The Budget is "a disaster" for the region's farmers with many family farms now under serious threat, a leading Suffolk farmer has warned.

Suffolk National Farmers' Union (NFU) chairman Glenn Buckingham, who farms at Framsden, near Debenham, fears the effects of the partial lifting of an inheritance relief for farm businesses will be detrimental for the whole industry.

After 2026, the 100% inheritance tax relief which has been historically applied to farms will only relate to the first £1m. After that, the rate will be 50% - leaving many farmers with a big inheritance tax bill to pay and - many fear - putting succession in peril.

Legacy farm subsidy payments which were already being phased out after Brexit have also been capped at £7,200 from next year - leaving many farmers out of pocket compared to where they would have been if it had continued as planned. The tapered scheme is due to end in 2027.

“This budget was a disaster for farmers. It puts the future of many family farms in Suffolk, and across East Anglia, under serious threat," he warned.

“The changes to Agricultural Property Relief are expected to hit 66% of farm businesses in England, including many in this region.

“This is a tax on hard working family farms. It is not a tax on the richest people in society, which the government appears to think it is.

“Just because a farm business has valuable assets, it does not mean the farmers themselves are wealthy.

“The sudden changes to environmental support schemes are also a shock. A lot is being asked of farmers at the moment and we need some joined up approaches.

“This will all add to the cost of producing food, which could lead to higher food prices in shops and supermarkets and impact farmers’ ability to deliver national food security.

“Farming is vital to Suffolk and East Anglia but changes to APR and other measures in the budget will make it harder for many family farm businesses here to produce food, support the environment and drive the economy."

It was "a big blow" for the entire region, he said.

“Farmers here are extremely disappointed and concerned about their futures, after what has already been a very challenging time for the industry due to the impact of extreme weather events, cost inflation and lack of fairness in the supply chain, among other issues.

“With all of these pressures, there will be a negative impact on farmers’ mental health.”

William Hargreaves, who leads the rural team for Savills in Suffolk, said: “Owners of land will benefit from less agricultural and business property relief with effect from April 2026.

"From that date 100% inheritance tax relief will be confined to the first £1m of such wealth, reduced to 50% thereafter.

"That will reduce, though not eliminate, the tax advantages of owning such assets, the impact on farmland values being limited by the ongoing scarcity of property brought to the market.”

The new farm scheme - ELMs (Environmental Land Management scheme) was not up and ready fully, said Mr Buckingham.

The Department for Environment, Food and Rural Affairs (DEFRA) underspent its budget by around £358m to £400m and £200m is being carried forward - but with the other savings farmers fear their budget is effectively being cut, he added.

"Farmers are working people," he said. For a farm to provide a decent living for a family it needed to be around 300 to 500 acres, he calculated. "That farm without doubt is worth £3m," he said, putting very many farmers who farm for a living above the new threshold for Agricultural Property Relief.

Kimberly Sayward, legal director at Ipswich-based law firm Birketts, said the agricultural and business relief decision was a "significant change".

"This is likely to be a significant issue which will bring the question of succession and ownership structures into sharp focus.

"Another significant change is the abolition of tax relief on inherited pensions which will have far reaching effects on overall succession plans.”