The NFU president has sent a letter to the prime minister ahead of the upcoming budget, expressing concerns over the potential removal of Agricultural Property Relief (APR).

Reports suggesting the government may review APR are 'incredibly worrying' for farmers, according to Tom Bradshaw, president of the NFU.

In his letter to Sir Keir Starmer, Bradshaw urges him to 'stand by his commitments' to British agriculture by preserving APR and boosting the agriculture budget.

At the NFU’s 2023 conference, while still in opposition, Sir Keir stressed that farmers deserve a government that ‘seeks a new relationship with the countryside and farming communities… based on respect, on genuine partnership’.

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He also highlighted: “We can’t have underspends in the allocated money, we can’t have farmers struggling while they wait for the right Sustainable Farming Incentive (SFI) standards to be announced.

"We can’t have everyone burnt out by the bureaucracy and constantly moving goal posts, it’s too important”.

Despite this, there are reports Labour might reduce the agriculture budget due to the previous government’s underspend of £358m, alongside a possible review of APR, which has fuelled industry concerns.

Bradshaw called on the prime minister to reaffirm the promises made at the previous year’s conference to ensure 'certainty and stability' for the sector.

He noted that farmer confidence is at an all-time low, driven by soaring production costs, extreme weather events, and ongoing uncertainty during the agricultural transition.

Bradshaw stated: “That is why on October 30 we’re asking for an increased agriculture budget and confirmation of no change to APR.

"The loss of APR could mean family farms, who are vital to producing food for the country, providing jobs and looking after our countryside, having to be sold to cover the costs.

"Changes would amount to a 'family farm tax'. It would also have a devastating impact on tenant farmers and new entrants."

APR is designed to ensure the continuation of farming after a farmer's death, while Business Property Relief (BPR) serves a similar purpose for other family-run businesses.

Agricultural organisations argue that these reliefs enable farmers and rural businesses to keep producing food, preserve landscapes, and support the rural economy. Without them, or if a cap were imposed, the sector warns of a significant tax burden.

The Country Land and Business Association (CLA), representing many landowners, has recently urged farmers to write to their MPs, warning that removing tax relief would be a ‘catastrophic betrayal' of the nation's food producers.

The NFU’s letter also advocates for a multi-year annual agriculture budget of £5.6b, describing it as an 'essential investment' needed to achieve the government's environmental goals and maintain economic stability for farmers.

Bradshaw added: “We need stability and that genuine partnership with government which the prime minister spoke of.”

Ahead of the 30 October autumn statement, the NFU is calling on the treasury to:

- Provide sufficient resources to deliver the Farming and Countryside Programme, maintain flood defences, and implement the government’s new bTB strategy.

- Introduce enhanced capital allowances to promote investment in climate-smart initiatives.

- Limit Capital Gains Tax increases to non-business or short-term gains.

- Hold a full consultation before abolishing the Furnished Holiday Lettings regime.

- Confirm another round of the Rural England Prosperity Fund.