Ms Reeves has defended the change by insisting that only a “small number” of farms will be affected. However, Mr Bradshaw said the claim “shows how little this Government understands the sector.”
He said: “Very few viable farms would be worth under £1m, but lots of smallholdings and houses with a few acres let for grazing might be. The asset value of genuine food-producing farms will be high, given the size they need to be to remain viable businesses; but that’s the value of the asset, it doesn’t reflect its profitability which is often, and increasingly so, very low.”
Farmers have warned that reforms will heap pressure on their businesses at a time when many are already struggling to make a living.
Concerns have also been raised that those who inherit land could be forced to sell some of it to pay the tax due. This will potentially reduce the amount of land available for food production in the UK.
The NFU said: “Far from protecting smaller family farms, which is what ministers say they’re doing, they’re actually protecting private houses in the country with a few acres let out for grazing whilst disproportionately hammering actual, food-producing farms which are, on paper, much more valuable.”
Mr Bradshaw met with Steve Reed, the Secretary for Environment, Food and Rural Affairs, on Monday amid mounting anger from farmers. The NFU chief warned that some landowners were considering “militant” action in protest at the reforms.
Mr Bradshaw said the changes also risked endangering food security by putting farmers off making improvements to their businesses.
He said: “Unfortunately, all incentive for investment disappeared, because it will now increase your balance sheet and you’ll be liable to pay inheritance tax.
“It’s investment that delivers for food security. It’s investment that delivers for economic growth.”
Mr Bradshaw added that there would be “tragic unintended consequences” for the mental health of farmers.
The Government has insisted its inheritance tax reforms will only affect the wealthiest landowners. Those hit by the tax will be able to pay them off over a 10-year period.