farming feel increasingly out of reach.”

The research found that 58.5% of respondents expect inheritance tax changes to create or increase a tax liability, with 37.2% anticipating a potential bill of at least £100,000.

UFU president John McLenaghan said, “These findings should be a wake-up call for this new Government. When almost half of respondents report that their intended successor is less willing or financially able to take over, we are looking at a serious long-term risk to agricultural production, rural employment and food security.

“Family farms are not simply assets on a balance sheet. They are working businesses that support our economy and produce our food. Tax policy must recognise the difference between the value of agricultural land and the income a farm can generate.

“The Chancellor has an opportunity in the upcoming Budget to respond to this evidence, restore confidence in succession and give the next generation a viable future in farming.

“The next generation should be inheriting opportunity, not uncertainty. We cannot afford to lose future farmers before they have even had the chance to begin.”

The UFU has written to MPs ahead of the Budget to present the report’s findings and call for action to protect family farm succession, encourage investment and safeguard the future of UK food production.