A landmark review for the UK Government has concluded that the nation's farming sector is 'bewildered and frightened' by a combination of policy changes and economic pressures, threatening its long-term viability.
A Call for a 'New Deal' Amidst Crisis
The report, authored by former National Farmers' Union (NFU) president Baroness Minette Batters, was published on Thursday 18 December 2025. It calls for a fundamental 'new deal for profitable farming' that properly recognises the true cost of producing food while delivering environmental benefits.
Baroness Batters, a tenant farmer from Wiltshire and the NFU's first female president, stated that the industry has faced significant instability over the past nine years. This period has encompassed global market shocks, Brexit, a sharp rise in costs, and increasingly extreme weather, including a severe drought this year.
Inheritance Tax and Funding Uncertainty Fuelling Fear
While the review's formal terms excluded the controversial changes to inheritance tax—set to apply to farm businesses valued over £1 million—Batters revealed it was the single biggest issue raised by respondents concerning farm viability.
Compounding this is the uncertainty surrounding the Sustainable Farming Incentive (SFI), the main post-Brexit agricultural payments scheme. The combination has created 'significant' ongoing concern, with some farmers questioning basic viability, let alone profitability.
The report highlights a stark financial reality: costs are projected to be 30% higher in 2026 than in 2020. Meanwhile, the £2.4 billion farming budget for England has remained largely static since 2007, even as environmental demands on producers increase.
57 Recommendations for a Resilient Future
Baroness Batters' review outlines 57 recommendations designed to create a more resilient and profitable sector. Key proposals include:
- Simplifying the SFI scheme to improve accessibility.
- Establishing a Great British farming advisory board to boost the market share of UK ingredients.
- Creating a 'Food and Drink England' body to champion domestic producers.
- Mandating nature reporting for companies to spur private green finance.
- Reforming planning rules to support farm businesses.
- Integrating agriculture into STEM education and improving food teaching in schools.
'Farmers don't want handouts from the state,' Batters emphasised. 'They want nothing more than to run thriving, profitable farming businesses, by earning a fair return for what they produce.'
Government Response: A New Partnership Board
In response to the review, Environment Secretary Emma Reynolds announced the creation of a new 'Farming and Food Partnership Board'. This body will bring together senior leaders from farming, food production, retail, finance, and government to strengthen the food system.
Ministers also stated they are taking action on planning reform to prioritise food production, speed up approvals for on-farm infrastructure, and make it easier for farmers to invest. The government pledged further steps on supply chain fairness and supporting exports.
'British farmers are central to our food security, our rural economy and the stewardship of our countryside,' said Ms Reynolds. 'This is about serious action to remove barriers, unlock investment and make the food system work better.'
