In a rare display of political unity, MPs from across the party divide have united in a call to scrap a new tax on farmers, which politicians and the farming lobby say will have a disastrous impact on the industry.

All 11 of Northern Ireland’s MPs who take their seats have signed a letter to the government, demanding that the policy be reconsidered.

It has also been signed by a number of lords.

In the autumn budget, the government announced that a 20% tax will apply to farms valued at over £1m when the owner dies and the farm is transferred to their children.

That tax is payable on any value in excess of £1m.

The government has stressed that the normal rate of inheritance tax is 40%, not 20%, and that farmers will have up to 10 years to settle the tax debt.

Despite that, there have been severe warnings about the damage it will do to small farms – as while many are asset-rich in terms of land and equipment, they often do not have cash reserves.

A rally organised by the Ulster Farmers' Union (UFU) is set to take place at 7:30pm on Monday at the Eikon Exhibition Centre to oppose the proposed changes.

The rally will be attended by key policymakers, who will hear directly from the farming community about the serious implications of these changes. Speakers include DAERA Minister Andrew Muir, Carla Lockhart MP, Jim Allister MP, Claire Sugden MLA, Patsy McGlone MLA, Declan McAleer MLA and Robbie Butler MLA.

Deputy First Minister Emma Little-Pengelly and Department for Communities Minister Gordon Lyons will also be in attendance.

Meanwhile, in a letter written to Chancellor Rachel Reeves, Carla Lockhart MP has raised her concerns about the proposal, which has been countersigned by all Northern Ireland MPs sitting in the House of Commons and Peers from the House of Lords.

The letter addressed to the Rachel Reeves reads: "Agriculture isn’t just a cornerstone of Northern Ireland’s economy, it is a fundamental part of local communities and rural life. With more than 26,000 farms, the agri-food sector supports tens of thousands of families across the region, providing vital economic, social and cultural contributions.

"The removal of Agricultural Property Relief will place a substantial and unfair financial burden on family farms, jeopardise their ability to pass on these assets to future generations and risk the sustainability of family-owned farming operations.

"The abolition of APR risks exacerbating existing pressures already faced by the agricultural sector, including rising operational costs, challenges from changing trade conditions and the uncertainties associated with climate policies."

The letter adds that should APR be removed, the Department of Agriculture, Environment and Rural Development estimates it will affect at least a third of all farms in Northern Ireland, with 75% of dairy farms impacted.

It adds: "The proposal could also diminish the UK’s food security at a time when resilience in local food production is increasingly crucial. Northern Ireland farms produce food to feed over 10 million people.

"We strongly urge the government to reconsider this decision and to preserve APR for agricultural properties to ensure that the next generation can continue to work and thrive in this essential industry."

The letter has received support from DUP colleagues Gavin Robinson MP, Sammy Wilson MP, Gregory Campbell CBE MP, Jim Shannon MP, Lord Dodds, Lord Morrow, Lord Hay, Lord Brown, Lord McCrea and Lord Weir.

It is also signed by Jim Allister MP (TUV), Robin Swann MP (UUP), Alex Easton MP (Independent Unionist), Claire Hanna MP (SDLP), Colum Eastwood MP (SDLP), Sorcha Eastwood MP (Alliance MP).

It is also signed by Baroness Foster, Baroness Hoey, Lord Lexden, Lord Kilclooney, Baroness O’Loan, Lord Bew, Lord Alderdice, Viscount Brookeborough, Rt Rev the Lord Eames, Baroness Ritchie, Lord Rogan, Lord Elliott, and Lord Empey.

Ms Lockhart said: “I wanted to send out a strong united message on this issue. I welcome and thank all those Northern Ireland MPs and peers from across the Commons and Lords who have supported this initiative.”