Rachel Reeve's proposed cap on the price of supermarket essentials has raised concern among farmers who say the measures could place further pressure on already struggling businesses.
Robert Craig, the chairman of the Royal Association of British Dairy Farmers, said measures to limit the cost of everyday items such as milk, risks putting farmers out of business.
Mr Craig warned that with milk prices already 30% lower than last year, businesses like his "could not survive" if prices did not rise.
He added that the policy would likely lead to lower prices paid to farmers as supermarkets may look to offset the cost of the scheme, calling it "a lot of nonsense."
The Chancellor has approached supermarkets about capping the price of around 20 household essentials in exchange for easing some red tape.
The policy is intended to limit further increases to the cost of a weekly shop amid concerns within Government over the cost of living triggered by the war in Iran.
Farmers have also been affected by higher operating costs linked to the conflict in Iran, including increases in the price of red diesel and fertiliser.
Mr Craig said: “We’ve got 1,600 cows and I’m £1.4million short of revenue this year compared to last year.
"We could not survive at this milk price long term.”
Read the full story in The Telegraph.