The government has now said it will lift the intended threshold from £1m to £2.5m.

Under the original plan farmers faced paying IHT at a 20 per cent rate on land worth more than £1million from April. Defra today lifted that threshold to £2.5million.

The reforms were highlighted in the Farming Profitability Review as the "single biggest issue" facing farmers. Farms with assets of more than £1m will have to pay 20% tax.