Opposition has been growing to the proposed changes to Agricultural Property Relief (APR) since the Budget, with the NFU organising a mass rally in Westminster later this month.
The union said 1,800 members had already registered their intention to to attend the event, which will be held on November 19 at Church House, Westminster.
NFU president Tom Bradshaw met with Environment Secretary Steve Reed and Exchequer Secretary to the Treasury James Murray, on Monday to discuss the APR changes, which would come into force in April 2026.
Mr Bradshaw challenged the figures from the Treasury that only a minority of farms would be affected.
“The Treasury is saying only 27 per cent of farms will be within scope of these changes, Defra’s own figures suggest that two-thirds of farms will be in scope," he said.
“How they can have that wide a discrepancy within Government is quite unbelievable.”
NFU representatives in North Yorkshire and Conservative MPs have also spoken out on the issue.
Rishi Sunak, former Prime Minister, and MP for Richmond and Northallerton, discussed the implications of the change this week with Martin Morrison, his wife Gillian, son Ken and his wife Laura at Grange Farm, Hornby, Northallerton.
The 500-acre poultry and arable farm, produces eggs and grows wheat to feed the hens.
Mr Sunak said: “Labour’s decision to change APR underlines how little it knows about and understands British farming.
“The Morrisons have built up their farm over a generation, they have invested heavily in it to produce the food we all need and now the future sustainability of the farm is threatened by this family farm tax.
“They face really difficult choices, which could mean having to sell land to pay the inheritance tax bill or borrow the money, both of which would impact the viability of the business.”
Mr Morrison, who is chairman of the Northallerton branch of the NFU, described the Budget announcement as a betrayal of British farmers.
He said: “After all that they said before the election, this came as a real shock which the farming community is still trying to get its head round.
“We felt we could see future ahead but this has just knocked our enthusiasm completely. It takes away the incentive to invest and it has a massive impact on the wider business community.
“They talk about the need for the growth in the economy but this just kills farmers’ confidence in developing their business.”
Lucinda Douglas, of the NFU North Riding, who also attended the meeting, added: “Tenants and landowners alike, no one will be left unscathed by the devastating impact Labour’s changes to inheritance tax will bring."
The issue was also raised by new Conservative leader Kemi Badenoch at her Prime Minister's Questions debut in the House of Commons on Wednesday.
She said that the Conservatives would “reverse Labour’s cruel family farms tax” and asked the PM to “reassure the farming community”.
Sir Keir Starmer responded: “I’m glad she’s raised farmers. Because the budget last week put £5bn over the next two years into farming. That’s the single biggest increase, unlike the £300m which was underspent under the last government.
“But when it comes to inheritance, the vast, vast majority of farmers will be unaffected, as she well knows; as they well know.”
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