A convoy of 70 tractors could be seen in Perth’s South Inch at the weekend as farmers across the region gathered to protest against the decision to change tax rules for the agriculture sector.
Farmers from across Perthshire could be seen with huge placards stating ‘No farms. No food. No future’ in the city on Sunday, February 2 as they gathered for the rally in the city alongside politicians supporting their cause.
The tractor rally – which also included 20 pick-ups – was organised in protest over the UK Government’s decision to change Agricultural Property Relief (APR) and Business Property Relief (BPR).
Farmers argue that the APR change is deeply flawed and will damage family farms, and in turn, undermine UK food production.
The parliamentarians and NFUS have called on the UK Government to reverse the plans and consult on an alternative approach, with NFU Scotland president and Perthshire farmer NFU Scotland president Martin Kennedy previously saying: “The tractor rallies are just part of our wider, ongoing fight to get these taxation proposals reviewed.
“The changes have sent shockwaves through the farming community, causing untold stress for many whose livelihoods depend on the existence of their family farm.
“These devastating proposals must change to avoid the serious negative impact these outcomes would have on growth and employment in the agricultural sector, the wider rural economy and on the nation’s food security.”
Under the expected changes, from April 2026, the first £1m of combined business and agricultural assets will continue to attract no Inheritance Tax (IHT), but any value related to the business over and above £1m will receive a maximum 50 per cent relief.
The Country Land and Business Association (CLA) see this as potentially effecting 70,000 farms.
For instance, if someone dies after April 6, 2026 owning an IHT qualifying farm with a value of £4m, then £1m will be relieved at 100 per cent relief, the remaining £3m will receive 50 per cent relief, seeing £1.5m subject to IHT at a 40 per cent rate.
This would result in this example in a £600k IHT bill.
Perth and Kinross is expected to be particularly affected, with its large agricultural sector in the region’s rural communities.
Commenting, Mr Wishart said: “Since the UK Government’s nonsensical tax raid on family farms, I have been in regular contact with the NFUS and have spoken with a number of my constituents in the agricultural sector.
“There are genuine fears that this will result in farms being sold off or made unviable, and that as many as two thirds of farms will be impacted. Of course, this will be felt acutely in Perth and Kinross, with its vast agriculture sector.
“There is perhaps no industry that has felt the impact of the recent economic woes more than our farmers. From Brexit leading to a mass exodus of seasonal workers, to inflation and energy costs sending the running costs of farms through the roof.
“Against this backdrop, the family farm tax raid is impossible to justify. It was therefore important to me to show my support at the tractor rally, and going forward I will be using every opportunity in parliament to urge for the Chancellor to reverse the plans.
Mr Doogan added: “The UK Government’s changes to APR and BPR are ill thought out, highly damaging to all agricultural enterprise not just farms, overestimate potential receipts to the treasury as evidenced by the OBR and deliberately underestimate the number of family farm businesses that will be in scope. All this, let’s not forget, on a policy the Labour Party specifically said they would not implement ahead of the election in July.
“This cuts to the heart of the UK Government’s wholesale ignorance of Scottish Agriculture and the supply chain that underpins it.
“In my Angus and Perthshire Glens constituency, like much of Scotland, for every farm there are dozens of supply chain jobs locally working to support the industry. Labour have taken a wrecking ball to this vital Scottish industry and it cannot be allowed to stand.”
Mr Fairlie added: “There was great public support for the farmers who attended the tractor rally at the weekend. Quite rightly so, given how much we rely on our family farming sector to keep food on our plates, manage the countryside and help us in our climate challenge.
“This family farm tax will decimate their ability to do that. The Labour Government must reverse the decision and have proper dialogue and conduct a full impact assessment.”