Are farmers facing an uncertain future? An independent review indicates that many in the agricultural sector are feeling „bewildered and frightened“ due to proposed modifications to inheritance tax, which has raised significant concerns about their business viability.
The report, commissioned by the government and released on Thursday, includes 57 recommendations aimed at enhancing productivity, investment, and resilience within the agriculture industry. Baroness Minette Batters, the report’s author and former president of the National Farmers‘ Union (NFU), emphasized that there is „no silver bullet“ for achieving profitability in England’s farming operations.
Collaboration for Sector Growth
Environment Secretary Emma Reynolds announced plans for the government to collaborate more closely with farming and food industries. This initiative will involve a newly established farming and food partnership board, composed of senior leaders from both industry and government, tasked with driving growth, productivity, and long-term profitability.
Reynolds asserted, „When farming thrives, the whole country benefits. British farmers are central to our food security, our rural economy, and the stewardship of our countryside.“ The initiative aims to eliminate barriers, facilitate investments, and enhance the food system, enabling farm businesses to grow and plan for their futures confidently.
Significant Concerns Among Farmers
Baroness Batters called for a „new deal for profitable farming“ that would take into account the true costs of food production while also addressing environmental responsibilities. Although the report did not focus extensively on the proposed inheritance tax changes, which would apply at a 20% rate to farm businesses valued over £1 million starting in April 2026, it identified this issue as a primary concern among farmers.
Many farmers are already grappling with rising costs and increasingly severe weather, including this year’s severe drought. The uncertainty regarding the sustainable farming incentive scheme’s application closure and the anticipated changes to inheritance tax have led to profound concerns among farmers, with some questioning their viability and profitability.
Need for Urgent Action
The review detailed that costs are projected to be 30% higher in 2026 than in 2020, while the £2.4 billion farming budget in England has remained nearly unchanged since 2007. This is despite farmers being expected to comply with more environmental regulations, all with diminishing funding and uncertain support.
Baroness Batters remarked, „Farmers don’t want handouts from the state; they want to operate successful, profitable businesses, earning a fair return for their products.“ The NFU praised the report as a comprehensive assessment and acknowledged the need for reforms.
Looking Ahead
Nobody should overlook the statements from NFU President Tom Bradshaw on essential issues such as supply chain fairness, planning reforms, and export growth as top priorities. He also highlighted the urgent need for clarity on the sustainable farming incentive’s future and the adverse inheritance tax changes.
Gavin Lane, president of the Country Land and Business Association, emphasized that profitability in the sector is critically low, with many farmers struggling against high input costs and unpredictable weather patterns. He noted that upcoming inheritance tax liabilities could overshadow annual profits for numerous farm businesses.
In response to the review’s findings, the government has committed to advancing planning reforms to prioritize food production, expediting the establishment of on-farm reservoirs, polytunnels, and farm shops, and easing investment processes for farmers. Additionally, efforts are being made to enhance supply chain fairness and remove barriers to private financing, as well as support for exports and new market opportunities.
