A BUSINESS owner has warned of the devastating implications of what has been described as “the family farm tax”.

The Government’s inheritance tax changes will mean that from April 2026, farms worth more than £1m will face an inheritance tax rate of 20 per cent. It has sparked anger among farmers around the country, who previously did not have to pay any inheritance tax.

It’s feared the change will mean higher food prices, lower food production and farmers having to sell off land to pay.

Tom Amery-Matthews, Chair of the Watercress Association and MD of the Watercress Company - the UK’s largest grower of watercress - based at Waddock Cross near Dorchester - spoke of his concern.

He said watercress had successfully achieved Traditionally Speciality Guaranteed Status by DEFRA because of the unique farming practices involved.

He claimed every single watercress grower and farmer in the sector would have to sell their farms to pay for death duty.

He said “there is little expertise outside the businesses to take on the highly skilled nature of growing watercress” - and warned the industry will collapse within the next seven years if this is implemented.

Mr Amery will be among those from Dorset attending the NFU Mass Lobby in Westminster tomorrow.

West Dorset MP Edward Morello said he will also be “standing with farmers” and attending the protest.

He said: “Small farms are already struggling to survive. If they are forced to sell land to pay death taxes then they will become unviable as businesses. Liberal Democrat estimates suggest as many as 300 farms in West Dorset may be affected.”

James Bowditch, a farmer from Netherbury, previously told the Echo: “My grandfather died unexpectedly in 1979 when there was inheritance tax on farmers’ land so we were hit financially by that. I’m 47 now and if I die unexpectedly before the acres of land are passed on to my son or daughter they could be stuck in the same situation.

“It seems totally unfair.”

Mid Dorset and North Poole MP Vikki Slade warned that 52 farmers in her constituency are set to be impacted by the tax.

Mrs Slade said: “The Chancellor should urgently reverse course, scrap the family farm tax and take up the Liberal Democrat proposals to give farmers an additional £1 billion a year in support.”

Treasury data shows that around three-quarters of farmers will pay nothing in inheritance tax as a result of the controversial changes announced in the Budget last month.

However, farmers have challenged the figures, pointing instead to data from DEFRA which suggests 66% of farm businesses are worth more than the £1 million threshold at which inheritance tax will now need to be paid.