How the UK's new generation of farmers is at stake over tax plans

British farmers hit the streets of four UK cities on Wednesday, protesting against a proposed inheritance tax, raising fears about the future of family farms. 

Many farmers say the new tax could force them to sell off land and would devastate the industry, already beset with challenges. 

One family in northwest England in Chesire is particularly concerned about the struggles they face to keep their farm.

The Latham family has been tenants at Brook House dairy farm for over 150 years - that's six generations. Proposed changes to inheritance tax threaten to break their cycle of generational farming.

"The government seems to have pulled the rug up from underneath farmers, with changes to inheritance tax, agricultural property relief and subsidies. We are feeling rather unloved at the moment," Phil Latham told CGTN Europe.

Business on the line

The inheritance tax is just one part of an increasingly bleak picture for British farmers. Rising energy and fertilizer costs, cuts to export opportunities after Brexit and labor shortages have hit them hard.

This follows two decades of dealing with foot and mouth disease, a TB outbreak, and having to sell milk at a lower price than it cost to produce during COVID.

Phil Latham added: "Farmers' return on investment is about half of one percent, so it's the affordability of the tax that is the problem. I don't mind paying tax but I need to pay tax out of profits. 

"If I have to pay the tax without the profits, essentially it means the end of the business."

Confidence among UK farmers is low. According to recent government numbers, 50 percent of farmers in the country do not feel positive about their future in the industry.

Phil's 86-year-old father Robin has worked on the farm for 70 years, with no plans to retire. He still works every day, gets up at 6.30 and describes his role as "gopher" as he "fetches and carries as they need."

His 15-year-old grandson Sam wants to carry on the family tradition and be the seventh generation of Lathams to farm. But Robin is fearing the proposed tax changes.

Robin said: "We are asset rich but cash poor. Now if we have to lose 20 percent of that, that means when Sam takes over, he will be responsible for paying this new tax which has been dropped on us out of the hat. It's almost spiteful really - our role is not considered."

Like many farmers, the Lathams have needed to diversify their business. Building an equestrian center on the site of one of their former dairy farms took a multi-million dollar loan and years of work.

For the Lathams, farming is not just a livelihood, but a legacy. All three traveled to London to join the protests again on Wednesday.

Phil added: "It's time for farmers to stand up and be counted and to let the government know that they really are picking a fight they don't want to pursue. People at the end of the day need food. And hungry people don't like politicians."

All eyes are on the government to see how it responds to this growing crisis and the rising anger in the farming community.