When Defra addressed the Oxford Agriculture Conference, the government set out changes to inheritance tax, environmental planning and farm funding.
In her first speech at the event, Emma Reynolds outlined changes in the relationship between government and agriculture, saying they would focus on transparency, stability and long-term growth.
Speaking in Oxford on Thursday, January 8, she said farmers were “at the heart of national life”, controlling 70% of England’s land and producing 65% of the food the country eats.
Ms Reynolds said her first few months in the role were shaped by discussions with NFU and industry stakeholders, which deepened her respect for the resilience and innovation of farmers.
She also thanked the farmers who supported the community during the recent snowfall and praised those who helped clear roads and protect local residents.
A key announcement during the speech was changes to inheritance tax, first announced last month, following deep concerns raised by farmers about the impact on small and medium-sized family businesses.
Mr Reynolds said the government would increase the threshold for agricultural property relief and business property relief from £1m to £2.5m, allowing couples to inherit up to £5m without paying inheritance tax on eligible assets.
He said around 85% of properties claiming APR, including properties also claiming BPR, would no longer pay inheritance tax, adding: “Good governments will listen.”
NFU Chairman Tom Bradshaw responded to the speech, saying: “It’s heartening to see Secretary Defra’s true ambitions for a thriving agricultural industry.”
He said policies that support productivity and growth remain essential, and welcomed the commitment to working collaboratively with farmers and producers.
Mr Reynolds also confirmed plans to establish a new Agriculture and Food Partnership Board, which will bring together farmers, processors, retailers and financial institutions to shape policy across the food system.
He said farmers will have a “seat at the table” in shaping policy, stressing that food security depends on cooperation across the supply chain.
The sector’s growth plans will begin with horticulture and poultry, followed by other areas of the industry that can expand domestic production.
The Defra chief said the government would also pursue planning reforms to open up food and farming infrastructure, strengthen action on supply chain equity, support private investment and expand the UK’s food and drink trade mission.
She announced the creation of a new £30 million Farmers Cooperation Fund over three years to support farmers to share knowledge, improve productivity and work together towards environmental outcomes.
Referring to the environmental plan, Mr Reynolds acknowledged frustration with the Sustainable Agriculture Incentive, saying the system had become too complex and last year’s unexpected closure had eroded trust.
He said the government would simplify the system, improve fairness by addressing the concentration of funds in large farms, and create more certainty and transparency.
Two SFI application windows will open this year, with the first window opening in June for small farms and farms without existing contracts, followed by the second window for all farms starting in September.
Mr Reynolds said the full details and budget of the plan would be made public in advance and there would be “no more surprise and sudden closures”, adding that the plan’s core design would remain stable for the remainder of the council.
Mr Bradshaw said he was pleased to hear the Secretary of State speak of “much-needed clarity” ahead of each Sustainable Agriculture Incentive payment period.
“Agriculture is a long-term investment measured in years, not months,” he said, adding that clarity and transparency around farm budgets is important for trust and business planning.
Mr Bradshaw said key questions remained around delivery, including the rollout of the 25-year agricultural roadmap and agricultural profitability review.
“We want to work with the government to advance these policies and create confidence and profitability for agriculture and growing businesses,” he said.
NFU Vice-Chairman David Exwood welcomed SFI’s reform plans and its work to work with farmers, particularly in upland and protected landscapes.
But he warned that “there remains a significant lack of detail that farmers and producers urgently need,” adding that uncertainty continues to undermine confidence and investment.
Mr Exwood said the NFU recognized that agricultural budgets were finite and that funding needed to be distributed more evenly, but stressed that the SFI must remain accessible to all food producing enterprises. He said the NFU would support the SFI agreement’s per-hectare cap if funding caps were introduced.
He also highlighted concerns over the number of existing agri-environmental agreements set to expire, saying around 27,800 farmers are expected to reach the end of the scheme by the end of the 2026-27 financial year.
As that deadline approaches, it is “essential” that farmers have clarity on their SFI budgets for the two application windows to ensure continued environmental delivery, he said.
The announcement comes as pressure mounts on ministers to restore confidence following last year’s disruption to the farm support system.
Industry leaders said farmers will now expect faster details and deliveries, warning that confidence depends on whether clarity follows soon.
