Farmers warn the new inheritance tax could force land sales, jeopardizing generational traditions and food security.

Thousands of farmers gathered outside the British Parliament on Tuesday, many arriving on tractors, to protest an inheritance tax they argue threatens the survival of family farms and food production in the country.

This demonstration, estimated by police to involve around 10,000 participants, underscores rising tensions between rural communities and the Labour government’s fiscal policies.

The measure, informally referred to as the “tractor tax,” was introduced in the government’s recent budget as part of its efforts to raise funds. Under the policy, beginning in 2026, individuals inheriting farms valued at over £1 million ($1.3 million) will face a 20% inheritance tax.

Previously, the transfer of farms to heirs had been exempt from such taxation. Critics, including farmers and industry advocates, claim the new tax risks dismantling generational farming traditions, with some calling it a fundamental misunderstanding of rural life.

Farmers at the protest wielded signs with messages like “No Farmers, No Food, No Future” and “Starmer the Farmer Harmer,” directly addressing Prime Minister Keir Starmer.

Among the demonstrators was Emma Robinson, a 44-year-old farmer from northwest England, whose family farm has been operational for 500 years. Robinson expressed her outrage, telling Reuters she feared being forced to sell parts of the farm to comply with the new tax. “It’s being taken out of my hands by someone that’s been in parliament for literally days,” she said.

Farmers argue that while their land and machinery might carry high valuations, the profit margins of agricultural operations are slim, leaving heirs little choice but to sell land to pay the tax. Adding his voice to the protest, TV personality and farmer Jeremy Clarkson urged the government to reconsider, saying, “Please back down.”

In a bid to justify the tax, the Labour government emphasized that the changes would apply only to a small fraction of farms. Finance Minister Rachel Reeves stated the tax would affect approximately 500 farms annually, targeting the wealthiest estates and ensuring payments are made in manageable installments over a decade. Furthermore, the tax rate for these farms has been set at 20%, half the standard inheritance tax rate of 40%.

Environment Minister Steve Reed also downplayed the scale of the issue, asserting, “The vast majority of farmers will pay no more.” However, farmers have pushed back, claiming the government’s projections vastly underestimate the number of families affected.

Beyond the inheritance tax, this backlash highlights broader discontent with Labour’s budget, the first since the party’s electoral victory in July. Business groups have expressed concerns that other tax-raising measures in the budget will exacerbate inflation.

Meanwhile, farmers cite ongoing challenges, such as competition from cheaper imports that do not meet Britain’s environmental or welfare standards, shrinking income due to supermarket pricing pressures, and the added strain of climate change.

According to the Reuters report, the government has defended its reforms as necessary to fund vital public services, many of which benefit rural communities. Still, farmers insist these changes threaten their livelihoods and rural traditions. With tensions escalating, some farmers have even hinted at taking disruptive actions if their demands are not addressed.

As the debate continues, the agricultural sector remains a focal point in the broader struggle between fiscal policy and preserving long-standing farming practices. Whether Labour’s assurances can quell the growing unrest remains to be seen.