FARMERS in Fermanagh have reacted with shock at Labour’s first Budget in 14 years.

“This is going to affect us massively,” said John Egerton, a beef and sheep farmer from Rosslea.

“I have three sons, so inheritance was going to be a very big thing. We thought we had succession sorted out with a will. This announcement has completely changed the whole plan."

For decades, agricultural property has been passed on to heirs tax-free, but Chancellor Rachel Reeves announced that from April, 2026, farms and other business properties will now fall within inheritance tax.

As a result, inheritors will have to pay 20 per cent of the value of agricultural and business property above £1million.

In effect, this will mean young farmers inheriting a farm will face a tax bill of more than £200,000.

Mr. Egerton feels this is a burden most Fermanagh farmers simply cannot afford.

“We are, like other farmers, heavily invested, as is," he continued. "We have been trying to build the farm up, buying land and building calf houses to create something sustainable for each son.

“Due to this, we couldn’t afford such a large tax bill. We had a plan in place, but this has jeopardised the whole thing.”

Mr. Egerton, who is President of the Ulster Grassland Society, recently spoke on the topic of farm succession at the organisation’s annual conference in February.

He continued: “Most farmers are heavily-invested. There wouldn’t be a farmer in the country who doesn’t have a large overdraft or loan.

“These changes will have a big impact on so many farmers when it comes to future planning.”

Following the Budget announcement, the Ulster Farmers’ Union (UFU) is calling on all farmers, landowners, and supporters of the agricultural community to stand together in a show of unity at a rally to overturn family farm tax.

The rally will take place on Monday, November 18, at the Eikon Exhibition Centre at 7:30pm.

Mr. Egerton is one of many farmers from the county who are planning to attend.

“There are protests coming up, and we intend to attend those,” he added. “I would encourage other farmers to do the same.

“Of course, we would call on the Government to rethink this; whether they will listen is doubtful.”

The President of the Ulster Farmers’ Union, William Irvine, said the implications of the Budget will impact the livelihoods of more than 24,000 farming families in Northern Ireland.

He said the rally must be a show of resilience.

“This rally is about standing together, mobilising, and ensuring our message is clear — we will not accept policies that undermine the hard work, resilience, and heritage of our farming community.”

Other sweeping changes in the Budget could further impact farming families.

Under the new Budget, funding for farming in Northern Ireland will now be part of a block grant from Westminster, as opposed to previously being ringfenced.

This means that the Department of Agriculture will have to bid for funding alongside other departments, such as Health and Infrastructure.

Lord Elliot of Ballinamallard, who is also a farmer, said this will place immense pressure on the industry.

“The decision that the Northern Ireland farm support budget will no longer be ringfenced, but instead be part of the Block Grant that DAERA will have to bid for, is likely to cause farmers to go out of business," Lord Elliot said.

"It will also likely lead to significant increases in the cost of food in shops and supermarkets.

“The result will not only be bad for the farming community, but also for food consumers and the public in general.

“The current Government is certainly demonstrating a stance against the agricultural sector that has the potential to have devastating consequences.”