Ministers announced Baroness Minnette-Batters’ long-awaited Farm Profitability Review after months of delay, alongside the launch of a new Agriculture and Food Partnership Commission aimed at resetting British agriculture.
The publication of this review comes at a time when confidence in the sector, which has been tracked and noted for many years, is widely seen as being at or near historic lows among farmers.
Rising input costs, volatile markets and long-term policy uncertainty are compounded by concerns about changes to inheritance tax relief planned from April 2026, which many farmers fear could undermine succession planning and long-term viability.
The independent review was launched by the Government earlier this year and will be led by former NFU Chair Baroness Batters, with a mandate to investigate why farm profitability is declining across multiple sectors and identify practical steps that Government and industry can take to improve margins, resilience and long-term sustainability.
Ministers say the review will underpin a new approach to policy-making that brings agriculture and food production closer to the center of government decision-making, underpinned by more immediate action to support business planning and investment.
The newly announced Agriculture and Food Partnership Board will be chaired by Defra Secretary Emma Reynolds and vice-chaired by Agriculture Minister Dame Angela Eagle. It brings together leaders from agriculture, food production, retail and government with a mission to address long-standing barriers to farm-to-fork investment and productivity.
Batters’ review makes 57 recommendations aimed at improving long-term profitability, resilience and investment across agriculture. Recommendations span tax, planning, regulation, work, skills and investment, and include proposals to increase the value of food and agriculture in the UK economy.
These include calls for greater equity in supply chains, reform of food infrastructure planning rules, improved access to subsidies and finance, support for tenant farmers and new entrants, and reduced regulatory and administrative burdens.
The review also calls for a more connected approach to nature, water, energy and soil management, alongside action to build a stronger British food brand at home and abroad.
The government plans to set out its formal response through a new 25-year agricultural roadmap due next year, but ministers insist change is already underway. These include reform plans to prioritize food and agricultural infrastructure, tighter oversight of supply chain equity, efforts to unlock private finance, and a renewed focus on export promotion.
Emma Reynolds said: “When agriculture thrives, the whole country benefits. Britain’s farmers are at the heart of our food security, rural economy and stewardship of our countryside.”
He said the review “highlights the need for governments, agriculture and the food industry to work more closely together”, adding that the new board would bring “serious action to remove barriers, unlock investment and make the food system work better”.
Baroness Batters thanked those who contributed to the review and urged the industry to fully engage with its findings. She said she was delighted Defra had recognized “the need to establish a new approach to growing the British brand at home and abroad by measurably producing, creating and selling more from our farms”.
Pointing to increasing global and domestic pressures, he added: “With more extreme weather events than ever before, and a horrific ongoing war between Ukraine and the UK for 69.7 million people, now is the time to deliver food security as a national security concern.”
The new board will focus on improving the way the supply chain operates, removing barriers to investment and unlocking growth across primary production and processing.
Rather than adopting a single approach across agriculture, ministers say they will develop targeted sector plans where productivity gains are best achieved, starting with horticulture and poultry.
Alongside the board’s launch, the government is proposing changes to the National Planning Policy Framework, which are expected to speed up approvals for infrastructure such as on-farm reservoirs, greenhouses, polytunnels and farm stands.
Ministers are also planning a trade mission in 2026 to strengthen action against unfair supply chain practices, overhaul food law examiners’ oversight, work with major financial institutions to attract private investment and promote British food and drink overseas.
Farming groups said the review highlighted the need for urgent action to restore trust and build resilient and profitable businesses.
Gavin Lane, chairman of the Country Land and Business Association (CLA), said: “As this report highlights, profitability across the sector is dangerously low as farmers struggle with high input costs, low commodity prices and unstable weather conditions.”
“Many farming operations are on the margins or in the red, but soon find themselves hit with an inheritance tax burden that they cannot pay, often reducing their annual profits.
“We welcome Minette Batters’ conclusions and urge the government to work with industry to build profitable and self-sustaining farming businesses. If we don’t, food production and nature recovery will be at even greater risk.”
“Now is the time for urgent action. We need a stable policy environment, clarity in agricultural planning, real planning reform and recognition that we desperately need a coordinated approach to rural issues across government.”
But analysts warn that the scale of the challenges facing farmers remains dire, especially in the face of a changing climate. “Farm profitability has been hit by volatile gas markets and extreme weather events in recent years,” said Energy and Climate Intelligence analyst Tom Lancaster.
“Four fifths of farmers are worried about making a living from farming due to the effects of climate change,” he said, adding that England has experienced “three of the five worst harvests on record” since 2020, with farmers losing more than £2 billion in income due to extreme weather.
The government says its next 25-year agriculture roadmap will give long-term clarity and direction to the sector. But for many farmers, the question now is whether this long-awaited review and the creation of a new committee will ultimately lead to meaningful change on the ground.
