Recent data reveals a significant decline in agricultural holdings across Scotland, raising alarms among farmers and MPs.
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In 2024, agricultural assets in certain regions of Scotland have seen a slight increase, yet official statistics reveal a troubling long-term decline. When comparing the current figures to those from 2022, the drop in agricultural holdings is as steep as 14%.
This alarming trend has sparked significant concern among local farmers and political representatives.
Impact of inheritance tax reforms
According to Harriet Cross, a Tory MP representing Gordon and Buchan, this decline is exacerbated by the Labour Party’s proposed “family farm tax.” The Scottish Conservatives obtained the figures through a Freedom of Information request, highlighting a 14% decrease in agricultural holdings in the Highlands, which now stands at 8,567 units.
Other regions, such as Angus, have also experienced declines, with a 3.5% drop to 1,190 assets. Aberdeenshire and Moray reported decreases of 6.3% and 10.5%, respectively.
Farming community’s precarious situation
Ms. Cross emphasized that these figures illustrate the precarious state of farming in Scotland. She stated, “For many, passing on the family farm is not merely a matter of inheritance but ensures food security, local employment, and a way of life that has shaped our rural communities for generations.” The proposed tax reforms, which would impose a 20% inheritance tax on agricultural assets valued over £1 million starting in April 2026, have raised fears among farmers who already face significant challenges.
Growing opposition and calls for action
Approximately 200,000 individuals have signed a petition initiated by the Conservative Party to halt Labour’s family farm tax. The government claims that the changes will only impact about one-quarter of farmers, but the reality on the ground suggests otherwise. All four UK farming unions—NFU Scotland, NFU, NFU Cymru, and Ulster Farmers’ Union—are set to participate in a day of action on January 25 to voice their concerns regarding these proposed tax changes.
Seamus Logan, MP for Aberdeenshire North and Moray East, expressed disappointment with the UK Treasury’s response to his inquiries about reviewing the agricultural property relief and inheritance tax changes. He noted, “The Treasury just doesn’t seem to want to hear these concerns.” Logan’s efforts to engage with Chancellor Rachel Reeves have yielded unsatisfactory responses, leaving many farmers feeling unheard and anxious about their future.
As the farming community grapples with these challenges, the call for a reassessment of the proposed tax reforms grows louder. The future of agriculture in Scotland hangs in the balance, and the implications of these policies could have lasting effects on the industry and rural communities.
