CHANGES to inheritance tax will impact a third of Northern Ireland farmers, Agriculture Minister Andrew Muir has said. 

Under plans announced in the Budget, inheritance tax will be charged at 20 per cent on farms worth more than £1m. 

It is feared that these changes will create a barrier for new generations to enter farming and force many farmers to delay or even abandon reinvestment in their businesses.

Speaking in Stormont on Monday, Minister Muir said the change "brings considerable number of Northern Ireland farmers within the scope of inheritance tax".

He continued: "It is impossible to precisely determine the number of farms that will be affected, but, from the data, one third is a reasonable estimate.

"The number affected in the dairy sector will be much higher - potentially 75 per cent."

The Minister continued: "Northern Ireland has some of the highest-value agricultural land in the United Kingdom and Ireland.

"In 2023, an 'Irish Farmers Journal' survey showed that agricultural land sold in Northern Ireland had an average value of £13,794 per acre.

"This change will therefore have a significant impact in Northern Ireland. 

"We, in our Department, will do all that we can to enable and encourage succession planning.

"However, the issue is causing real concern in Northern Ireland."

SDLP MLA Patsy McGlone advised the Minister to seek "professional advice from the likes of accountancy practices" prior to a planned meeting with the Secretary of State on the issue. 

"Will you consider doing that, please?" Mr. McGlone asked. "The issue is creating a lot of emotional turmoil among some farming families."

Minister Muir responded: "I have to focus on the vires of my Department in this. I have spoken to the President of the Ulster Farmers' Union about it. We need to work together on the matter. 

"It will obviously commission its own research on the change, and that will be valuable when making our case for Northern Ireland.

"Hopefully, in the Chamber and wider society, we can make our case to the United Kingdom Government."

Further concerns have been raised regarding agricultural funding, which will no no longer be a ringfenced addition to the Northern Ireland block grant.

This will see farmers "competing against the big beasts of Education and Health" for funding, warned DUP MLA, Michelle McIlveen. 

Minister Muir said that he will ensure that farmers continue to receive support.

" My officials are still working through the detail, but I will do all that I can to ensure that the agri-food sector continues to be supported," he said.

"I am confident that all parties in the Executive are fully supportive and care deeply about supporting our economically and socially significant agri-food sector."

Minister Muir has called for the Northern Ireland Executive to come together to provide a "ringfenced future budget for farming".

"That is one key measure on which, hopefully, we can shortly take a decision to give an element of reassurance," he said. 

"The decisions on inheritance tax and agricultural property relief are bad. 

"It was a bad Budget for farmers, and we need to do all that we can together to address those concerns."