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Home » Batters warns it will take two years for agriculture to fix its broken economic model
Agriculture

Batters warns it will take two years for agriculture to fix its broken economic model

Bussiness InsightsBy Bussiness InsightsJanuary 22, 2026No Comments4 Mins Read
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Baroness Batters delivered a series of harsh messages to the EFRA committee about profitability, planning and policy failures, warning MPs that agriculture had just two years to fix its economic model.

The former NFU president, who appeared before the committee to discuss the Farm Profitability Review on Tuesday, made it clear that the focus of his work was to reward food production, not encourage diversification as a viable alternative to farming.

He stressed that there can be no sustainable future for the sector without profitability in food production, arguing that long-term resilience depends on agriculture being profitable in its core role.

One of her clearest warnings focused on planning. Asked whether it would be possible to increase agricultural exports without reforming the planning system, Baroness Batters said “no”.

She said it was “not rocket science” that higher welfare requirements, such as lower stocking densities and slower bird growth, meant producers needed larger buildings.

He warned that unless reform plans are aligned with animal welfare policies, there is a risk of repeating past mistakes in the pig sector, leading to increased imports and squeezing domestic producers without delivering environmental or welfare benefits.

Baroness Batters pointed to Defra’s disconnect with the rest of the sector as a fundamental barrier to reform, repeatedly returning to what she described as a lack of government integration.

She used the plan as an example, questioning how a department with “no agricultural knowledge” could be expected to design systems that work for agriculture, and warned that her proposals would fail without buy-in from across Whitehall.

The discussion then turned to livestock and the lack of livestock numbers listed in the government’s agricultural roadmap. Baroness Batters said farmers needed certainty and a clear national vision, including how livestock production fit into long-term policy.

She pointed out that much of the UK is essentially livestock farming, and joked that the highlands were unlikely to grow broccoli or mill wheat any time soon.

Behind the humor, she argued for the need to separate production and consumption. He said if domestic demand cannot absorb production, the focus should shift to exports, praising the ambition and consistency of countries such as New Zealand.

He linked this to the need for accurate sectoral data and said recent challenges in the dairy industry highlight the importance of proper market monitoring and clear production planning.

Trade policy was a major topic throughout the session. On country of origin labeling, Baroness Butters said the out-of-home sector, which accounts for around half of the value of the food market, is currently not covered by voluntary labeling agreements.

He said self-regulation should be applied to the sector first before considering whether regulation is necessary.

He also warned that the SPS adjustments do not imply an adjustment to food values, particularly with regard to animal welfare or environmental standards, and reinforce the need for accessible, centralized market data to inform trade decisions.

Baroness Batters recalled her surprise during the tour, pointing out the level of dysfunction between government departments and saying that much of Whitehall was still structured for EU member states rather than operating as independent states.

Her review also applied to the UK, but she warned that without a consistent approach across the UK on trade, biosecurity and food production, the risks of divergence will be more complex than they were when the UK was in the EU.

Baroness Batters said she joined the department with a team of five staff, only one of whom had agricultural experience, with an eye on Defra’s ability to deliver reforms.

He contrasted this with other major reviews that involved dozens of staff, but praised those who became experts and challenged his recommendations, saying their progress shows that reforms are possible if the department chooses to prioritize them.

She reiterated her recommendation that “civil servants need to be out on the farm, helping out in the sheep pens or spending a day picking fruit, and farmers need to work with them. We need to plan more together about how we shape the future of food and farming.”

He said it was reassuring that the recommendations resonated strongly with Defra’s new permanent secretary Paul Kissack.

Baroness Batters spoke candidly about market failures and disease outbreaks. He said Defra did not have the budget to intervene to prevent the sector from collapsing and needed emergency funding from the Treasury.

He warned that there was no clear plan to manage risks in the event of market shocks or disease outbreaks, and said the gap left domestic production at risk.

During the session, Baroness Batters reiterated the urgency of reform.

He said the country had two years to implement a new economic model for agriculture, warning that failure to act would lead to “a different kind of change” that many in the sector would not welcome.

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