New research indicates that half of UK farmers are contemplating leaving the industry due to escalating financial pressures.

Farmers are grappling with rising costs, including a 35% increase in energy prices and a 32% hike in fertilizer costs, alongside environmental threats affecting 36% of their operations.

These financial difficulties are not only impacting farm operations but are also causing significant mental health strain for 55% of farmers.

Starting in April 2026, new tax policies will limit inheritance tax relief for agricultural assets to £1 million, imposing a 20% tax rate on amounts exceeding that threshold.

Rachel Reeves has announced plans to increase the tax burden on farmers, which will further complicate their financial situations.

Campaigners warn that 75% of farms could be adversely affected by these tax changes, potentially leading supermarkets to increase reliance on foreign food imports.

James Young, Vice President of Agriculture at McCain Foods GB, stressed the importance of collaboration with farmers to tackle these unprecedented challenges.

In response to these issues, McCain has launched an initiative aimed at ensuring the sustainability of British agriculture and enhancing food security.

Mo Metcalf-Fisher from the Countryside Alliance noted that farmers are already discussing the future of their lands in light of the impending tax policies.