Campani
Member
Simply because the potential earnings off the land can't pay for it, even if its only a percentage. It would finish majority of farms whilst at the same time devaluing the backbone of the country - the land value.
With subsidy going every single farmer with arable land is going to loose about £80/acre/year income. That's there profit so whats left to pay IHT to maintain keeping the land? Nothing basically which then sees an influx of land on the market with not enough demand.
The end result would be that land prices are more closely aligned with the profit that can be made from farming?
For people looking to get into the industry, I would think that sounds like a good deal. Obviously crap if you own land and lose a big chunk of net worth.