The NFU has called on the Prime Minister to provide concrete support for UK agriculture in his spring forecasts, warning that confidence in the sector is nearing historic lows.
The intervention comes as farm businesses grapple with rising input costs, volatile markets and lingering policy uncertainty.
Confidence is widely seen to be at or near historic lows, coupled with concerns about changes to inheritance tax relief planned from April 2026, which many fear could undermine succession planning and long-term viability.
In a letter to Rachel Reeves ahead of the Spring Forecast on March 3, the union outlined practical steps to improve productivity and unlock long-term investment.
These include effective use of tax breaks, such as capital allowances to support reinvestment and inheritance tax clarity measures, alongside a stable policy framework to promote investor confidence.
The NFU is also calling on the government to maintain the current red diesel fuel tax relief rate, warning that any changes would significantly increase the cost of running machine-intensive farming businesses.
NFU chairman Tom Bradshaw said that while there was “some common sense prevailing around inheritance tax”, the industry as a whole remained under severe strain.
He said many companies were operating on “extremely thin profit margins” and faced uncertainty leading to “disinvestment”.
He added that UK agriculture underpins the food and drink sector, contributing £153bn of value to the UK economy and supporting hundreds of thousands of jobs.
“We have clearly laid out our priorities to the Prime Minister to build on this and continue to drive economic growth,” he said.
Mr Bradshaw argued that clearer tax incentives, stronger energy resilience and long-term policy stability would help create a “more resilient, prosperous and profitable agricultural industry”.
He said such measures were essential to “stimulating the investment needed to feed 70 million people.”
Mr Bradshaw said the theme of the NFU conference in Birmingham next week was ‘Building resilience in agriculture’ and the proposed actions would help create a ‘positive atmosphere where farmers and producers can confidently make long-term investments and build resilience’.
The Treasury has not yet publicly responded to the NFU’s proposals, but has signaled it will prioritize fiscal discipline ahead of spring forecasts.
All eyes will now be on the Prime Minister’s statements to see whether the government matches its growth ambitions with practical support for primary producers.
The NFU conference will be held at the ICC in Birmingham on February 24th and 25th.
